Foreign Investment in Thailand on the Rise

(09/05/2012)

A report from the Office of the Board of Investment (BOI) indicates that foreign direct investment in Thailand is on the rise. According to the report, foreign companies seeking promotional privileges from BOI between January and March 2012 increased by 91 percent in value, from 70.1 billion baht to 134.2 billion baht over the same period of 2011. In terms of volume, the number of applications for promotional privileges grew by 23 percent, from 254 to 312 projects. The rise in foreign investment is also attributed to the implementation of the Government’s flood protection projects. It reflects foreign investor confidence in Thailand, despite the impacts of the severe floods in 2011. During the first quarter of 2012, the electrical and electronics industry attracted foreign investment most, with 73 projects worth almost 48.2 billion baht. Coming second were metal, machinery, and transport equipment industries, which involved 91 projects worth 27.5 billion baht. Japan remained the largest group of foreign investors in Thailand, with investments worth 78 billion baht in 173 projects. The value accounted for an increase of 121 percent over the same period of last year. Malaysia came second with investments totaling 10.7 billion baht in 11 projects, followed by the United States, which submitted applications for 17 projects worth 9.1 billion baht. In 2011, Japanese investment projects seeking promotional privileges from BOI accounted for 49 percent of Thailand’s total foreign direct investment. Japan is not only the largest group of foreign investors in Thailand; it is also Thailand’s largest trading partner. The latest survey on foreign investor confidence, conducted by BOI, shows that foreign investors remain confident in Thailand. Prime Minister Yingluck Shinawatra stated that the Government would continue to implement policies to accommodate foreign investment. The corporate tax has been reduced from 30 percent to 23 percent in 2012 and would be reduced further to 20 percent in 2013. Several barriers have been removed to make it easier to set up regional headquarters in Thailand. Furthermore, she said, Thai skilled labor continued to be an important asset for foreign companies. The Government currently offers investors a comprehensive service to assist in dealing with various related agencies, by providing a single location where investors can get all their questions answered about how to start and operate a business in Thailand. The One Start One Stop Investment Center, known in short as the OSOS Center, operates as part of BOI. It is located on the 18th floor of the Chamchuri Square Building at Sam Yan intersection in Bangkok. Services of the One-Stop Service Center for Visas and Work Permits are also available at the premises of the OSOS Center.