Thailand’s investment pledges jump 70% in H1, China tops FDI

BANGKOK, July 10 (Reuters) – Thailand’s investment applications between January and June jumped 70% from a year earlier, driven by foreign investors’ projects in the electronics, food, and auto sectors, the government said on Monday.

In the first six months of 2023, applications totalled 364.4 billion baht ($10.37 billion) and foreign direct investment surged 141% on-year to 304 billion baht, the Board of Investment (BOI) said in a statement.

China was the biggest investor, with projects worth 61.5 billion baht, while Singapore and Japan followed with 59 billion baht and 35.3 billion baht, respectively, it said.

The higher first-half pledges were helped by the automotive and related parts industry, which saw 80 investment projects worth 19.6 billion baht, the BOI said.

Thailand, already a major regional auto manufacturing hub, is promoting electric vehicles (EVs) as it also aims to become a hub for EV manufacturing in Southeast Asia.

Investments in EV production approved so far include projects by China’s BYD (002594.SZ) and Great Wall Motor (601633.SS).

Other manufacturers have also announced investment plans in Thailand, including China’s Changan Automobile (000625.SZ) and GAC AION New Energy Automobile, which are expected to file investment applications in the second half of the year, the BOI said.

($1 = 35.13 baht)

Reporting by Satawasin Staporncharnchai
Editing by Kanupriya Kapoor

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