News Room - Business/Economics

Posted on 18 Sep 2008

BoI approvals set to shrink (Thailand)

Investment applications for Board of Investment (BoI) privileges are not expected to exceed 600 billion baht this year, down 7.69% from last year, according to secretary-general Satit Chanjavanakul.

 

Applications for the year to August fell 25% from the same period last year to 294 billion baht. In 2007, the BoI reported record levels of investment promotion applications at 650 billion baht, led largely by the auto industry seeking to take advantage of the new eco-car programme.

 

Mr Satit, speaking at yesterday's Thailand Focus investor conference, said the BoI typically received 1,300 project applications per year, of which around 500 were large-scale investments.

 

He said that foreign investors' confidence in Thailand remained relatively strong, noting a recent World Bank report ranking the country fourth in the region for ease of doing business in Asia after Singapore, Hong Kong and Japan.

 

A study by the Japan Bank for International Co-operation also placed Thailand among the top four destinations for new investment by Japanese companies in the Asia Pacific region.

 

Mr Satit told investors that Thailand offered companies a favourable location to expand into the region, with logistics networks reaching out to Asean members, China and India.

 

He acknowledged that political turmoil might have hurt Thailand's image in recent years, particularly among investors new to the country.

 

But sectors such as automobiles, electronics, computers and household appliances continued to grow strongly. Agribusiness and food also had huge potential for growth, considering Thailand's position as a leading exporter of rice, sugar, rubber and tapioca.

 

Mr Satit also highlighted new incentives offered for the alternative energy sector, including projects involving solar, biogas and wind power.