As of November 2024, the Ministry of Commerce has granted FBL approvals for foreign investment under the Foreign Business Act B.E. 2542 (1999) to a total of 884 businesses. This includes 202 businesses through direct foreign business licenses and 682 businesses through certificates of foreign business operations (through the BOI, IEAT, or the Treaty of Amity). The total investment reached 213,964 million Baht, representing a significant increase in both the number of foreign investors and the investment value compared to the previous year.
Top 5 Foreign Investors:
1. Japan
- Number of Companies: 239 (27% of total foreign businesses in Thailand)
- Investment: 119,057 million Baht
- Key sectors include:
- Engineering and technical services, including the technical testing of engines and energy use for electric vehicles
- Sourcing raw materials, components, and parts for the automotive industry for domestic wholesale business
- Food and beverages
- Digital content development
- Subcontract manufacturing services for electronic parts, vehicle parts, and plastic parts for various industries
2. Singapore
- Number of Companies: 120 (14% of total foreign businesses)
- Investment: 16,332 million Baht
- Key sectors include:
- Engineering and technical services, such as engineering design and production system planning
- Sourcing raw materials and parts for various industries, including the medical industry, for domestic wholesale business
- Petroleum drilling services in the Gulf of Thailand
- Cloud service infrastructure and equipment support
- High-tech manufacturing, including high-precision machinery and solar energy products
3. China
- Number of Companies: 117 (13% of total foreign businesses)
- Investment: 16,674 million Baht
- Key sectors include:
- Installation, testing, repair, maintenance, and training services for machinery and equipment, particularly for electric vehicle factories
- International trade and sourcing of materials for electronics and other industries for domestic wholesale business
- Enterprise software development
- Escape room entertainment services
- Subcontract manufacturing services for parts used in machinery, electrical devices, and fiber-optic communication systems
4. United States
- Number of Companies: 115 (13% of total foreign businesses)
- Investment: 23,555 million Baht
- Key sectors include:
- Engineering and technical services for website maintenance, customization, and troubleshooting
- Retail businesses, including health supplements, skincare products, and medical equipment
- Advertising services
- Repair and maintenance services for endoscopes, examination tubes, and related tools
- Subcontract manufacturing services for candy, snacks, chewing gum, instant foods, electromagnetic products, and lithium-ion batteries
5. Hong Kong
- Number of Companies: 62 (7% of total foreign businesses)
- Investment: 14,508 million Baht
- Key sectors include:
- International trade, particularly for the cosmetics industry, for domestic wholesale business
- Training, installation, maintenance, repair, and calibration services related to machinery, engines, tools, and equipment
- Distribution centers using modern technology
- Software development, including voice-to-voice interaction and targeted advertising
- Subcontract manufacturing for special fabrics and high-density battery production
Technology Transfer and Knowledge Sharing
The influx of foreign investment, especially in industries such as automotive, engineering, and digital content, has facilitated the transfer of valuable technology and know-how to the Thai workforce. This includes expertise in areas such as offshore crane control, genetic cancer testing, ceramic crafting, and high-pressure water jet repair.
EEC Investment Surge
Foreign investment in Thailand’s Eastern Economic Corridor (EEC) region has also surged. From January to November 2024, 281 foreign businesses invested in the EEC, making up 32% of total foreign investments this year. This marks an increase of 161 businesses (134%) compared to the same period in 2023 (120 businesses). The total investment in the EEC reached 50,396 million Baht, accounting for 24% of all foreign investment in 2024—an increase of 30,865 million Baht (158%) from 2023.
The EEC investment focuses on sectors aligned with Thailand’s New-Curve Industrial Policy, such as:
- Automotive industry engineering services
- Sourcing materials and components for electronics and automotive industries
- Software platform development services
- Heat treatment services
- Subcontract Manufacturing, particularly in vehicle parts, metals and plastics.
Conclusion
Thailand continues to be an attractive destination for foreign investment, especially in high-tech and strategic industries. The increase in foreign business approvals and investments signals a promising future for the country’s economy, fostering innovation, technology transfer, and job creation.
Citation: Department of Business Development : กรมพัฒนาธุรกิจการค้า กระทรวงพาณิชย์. (n.d.). https://www.dbd.go.th/en/news/27824122567
