BANGKOK — The Department of Business Development reported that foreign investment in Thailand totaled 100.062 billion baht ($3 billion) in the first eight months of 2024, with Japan being the largest investor with 136 companies and an investment of 53.176 billion baht ($1.6 billion). Additionally, 163 companies were approved in the Eastern Economic Corridor (EEC), accounting for 30% of this year’s foreign investors.
Ms. Oramon Subthaveetham, Director-General of the Department of Economic Development and Secretary of the Foreign Business Committee, announced on October 1 that 535 foreign companies were allowed to operate in Thailand from January to August 2024. Out of these, 143 foreign business licenses were granted, and 392 received certificates for foreign business activities under the Investment Promotion Acts, laws of the Industrial Estate Authority of Thailand, or using treaty rights or international agreements.
The total investment created 2,505 jobs for Thais through companies with foreign business licenses. The top five foreign investors were:
Japan: 136 companies (25% of foreign companies in Thailand) with an investment of 53.176 billion baht.
Investments include: Engineering services for the automotive industry, advertising services, repair services for tools with diamond components, health promotion applications, and contract manufacturing for vehicle parts.
Singapore: 82 companies (15% of foreign companies) with an investment of 8.438 billion baht.
Investments include: Engineering and technical services for the oil and gas industry, online advertising services, natural gas pipeline installation, software development for opinion polling and data analysis, and contract manufacturing for various parts and equipment.
United States: 76 companies (14% of foreign companies) with an investment of 3.589 billion baht.
Investments include: Engineering services for aircraft engines, retail services for various products, advertising services, business consulting, and contract manufacturing for automotive parts.
China: 68 companies (13% of foreign companies) with an investment of 8.350 billion baht.
Investments include the leasing of factory space, international trade services, software development for event management systems, machining services, and contract manufacturing for various products.
Hong Kong: 40 companies (7% of foreign businesses) with an investment of 12.330 billion baht.
Investments include: International trade services, pharmaceutical and veterinary consultancy, modern distribution center services, and contract manufacturing for electronic parts.
Foreign investment has contributed to technology and expertise transfer from investing countries to Thai workers. Examples include knowledge in horizontal drilling for pipelines, biosecurity in agriculture, leasing platform operations, and medical ultrasound equipment maintenance and repair.
Compared to the same period in 2023, foreign investment in Thailand increased by 101 companies, a 23% rise (535 companies in January-August 2024 vs. 434 companies in January-August 2023), with the value of investment increasing by 34.278 billion baht, a 52% rise (100.062 billion baht in January-August 2024 vs. 65.784 billion baht in January-August 2023). However, employment of Thai workers declined by 1,979 jobs, a 44% decrease (2,505 jobs in January-August 2024 vs. 4,484 jobs in January-August 2023), with Japanese investors remaining the top foreign investors.
Investment in the EEC
Ms. Oramon explained that in the first eight months of 2024, 163 foreign investors were active in the EEC region, representing 30% of all foreign investors that year. This was a 90% increase compared to the same period last year, with 77 more investors (163 companies in January-August 2024 vs. 86 companies in January-August 2023). The value of investment in the EEC reached 32.573 billion baht ($994 million), representing 33% of total foreign investment and a 128% increase compared to the same period last year (32.573 billion baht in January-August 2024 vs. 14.283 billion baht in January-August 2023).
Investors came from Japan (53 companies, 11.749 billion baht), China (39 companies, 3.901 billion baht), Hong Kong (15 companies, 5.064 billion baht), and other countries (56 companies, 11.859 billion baht). Investments included engineering services for automotive design, electronic parts repair services, contract manufacturing, and software development for procurement planning.
Author: Mr. KC Cuijpers
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