Policies attracting investors

Policies attracting investors

FTI expecting more tech firms to join in

Mr Srettha at the Government House. The premier is stepping up efforts to invite foreign business people to invest in Thailand as part of the government's plan to build a new economy. (Photo: Chanat Katanyu)
Mr Srettha at the Government House. The premier is stepping up efforts to invite foreign business people to invest in Thailand as part of the government's plan to build a new economy. (Photo: Chanat Katanyu)

The Federation of Thai Industries (FTI) expects Thailand to become more attractive to foreign investors due to clearer state policies to support their investment and continuous efforts to persuade business people to invest here.

One key policy, which was approved by the National Electric Vehicle (EV) Policy Committee chaired by Prime Minister Srettha Thavisin, is a new EV incentive package, including subsidies and a tax cut, which is aimed to further promote EV consumption and production between 2024 and 2027.

Dubbed EV 3.5, the package is central to global EV manufacturers' decision to invest in Thailand.

During the Asia-Pacific Economic Cooperation Leaders' Meeting in San Francisco last month, Mr Srettha met executives and representatives from major US corporations including Tesla, Amazon Web Services, Google, Microsoft and Citigroup and invited them to invest in Thailand.

After the meeting, Mr Srettha separately forged new cooperation with Google and Microsoft to develop Thailand's artificial intelligence (AI) and cloud technologies in a move to strengthen the country's digital competitiveness.

"The FTI believes more tech companies will consider investing in Thailand. I learned that one company already visited an industrial estate located in the Eastern Economic Corridor [EEC]," said Kriengkrai Thiennukul, chairman of the FTI.

Covering parts of Chon Buri, Rayong and Chachoengsao, the EEC is set to become a high-tech industrial hub housing 12 targeted S-curve industries, including next-generation car production and smart electronics.

Investment incentives not only encourage foreign business owners to invest in Thailand, but their clear understanding of the government's economic policies is also factored into their investment decisions.

Last month, the FTI invited 300 investors from large companies in China, Taiwan, Japan and the US to join its forum in which they discussed with the authorities the state's policies, pushed by the Pheu Thai Party-led coalition government.

Mr Srettha, who presided over the forum, told participants Thailand is eager to build a "new economy" driven by EVs, electronics, creative and digital industries as well as high-value services.

The Board of Investment, which grants investment incentives to investors, set an ambitious goal to attract investment from more than 100 leading companies creating over 10,000 jobs over the next four years.

From January to September, the board saw an upsurge in foreign direct investment applications.

The number of foreign direct investment projects soared by 49% year-on-year, accounting for 910 projects, with a 43% increase in investment value reaching roughly 399 billion baht.

China emerged as the largest source of investment applications amounting to 264 projects worth 97.4 billion baht, followed by Singapore with 133 projects, representing a combined investment of 80.2 billion baht, and Japan with a total investment pledge of 43.1 billion baht in 176 projects.

"The FTI believes many foreign companies want to expand their businesses into Asean and Thailand is under the spotlight," said Mr Kriengkrai.

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