The Thailand Board of Investment (BOI) announced that investment applications in the first quarter of 2021 increased by 80% y/y to a total value of 123.4 billion baht (USD3.9 billion). Projects in the medical and electric and electronics (E&E) sectors are leading the way, and foreign direct investment (FDI) applications in Thailand has more than doubled. The announcement was made last month.
The total number of project applications filed, 401, was up 14% from 351 in the January-March quarter of last year, according to the BOI. The 191 FDI projects accounted for 62 billion baht in total application value, up 143 per cent from the adjusted 25.6 billion baht in the total value of the 231 FDI applications submitted in the first three months of 2020.
South Korea, China, and Singapore were the top three source nations of FDI applications in the first quarter. All had similar levels of investment. According to Ms Duangjai, Korean investment rose as a result of a large-scale cooperative venture in the medical sector.
Investment in Thailand led by Medical and E&E
During the first quarter, investment applications in the target industries, which include all essential sectors that drive Thailand’s economy, reached 74.8 billion baht in value.
The medical industry attracted the most investment, with 29 projects worth 18.4 billion baht, up from 34 projects worth 17.4 billion baht a year ago. E&E followed with 34 projects for 17.4 billion baht.
The Eastern Economic Corridor (EEC) includes the provinces of Chonburi, Rayong, and Chachoengsao. The region received 117 project applications totalling 64.4 billion Baht in the first quarter of 2021. It is 39 per cent more than the 111 projects filed in the same period of 2020.
Applications for investment promotion under the BOI’s initiatives to boost production efficiency dramatically. There is a total of 39 projects totalling 8.4 billion baht. It is nearly six times the amount it had in the same period of 2020. There were 21 projects with a total investment of 5.6 billion baht to improve energy efficiency and reduce the environmental effect. Additionally, there are 16 machinery upgrade projects with a total investment of 2.5 billion baht. Two research and development projects are also in the pipeline.
The electric and electronics, agriculture and food processing sectors led the number of BOI investment applications in 2020. The surge was in the medical sector second quarter onwards. It was due to the impact of the coronavirus pandemic on demand for medical supplies and devices.
Thailand’s medical sector is drawing a lot of FDI, which is more than 100 times what it was in 2020.
Industry Predictions in terms of Investment in Thailand
According to the Thailand BOI, Foreign Direct Investment applications in the first quarter of 2021 valued US$3.9 billion. With 29 projects worth $0.6 billion, the medical sector attracted a substantial proportion of the investments. This was partly due to the coronavirus pandemic, which caused a surge in demand for medical goods and devices.
Thailand’s economy as a whole target to recover with GDP growth rates of 3.3%. The prediction is according to Fitch Solutions (Asia Monthly Report 2021).
According to DBS, Thailand’s healthcare sector has bright long-term prospects. Major reasons behind this are the ageing population, rising demand for health insurance, and the return of international patients. Thailand’s government spending is predicted to treble from $13.3 billion in 2018 to $51 billion in 2030.
This surge in Foreign Direct Investment in Thailand and predictions again points towards a bright investment perspective. BOI and EEC collectively are taking initiatives and announcing schemes to promote Foreign Direct Investment.
Thailand is also taking eminent measures to recover from the COVID-19 setback. We all know that the pandemic created a great financial disruption throughout the world. So now is the time to act and target your investment intentions towards Thailand. Mail us at [email protected] for assistance.
