Investment in target industries expands in first half, but value drops YoY
Thailand’s Board of Investment (BoI) announced on Wednesday that it had approved 784 projects by both domestic and foreign companies from January to June 2022, a 4 per cent increase year on year.
However, the total investment value in the first six months dropped 42 per cent year on year to 219.7 billion baht.
BoI secretary-general Duangjai Asawachintachit attributed the significant drop in investment to power generating mega projects approved in 2021, which had contributed more than 75.7 billion in investment.
Duangjai said this year’s investments still show significant expansion especially in target industries such as electric vehicles and digital, which have received additional investment of 42.41 billion baht and 1.45 billion baht respectively, expanding 212 and 202 per cent year on year, respectively.
In the first half, the BoI approved 395 projects with foreign direct investment valued at 130.08 billion baht. Taiwan was responsible for the highest investment – 36.1 billion baht – most of which was in automotive and components manufacturing.
Duangjai also said 217 of the approved projects are located in the Eastern Economic Corridor, with total investment of 104.85 billion baht.
Rayong received the most investment – 85.5 billion baht – from 86 projects, followed by Chonburi (16.69 billion baht from 110 projects), and Chachoengsao (2.66 billion baht from 21 projects).
This year the BoI has added four industries in the high technology category, in which approved operators will receive promotional benefits such as corporate tax exemption for 5-8 years.
They are manufacturing of high-precision machines and parts, high precision machine repairs, additive manufacturing of 3D metal printing, and manufacturing of micro technology products.
The board has also adjusted its requirement for investment projects that need to submit a feasibility study – from an investment value of 750 million baht to 2 billion baht – which will help reduce the burden on smaller investors when they prepare application documents.