As part of its efforts to entice additional investors to help expand Southeast Asia’s second-largest economy, the government of Thailand announced on Monday that it anticipates receiving investment proposals totalling at least 28.8 billion dollars, equivalent to one trillion baht.
According to the Thailand Board of Investment, the number of investment applications reached a 10-year high in 2024, reaching 1.14 trillion baht ($32.8 billion), reaching a 35% annual increase. This increase was spearheaded by foreign investment in data centres and cloud services.
During a news conference, the Secretary General of the Board of Investment (BOI), Narit Therdsteerasukdi, stated that investors view Thailand as a secure and appropriate location for long-term investments.
However, this year, investment is still heading in the right direction. “This year will see an increase in investment relocations,” he stated.
As Narit stated, investment pledges are anticipated to exceed 5 trillion baht in a five-year plan that begins in 2023. This is a significant increase from the initial aim of 3 trillion.
Businesses have been shifting their factories from China to Southeast Asian countries in preparation for the possibility that President-elect Donald Trump will impose significant tariffs on China.
The BOI reported that foreign investment pledges reached 832 billion baht in 2024, representing a 25% year-on-year growth.
According to the Board of Investment (BOI), Singapore was the leading foreign direct investment (FDI) source, with 305 projects, most of which were in digital services and electronics manufacturing. The total investment value of these projects was 357.5 billion baht, representing 43 percent of the total FDI applications.
Thailand’s Economic Growth Supported by Robust Foreign Direct Investment
China was the second largest source of foreign direct investment applications, with 810 projects totalling 174.6 billion baht. Most of these projects were undertaken by enterprises that manufactured printed circuit boards, automobiles, and metal items.
A global minimum corporate tax of 15% went into force on January 1st, and Narit stated that the government would implement eligible refundable tax credit measures to mitigate the impact of this tax on multinational corporations.
The worldwide tax could impact around 1,000 businesses, although he stated that not all would be required to pay higher taxes.
“We need to look at the details to see how much they are paying,” said the representative.
The present rate of Thailand’s corporate tax is twenty per cent, but businesses that are eligible for BOI incentives are eligible for an exemption that can last for up to thirteen years.
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