#Thailand #Cloud Services #Bangkok #Thailand BOI #FDI

Thailand's Investment Boom in 2024

The Thailand Board of Investment (BOI) has announced an impressive increase in investment applications for 2024, with a remarkable 35% growth compared to previous years. The total value of applications reached 1.14 trillion baht, equivalent to approximately USD 33 billion, marking the highest record since 2014. This surge was primarily powered by substantial foreign direct investments (FDI) directed towards data centers, cloud services, and advanced electronics manufacturing.

Key Sectors Driving Investment

For the first time, the digital sector, including data centers and cloud services, took the lead in the investment rankings. With 150 projects, this sector generated pledged investments totaling 243.3 billion baht. Notable companies announcing significant projects in this area include global tech giants like Google, which is establishing extensive data centers, Australia's NextDC, India's CtrlS Datacenters, and Singapore's GDS IDC Services PTE Ltd.

Following the digital sector closely was the electronics and electrical appliances (EE) sector, which attracted 407 projects worth 231.7 billion baht. Major investments included a plant by Foxsemicon Integrated Technology Inc. focusing on high-precision machinery for the semiconductor sector and a joint venture wafer production facility between Hana Microelectronics and PTT Group.

Contributing Factors to the Investment Growth

Narit Therdsteerasukdi, Secretary General of the BOI, highlighted that the favorable response from investors to the country's initiative of being a secure and neutral location for significant projects in the digital and smart electronics arenas has led to this trend. The data center and semiconductor sectors have particularly benefitted from Thailand's policies aimed at attracting high-value projects.

The automotive, agriculture, and food sectors also displayed significant investment activities, contributing 309 projects (worth 102.4 billion baht) and 329 projects (worth 87.6 billion baht), respectively. Additionally, the petrochemical and chemical sectors accounted for 49.1 billion baht in investments.

Future Projections and Initiatives

Looking ahead, the BOI foresees this trend continuing, particularly following the establishment of Thailand's Semiconductor Board, which is expected to direct further investments towards clean energy, electric vehicles, agritech, food tech, and medical infrastructure. The government aims to attract a staggering 500 billion baht in investments by 2029, indicating a robust growth outlook for these sectors.

To facilitate these initiatives, the BOI plans to conduct roadshows in key FDI source markets, including China, the United States, Japan, and Europe, to promote Thailand's investment policies and connect with potential investors.

The latest number of investment promotion applications filed from January to December 2024 saw a 40% increase, totaling 3,137 projects compared to 2,235 in 2023, emphasizing Thailand's growing appeal as an investment destination.

FDI's share represented 73% of the overall value of applications, with Singapore emerging as the leading source, followed by substantial contributions from China, Hong Kong SAR, Taiwan, and Japan. The nature of these investments predominantly revolves around digital services and electronics manufacturing, indicating a competitive and flourishing tech sector in Thailand.

With favorable government policies and strategic initiatives aimed at expanding Thailand's technological and industrial landscape, the country is poised for a robust investment climate in the years to come.