Thailand Records Highest Investment Applications in a Decade by 2024.

Thailand is expected to reach a significant milestone in 2024, with investment promotion applications reaching their highest level in the past ten years, as reported by the Board of Investment (BOI).

Key highlights:

- Investment promotion applications in 2024 amounted to THB 1.13 trillion (US$ 33 billion), marking a 40% increase from 2023 and the highest figure in a decade. A total of 3,137 projects received approval.
- Key sectors contributing to this growth include digital, electronics, electrical appliances, automotive, agriculture, and petrochemicals.
- Foreign direct investment (FDI) applications rose by 25%, totalling THB 832.1 billion, with 2,050 projects approved. Major investors included Singapore, China, Hong Kong, Taiwan, and Japan.

Most investments were concentrated in Eastern and Central Thailand, while other regions also experienced increased activity.

Approved projects are expected to create over 210,000 jobs, utilise more than THB 1 trillion in local materials annually, and contribute over THB 2.6 trillion to the country's export value.

Sectoral contributions:

- The digital industry attracted THB 243.3 billion, driven by investments in data centres and cloud services.
- The electronics and electrical appliances sector, with a focus on semiconductors and smart electronics, secured THB 231.7 billion.
- The automotive sector, including electric vehicles, received THB 102.4 billion.
- Agriculture and food processing investments totalled THB 87.6 billion.
- The petrochemical sector focused on specialty chemicals, attracting THB 49 billion.

Contributing factors:

This increase is attributed to government efforts to stimulate economic growth, enhance infrastructure, and attract foreign direct investment. Sectors such as renewable energy, advanced technology, automotive manufacturing, and tourism have seen increased interest from both domestic and international investors.

The BOI has played a key role in creating a favourable business environment through tax incentives, streamlined approval processes, and public-private partnership initiatives. Additionally, Thailand's strategic location in Southeast Asia and its well-developed logistics network have positioned it as a regional hub for business expansion.

Outlook:

The current investment momentum is expected to reinforce Thailand's position in the global market. This trend is anticipated to support sustainable economic growth and lay a foundation for long-term development.