In the first seven months of the year, foreign investments in Thailand have surged by 17%, totaling nearly 60 billion baht. The Director-General of the Department of Business Development at the Ministry of Commerce has shared that this growth is attributed to a variety of businesses taking advantage of the Foreign Business Act B.E. 1999 to operate within Thailand.
Foreign Business Committee Approves 51 Ventures in July Alone.
The Foreign Business Committee, represented by the Director-General of the Department of Business Development, has revealed significant progress in July. A total of 51 foreign individuals or entities received approval to conduct business operations in Thailand. Out of these, 20 were investments facilitated through the acquisition of a business license for foreigners. The remaining 31 applicants obtained business certificates to establish their ventures. These approved ventures collectively contributed an impressive investment of 10.023 million baht, generating employment opportunities for 372 Thai nationals.Notably, investors from prominent countries such as Japan, Singapore, and the United States have shown strong interest in the Thai market, underscoring the nation’s growing appeal as a hub for foreign investments.
Diverse Business Sectors Attract Foreign Investment.
A multitude of business sectors have drawn foreign investments. These encompass various services and industries, including application systems aimed at preventing call monitoring, software development for digital asset management, manufacturing services for machinery and equipment (including rubber processing and general machinery), research and development for vehicle parts, and the creation of online games and applications.
Robust Growth in Foreign Investment Over Seven Months.
Throughout the first seven months of 2023 (January to July), the number of foreign investments approved under the Foreign Business Act B.E. 1999 reached a total of 377 cases. This represents a substantial 17% growth compared to the same period in the previous year. These investments were split between 122 cases involving the acquisition of business licenses for foreigners and 255 cases for business certificates. Despite a 20% reduction in the total investment value, which stood at 58.950 million baht, this decline is relative to a higher investment figure of 73.624 million baht during the corresponding period in the prior year. These investments collectively generated employment opportunities for 3,594 Thai individuals.
Top Foreign Investors The top five countries contributing to foreign investments in Thailand are:
- Japan: 84 investments (22%) totaling 19,893 million baht
- The United States: 67 investments (18%) totaling 3,044 million baht
- Singapore: 61 investments (16%) totaling 12,925 million baht
- China: 28 investments (7%) totaling 11,663 million baht
- Germany: 16 investments (4%) totaling 1,298 million baht
Knowledge Transfer Enhances Thai Expertise.
Beyond the financial contributions, foreign investments are also fostering knowledge transfer. Specialized expertise from investing countries is directly benefiting the Thai workforce. This includes crucial knowledge related to petroleum well pressure control, cement grouting techniques for petroleum drilling platforms, underground station excavation procedures, electrical and electronic design for electric train projects, electricity generation from wind energy, and aircraft tire problem-solving methodologies.
As Thailand continues to attract foreign investments and nurture knowledge sharing, the nation’s economic landscape is poised for further growth and development.