The value of investment in Thailand soared by 77% year-on-year to 185.7 billion baht from 397 project proposals between January and March, with South Korea being the top foreign investor in terms of value in the first quarter, says the Board of Investment (BoI).
Foreign investment accounted for 155.2 billion of total investment, a year-on-year increase of 115%.
"South Korean investors were ranked first, with investment worth 31.4 billion baht," said Narit Therdsteerasukdi, secretary-general of the BoI, based on investment projects submitted to the BoI for tax and investment incentive packages during the first three months of 2023.
In second place was Singapore (29.7 billion baht), followed by China (25 billion baht) and Japan (24.7 billion baht).
Mr Narit attributed the increase in investment value to the easing of the pandemic, which caused the government to fully reopen the country to welcome back foreign business people.
Many overseas companies also decided to relocate their production facilities to Thailand to avoid the impact of geopolitical conflicts, he said.
"Investment in the electronics sector continued to increase due to attractive investment incentives and the BoI's investment promotion under its five-year strategy," said Mr Narit.
The investment value of electrical appliances and electronic devices stood at 94.7 billion baht, the largest among targeted industries valued at 154.4 billion baht in total. This accounted for 83% of the total investment value.
Under a strategy to be implemented from 2023 to 2027, the BoI will support investments in high technology, green and smart industries as well as businesses driven by creativity and innovation, all of which are believed to lead to the new economy and increase competitiveness.
From January to March, the BoI saw the value of investment projects in sustainable and smart industries reach 4.4 billion baht, with up to 3.3 billion baht of the investment coming from renewable energy projects.
In terms of location, the Eastern Economic Corridor, an area which covers parts of Chon Buri, Rayong and Chachoengsao, recorded a year-on-year increase of 84% to 101 billion baht in investment value from 128 projects, according to the BoI.