Thailand has emerged as a major investment destination, securing a record 1.14 trillion baht ($33 billion) in investment pledges last year, driven by strong interest in data centers, cloud services, and advanced electronics manufacturing, Bloomberg reports, citing the Thai Board of Investment (BOI).
This represents a 35% surge from the previous year, marking the highest value of investment proposals since 2014.
The BOI’s Secretary-General, Narit Therdsteerasukdi, announced a target of at least 1 trillion baht in new investment proposals for 2024, signaling the nation’s continued ambition. The digital sector led the charge in 2023, with 150 projects totaling 243.3 billion baht in pledged investment. Major players like Google, NEXTDC Ltd., Ctrl S Datacenters Ltd., and GDS IDC Services Pte. committed to establishing operations within the country.
A significant driver of this investment surge is the shift in Thailand’s political landscape. The end of nearly a decade of military-backed rule in 2023 has spurred increased foreign investment, particularly in the electric vehicle (EV) and printed circuit board (PCB) industries, attracting a wave of Chinese and Taiwanese firms. The administration of Prime Minister Paetongtarn Shinawatra has pledged to extend tax incentives and pursue more free-trade pacts, aiming to revitalize manufacturing and exports.
Foreign direct investment (FDI) accounted for 73% of total proposals, or 832 billion baht. Singapore emerged as the largest source of investment, with plans worth 357.5 billion baht, often serving as a regional hub for Chinese and US companies. China followed closely with 810 projects totaling 174.6 billion baht, primarily in PCB, automotive, and metal products manufacturing. Hong Kong-based companies also showed strong interest, with 177 projects worth 82.3 billion baht.
To sustain this inflow of investment, the BOI is planning roadshows across key FDI source markets and technology hubs including China, the US, Japan, and Europe throughout the year. Furthermore, the formation of a semiconductor board with a goal to attract 500 billion baht in investments by 2029 and a global push by companies to diversify and mitigate geopolitical risks are poised to benefit Thailand.
“This year will present another opportunity for Thailand as geopolitics will prompt investors to accelerate diversification,” Narit said, adding that, “Thailand has the ability to attract investments from opposite poles.”
Thailand, known as the oldest US ally in Asia, is also exploring further incentives to entice global companies seeking to minimize the impact of the intensifying US-China trade tensions.
