Applications submitted to the Board of Investment (BoI) fell year-on-year in the first quarter, but the investment promotion agency reckons the full-year target of 900 billion baht remains achievable.
In a statement released yesterday, the BoI said from January-March, 291 projects worth a combined 234 billion baht applied for BoI investment privileges, down by 48% and 10% year-on-year, respectively.
Secretary-general Udom Wongviwatchai said in the first quarter of 2013, a total of 564 projects worth 261 billion baht were submitted.
However, foreign direct investment remained on the rise, with nearly 202 billion baht worth of 197 projects sent to the BoI, up by 28% year-on-year in terms of value but down by 41% in project amount.
“Most of the submitted projects were for the second phase of the eco-car scheme, while other projects worth tens of billions of baht were also submitted in the first quarter including those for home appliances, power plants, petrochemical and metal products,” he said.
“Discussions with potential investors indicate more projects are the way, and this has prompted us to believe that we remain on track to achieve our full-year target, which is set at 900 billion baht."
Japan still ranks tops among foreign investors, with 96 projects worth 61 billion baht handed to the BoI in the first three months.
Those figures, however, were down by 45% and 30% year-on-year, respectively.
On the other hand, projects submitted from the US, China and South Korea were higher, valued at 41 billion, 9.4 billion and 9.37 billion baht, respectively.
By industry, the automobile and auto part sectors attracted the highest investment with a total value of 157 billion baht, a jump of 265% year-on-year thanks to the launch the second phase of the government's eco-car programme.
The infrastructure and service sector rank second with overall project value of 31.4 billion baht.
That was followed by the petrochemical, plastic and paper industries at 23.2 billion and electronic and electrical appliances at 11.9 billion.
Due to the lack of a BoI main board since last October, more than 400 projects worth a combined 660 billion baht have been waiting for investment privilege approval.
A new board chaired by caretaker Prime Minister Yingluck Shinawatra is expected to be named shortly after next week’s long Songkran holiday break.