Thailand said foreign and domestic companies pledged to invest 1.14 trillion baht ($45 billion) last year as the Southeast Asian nation emerged as a hot destination for data centers, cloud services and advanced electronics manufacturing.
Investment pledges surged 35% from a year earlier and was the highest in value terms since 2014, the Board of Investment said in a statement Monday. The agency is targeting fresh proposals worth at least 1 trillion baht this year, Secretary-General Narit Therdsteerasukdi told reporters in Bangkok.
The digital sector topped the list of applications seeking investment promotion benefits last year. Companies including Alphabet Inc's Google, Australia’s NEXTDC, India’s Ctrl S Datacenters, Singapore-based GDS IDC Services Pte. and others committed to invest a total of 243.3 billion baht in 150 projects, the board said.
An end to a near-decade of military backed rule in 2023 has seen foreign companies step up investment in Thailand with the electric vehicle and print-circuit board industries attracting Chinese and Taiwanese firms. Prime Minister Paetongtarn Shinawatra’s administration has promised to extend tax incentives to lure foreign firms while chasing more free-trade pacts to revive manufacturing and exports.
Foreign direct investments made up 73% of all the proposals, or 832 billion baht, last year. Singapore was the biggest source of investment with plans worth 357.5 billion baht as Chinese and US companies used the city-state as a regional base, according to the board.
China was the second largest source of FDI applications with 810 projects worth a total of 174.6 billion baht led by printed circuit board, automotive and metal products manufacturing. Hong Kong-based companies sought permission to invest 82.3 billion baht in 177 projects.
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The Board of Investment plans to hold roadshows this year in Thailand’s all the key FDI source markets and technology hubs including China, the US, Japan, and Europe, to sustain the inflow of investments, Narit said.
The formation of a semiconductor board to draw 500 billion baht in investment by 2029 and global companies quest to mitigate geopolitical risks will work to Thailand’s advantage, Narit said.
“This year will present another opportunity for Thailand as geopolitics will prompt investors to accelerate diversification,” Narit said. “Thailand has the ability to attract investments from opposite poles.”
Thailand has said it’s exploring offering fresh incentives to attract global companies looking to minimize the hit from the US-China trade war that’s likely to intensify once Donald Trump takes office. As the oldest US ally in Asia, the country has also been known to take a neutral stance in the escalating geopolitical tension.
