The Thailand Board of Investment (BOI) said today that local and foreign investors had in 2020 filed a total of 1,717 applications for investment promotion, representing a combined investment value of 481.1 billion baht (USD16 billion)
The Thailand Board of Investment (BOI) said today that local and foreign investors had in 2020 filed a total of 1,717 applications for investment promotion, representing a combined investment value of 481.1 billion baht (USD16 billion), led by projects in the electric and electronics and the agriculture and food processing sectors, and a surge in the medical sector.
“The coronavirus outbreak represented both a challenge and an opportunity, and while the overall economy registered a slowdown in 2020, businesses that can continue to expand during the crisis, such as the medical sector, witnessed an increased number of investment applications,” Ms Duangjai Asawach, Secretary General of the BOI, told reporters.
Applications for projects in the target industries, sectors of strategic importance for the country’s economic development, amounted to 230.7 billion baht, or 48% of the total value of applications.
The top five sectors by value were:
- Electrical appliances and electronics with 50.3 billion baht worth of applications;
- Agriculture and food processing with 41.1 billion baht;
- Automotive and parts with 37.8 billion baht;
- Petrochemicals and Chemicals with 36 billion baht; and
- Biotechnology with 30 billion baht.
The medical sector saw a noticeable increase of the value of applications which grew 165%
165% increase in the medical sector
The medical sector saw a noticeable increase of the value of applications which grew 165% from 2019 to 22.3 billion baht as a result of specials incentives offered by the BOI to this industry in support of Thailand’s efforts to manage the Covid-19 crisis.
Investments in this sector came from both large companies and SMEs.
In regard to Foreign Direct Investment (FDI), some 907 project applications were filed in 2020 worth a total investment value of 213.2 billion baht.
FDI led by Japan followed by China
The FDI were led by Japanese companies, which topped the ranking both in terms of the number of applications, 211 projects, and in terms of combined investment value, 75.9 billion baht.
Investments from China came in second with 31.5 billion baht investment value, followed by US with 24.6 billion baht investment value.
The Eastern Economic Corridor, or EEC area, which comprises the provinces of Chonburi, Rayong and Chachoengsao, attracted 453 projects applications filed by both local and foreign investors, worth a combined investment value of 208.7 billion baht.
Renewal of the measures to encourage the public listing of BOI-promoted companies
At a board meeting chaired by Prime Minister Gen Prayut Chan-ocha today, the BOI approved to renew the incentives offered to BOI-promoted companies to list on the Stock Exchange of Thailand (SET) or the Market for Alternative Investment (MAI) in order to get access to new funding sources, while participating to strengthen Thailand’s capital market and economy.
The scheme grants companies going public an additional 100% corporate income tax (CIT) exemption on the value of their investment (excluding cost of land and working capital).
Projects which have already been granted BOI promotion and have started to generate income can still apply for these additional privileges and benefits on the condition they still have valid CIT exemption rights.
To be granted these additional privileges and benefits, companies must submit their applications by the end of December 2022. The companies must get listed on the SET or MAI before applying for promotion, but companies listed prior to the announcement of the measure are not eligible to this scheme.