Thailand’s Investment Growth and Its Developed Infrastructure Making ASEAN More Attractive to Investors

(09/10/2012)

Investment in Thailand continues to grow at a satisfactory level. The country’s developed infrastructure contributes to ASEAN, making the region more attractive to investors. A report from the Office of the Board of Investment (BOI) shows that the number of investment project applications from January to September 2012 exceeded the set target. Investors sought BOI promotional privileges for a total of 1,583 projects, valued at 804 billion baht, during the nine-month period. The number of projects represents an increase of 21.6 percent over the same period of 2011, when only 1,302 projects were submitted. The investment value accounts for a rise of 97 percent, compared with only 407 billion baht recorded in the same period of 2011. BOI earlier expected that the investment value between January and September 2012 would amount to 800 billion baht, but it rose to 804 billion baht. Out of the investment value of 804 billion baht, foreign direct investment came to 433 billion baht, with 1,057 projects. This represents an increase of 36 percent in volume and 70 percent in value over the same period of 2011. The industries with the highest investment value during the nine-month period included service and public utilities, with 415 projects, followed by metal products, machinery, and transport equipment, with 397 projects, electronic and electrical appliances, with 255 projects, and chemicals, paper, and plastics, with 214 projects. Speaking to American investors during her recent visit to New York, Prime Minister Yingluck Shinawatra touched on the issue of Thailand’s investment in infrastructure. She explained that one of the country’s key priorities is to promote regional connectivity. For instance, rapid railway links will be built, from Bangkok to Chiang Mai and the Northeast. This will be linked further to Laos and China as well as Malaysia and Singapore down south. Such rail links, she said, will allow cargo and passenger trains to move quickly to markets and other destinations throughout the region. In addition, Suvarnabhumi airport and the mass transit system in Bangkok will be expanded. One key project that she highlighted was Myanmar’s Dawei deep-sea port, to be linked to Laem Chabang deep-sea port and the Gulf of Thailand. This will link the Indian Ocean to the Pacific through a land bridge, providing more outlets for investors’ products. The Prime Minister stated that the ASEAN Economic Community, or AEC, is an attractive single market and production base, thanks to its population of over 600 million and a total GDP of almost two trillion US dollars. With upcoming plans to liberalize the remaining sectors on trade in services and to achieve ASEAN Single Window, AEC will be an even more attractive place to invest. Thailand’s strategic location at the heart of Southeast Asia and its developed infrastructure makes the country a natural gateway to AEC.