BANGKOK — The Department of Business Development reported that foreign investment in Thailand amounted to 100.062 billion baht ($ 3 billion) in the first eight months of 2024, with Japan remaining the top investor with 136 companies and investment of 53.176 billion baht ($1.6 billion). Meanwhile, 163 companies were approved in the Eastern Economic Corridor (EEC), accounting for 30 percent of foreign investors this year.
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 in the first eight months of 2024 (January to August).
Of these, 143 foreign business licenses were granted and 392 received certificates for foreign business activities (via investment under the Investment Promotion Acts or under the laws of the Industrial Estate Authority of Thailand or using treaty rights or international agreements).
The total investment amounted to 100.062 billion baht and created 2,505 jobs for the Thai people through companies that obtained foreign business licenses. The top five foreign investors were:
Japan: 136 companies, accounting for 25 percent of foreign companies in Thailand, with an investment of 53.176 billion baht.
The investments include:
- Engineering services, such as design for the automotive industry
- Advertising services
- Repair services for grinding stones, cutting knives, saws and tools with diamond components
- Application services for health promotion
- Contract manufacturing services (e.g. airbag components, metal forming, vehicle parts)
Singapore: 82 companies, accounting for 15 percent of foreign companies in Thailand, with an investment of 8.438 billion baht.
The investments include:
- Engineering and technical services for the oil and gas industry, such as inspection, testing and certification
- Advertising services via websites and applications
- Pipeline installation services for natural gas
- Software development for opinion polling and data analysis
- Contract manufacturing services (e.g. machine parts, metal products, light-splitting equipment).
The United States: 76 companies, accounting for 14 percent of foreign companies, with an investment of 3.589 billion baht.
The investments include:
- Engineering services for technical advice, maintenance and repairs of commercial aircraft engines
- Retail services (e.g. electric scooters, medical equipment, chemicals and pharmaceuticals)
- Advertising services
- Business consulting services
- Contract manufacturing (e.g. steering wheels, drum brakes)
China: 68 companies, accounting for 13 percent of foreign companies, with an investment of 8.350 billion baht.
The investments include:
- Services for related companies or group companies (e.g. leasing of factory space)
- International trade services, procurement of goods for domestic resale
- Software development for sales and services (e.g. event management systems, social networking apps for events)
- Machining services (coil center)
- Contract manufacturing services (e.g. metal products, printing rollers, plastic films, automatic machines with AI control).
Hong Kong: 40 companies, representing 7 percent of foreign businesses, with an investment of 12.330 billion baht.
Investments include:
- International trade services, procuring goods for domestic resale (e.g., cosmetics industry)
Consultancy services related to the use and compliance of pharmaceutical and veterinary vaccine products - Modern distribution center services
- Contract manufacturing services (e.g., metal products, electronic parts, Printed Circuit Board Assembly)
- Application services for auto loan applications and monitoring.
Foreign investment, particularly in the sectors mentioned, has contributed to technology transfer and the transfer of expertise from the investing countries to Thai workers. Examples include knowledge in horizontal drilling for pipelines, biosecurity measures in agricultural operations, operation of leasing platforms and maintenance and repair of medical ultrasound equipment.
Compared to the same period in 2023, foreign investment in Thailand increased by 101 companies, an increase of 23 percent (535 companies in the January-August 2024 period compared to 434 companies in the January-August 2023 period), with the value of investment increasing by 34.278 billion baht, an increase of 52 percent (100.062 billion baht in the January-August 2024 period compared to 65.784 billion baht in the January-August 2023 period).
However, employment of Thai workers declined by 1,979 jobs, a decrease of 44 percent (2,505 jobs in January-August 2024 vs. 4,484 jobs in January-August 2023), with Japanese investors remaining the top foreign investors as in previous years.
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 percent of all foreign investors that year. This was an increase of 90 percent compared to the same period last year, with 77 more investors (163 companies in January-August 2024 compared to 86 companies in January-August 2023).
The value of investment in the EEC reached 32.573 billion baht ($994 million), representing 33 percent of total foreign investment and an increase of 128 percent 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).
The investments include:
- Engineering services for design in the automotive industry.
- Design services for automotive parts (e.g. seat belts, airbags).
- Repair services for electronic parts.
- Contract manufacturing (e.g. chemicals for industry, automotive parts, electronic device parts).
- Software development services for procurement planning and procurement of electronic parts.
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