Throughout the initial seven months of the present year, the Kingdom of Thailand saw a surge of foreign investment reaching the sum of 58.9 billion baht. A significant proportion of this financial inflow originated from deep-pocketed investors hailing from Japan, who unhesitatingly poured an exorbitant amount of capital into accelerating the growth of their ventures within Thailand. It’s estimated that Japan stood head and shoulders above other nations with a bountiful contribution totaling 19.9 billion baht.
Hot on the heels of Japan, Singapore also made its presence felt in the Thai investment landscape, pouring 12.9 billion baht into various local sectors. Chinese and American companies also made significant contributions, investing 11.7 billion and 3.04 billion baht respectively, further propelling Thailand’s foreign investment trajectory.
Director-General of the Business Development Department, Thosapone Dansuputra, delineated that during this period, the Foreign Business Committee greenlighted 377 applications from various corners of the world under the provision of the Foreign Business Act. This 17% leap in overseas investment is remarkable compared to the same period in the previous year. Despite this, there was a 20% dip in the overall value of these investments compared with the corresponding period in the preceding year.
One of the most uplifting outcomes of this capital influx is the transformative impact it’s had on Thailand’s labor market. Statistics indicate that this influx has created substantial employment opportunities for 3,954 local Thai citizens, demonstrating a 9% rise or a boost of 286 workers.
Analyzing the volume of investment applications received, Japan, again, took the prime spot with a staggering 84. The United States trailed with 67, followed closely by Singapore with 61, China with 28, and Germany rounding out the top five with 16.
Thosapone additionally revealed that the lion’s share of the businesses benefiting from these lucrative licenses align with Thailand’s strategic objectives for infrastructure development and investment promotion. Their intention is to deliver an impactful punch, strengthening Thailand’s reputation as a formidable competitor on the global stage.
Furthermore, he elaborated on the eclectic mix of businesses that received the green light. These include intriguing ventures, such as petroleum exploration services in surveyed regions within the Gulf of Thailand; offshore petroleum well maintenance and repair services; various services allied with electric railway projects, including design, procurement, construction, development, testing, and operations management. Investments also streamed into the fields of natural gas pipeline construction, gas control station testing, as well as the establishment of onshore gas transmission system facilities. Innovative software service providers that cater to the needs of multinational businesses also featured on the list.
Thosapone disclosed that a noteworthy segment of these foreign investors, approximately 19%, have expressed strong interest in committing capital within the Eastern Economic Corridor (EEC) investment hotspot. This route alone has soaked up investments to the tune of 12.3 billion baht, accounting for 21% of the total foreign investment portfolio.
The Japanese, once again, led the charge, deploying 5.37 billion baht within the EEC, with China and South Korea chipping in with 893 million and 287 million baht respectively. Simultaneously, an invigorating mix of 25 other investors contributed a combined flourishing heap of financial commitment, totaling 5.78 billion baht.
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