The ministry of commerce recently announced that foreign and local investors filed 397 applications for investment promotion during the first quarter of 2023, worth a combined USD5.5 billion, up 77% in the same period of last year.
The number of applications for investment promotion in the first quarter increased considerably, demonstrating investors' interest in the investment promotion benefits offered under the new strategy aiming to restructure the Thai economy towards a new economy,
E&E (electrical & electronics) dominated the sector ranking with applications worth a combined USD3.6 billion in investment value. The food processing came in second with USD 750 million worth of applications.
Meanwhile, FDI (foreign direct investment) projects soared 115% in value from the previous year period to USD 5 billion representing 83% of total applications. The number of FDI projects increased 10% to 211.
The Republic of Korea topped the FDI value, followed by Singapore and China respectively while Japan ranked in the fourth position with combined investment value of USD 700 million, more than double compared to the year earlier period.
The Eastern Economic Corridor (EEC), Thailand's high-tech industrial area comprising Chonburi, Chachoengsao, and Rayong provinces, topped the regional ranking attracting USD 325 million worth of investment pledges, almost double compared to the year earlier.
Changan Automobile, a leading Chinese car manufacturer, has recently announced it will invest USD 285 million in Thailand, to set up its first right-hand drive electric vehicle (EV) production base outside of China.
The factory, with an initial production capacity of 100,000 vehicles for domestic and export markets, strengthens Thailand's aim to make Thailand a major global production base for EVs.
Thanks to these efforts, Changan Automobile has officially announced its decision to invest in establishing an electric car factory in Thailand. The investment is set to create a production base for BEV, PHEV, REEV (Range Extended EV), and batteries. The company aims to market the vehicles in Thailand as well ASEAN, Australia, New Zealand, England, and South Africa, to meet the rapidly growing demand for electric cars.
Company's confidence in Thailand's infrastructure, market potential, proactive policy to promote a complete EV ecosystem, and comprehensive supply chain that is ready to support EV production.
The Ministry of Commerce has recently approved a total of 26 electrified vehicles production projects, including battery electric vehicles (BEV), plug-in hybrid (PHEV) and hybrid (HEV) from 17 companies with a total additional investment value of USD 280 million
Thailand started implementing in first quarter 2023 an even more ambitious five-year investment promotion strategy aimed at wooing more advanced technologies and upstream industries to bring about a new era of economic development.
Under the new strategy, Thailand is offering much-improved incentives. These include up to 13 years corporate income tax exemption without a cap for investments in upstream industries and advanced technology, such as wafer fabrication, biotech, nanotech, and advanced materials, entailing innovation, and technology transfer through research cooperation with Thai entities. For certain categories, investors and their top foreign talent also could apply for 10-year Long-Term Resident visas.
While Thailand remains a major manufacturer of conventional vehicles, the EV investments by BYD and Foxconn, as well as earlier EV investments by Chinese rivals Great Wall Motor and SAIC Motor, and by Germany's Mercedes-Benz, which chose Thailand as the first location in the region to build its fully electric Mercedes-EQS model, meaning that Thailand is on the right track to becoming an important regional EV hub.
