Thailand's Q1 investment soars to THB 431 billion, driven by digital and automotive sectors

Hong Kong emerged as the top foreigner investor, followed by China and Singapore, reflecting Thailand's robust potential.

Thailand’s Board of Investment (BOI) on Wednesday reported that investment applications surged to 431.24 billion baht in the first quarter of 2025, with the digital and automotive sectors leading the way. Hong Kong emerged as the top foreigner investor, followed by China and Singapore, reflecting Thailand's robust potential.

Narit Therdsteerasukdi, BOI’s Secretary General, disclosed that the investment trend in Thailand for 2025 continues to show strong growth and attracts ongoing interest from investors. The first quarter witnessed a significant increase in investment applications, both in terms of the number of projects and investment value. Specifically, there were 822 investment promotion applications, a 20% increase compared to the same period last year. The total investment value reached 431.24 billion baht, a substantial 97% increase year on year, indicating strong investor confidence in Thailand's potential.

The industrial sectors with high investment values include: Digital at 94.73 billion baht (40 projects), electronics and electrical appliances at 87.81 billion baht (122 projects), automotive and parts at 23.49 billion baht (72 projects), renewable energy at 17.51 billion baht (102 projects), petrochemicals and chemicals at 13.94 billion baht (81 projects), agriculture and food processing at 12.71 billion baht (61 projects), tourism at 9.26 billion baht (10 projects), and medical at 8.03 billion baht (25 projects).Foreign Direct Investment (FDI) continued its expansion, with 618 projects applying for promotion, a 43% increase year on year, and a total investment value of 267.66 billion baht, a 62% increase year on year. The top 10 countries/economic zones with the highest investment application values are: Hong Kong at 135.15 billion baht, China (47.30 billion baht), Singapore (38.07 billion baht), Japan (25.11 billion), Taiwan (4.75 billion baht), Netherlands (2.14 billion baht), Malaysia (1.91 billion baht), Ireland (1.62 billion baht), France (1.53 billion baht), and Norway (1.41 billion baht).

In terms of geographical areas, the majority of the investment, valued at 246.55 billion baht from 444 projects, is concentrated in the Eastern region. This is followed by the Central region at 152.52 billion baht, the Southern region at 17.25 billion baht, the Northeastern region at 5.55 billion baht, the Western region at 3.98 billion baht, and the Northern region at 2.93 billion baht, respectively.

The BOI also reported a continuous increase in investment promotion under the smart and sustainable industry upgrade measures, which focus on improving the efficiency of existing businesses. In the first quarter of 2025, there were 82 applications with a total investment value of 5.54 billion baht. The majority of these investments are in energy conservation, renewable energy utilization, machinery upgrades, the use of digital technology to enhance production efficiency, and the adoption of automation and robotics.Regarding investment promotion approvals in the first quarter of 2025, there were 776 projects with a total investment value of 582.22 billion baht. These approved projects are expected to utilize approximately 190 billion baht per year in domestic raw materials, accounting for about 43% of the total raw material value. They are also projected to create around 60,000 jobs for Thai nationals and increase the country's export value by over 390 billion baht per year. The issuance of promotion certificates, the closest step to actual investment, involved 660 projects with a total investment of 236.77 billion baht.

Narit said the investment statistics for the first quarter indicate continued investment momentum in Thailand from the previous year. However, going forward, the United States' tax policies and the polarization and technological protectionism of major powers will pose more intense competition for Thailand from the US, China, and regional ASEAN rivals. 

“Thailand needs to undergo a significant adjustment to maximize the opportunities arising from these global changes. This includes creating high-value jobs, promoting technology transfer, joint ventures, the use of domestic raw materials, maintaining appropriate levels of competition, and protecting certain industries where Thai operators are vulnerable. The aim is to ensure that Thailand attracts investments that not only bring capital into the country but also genuinely benefit Thailand and its people,” he said.

(2025/04/30-00:00)