BoI eyes applications of B720bn

BoI eyes applications of B720bn

Infrastructure investment and better relations with the US and EU to drive outlays

The government expects applications submitted to the Board of Investment (BoI) to grow by 12% to 720 billion baht in 2018, thanks to infrastructure investment and a better international relationship with the US and the EU.

Deputy Prime Minister Somkid Jatusripitak said the state's megaprojects are aimed at building confidence among overseas investors, especially in transport-related infrastructure.

Some railway projects will connect the flagship Eastern Economic Corridor (EEC) in three strategic provinces: Chachoengsao, Chon Buri and Rayong. The government started construction of some projects last year.

"There are many positive factors leading to a projection that the country's GDP growth will increase this year from 2017," Mr Somkid said.

"For our international relationships, both the US and EU have a better opinion of Thailand now in terms of an investment destination."

Prime Minister's Office Minister Kobsak Phutrakul said the government wants to promote and upgrade investment here, with the imminent EEC project designed to improve investor confidence for the long term.

In 2018, the government is expected to issue terms of reference for several infrastructure megaprojects, including the Don Mueang-Suvarnabhumi-U-tapao high-speed rail network, worth 210 billion baht; the U-tapao airport upgrades, worth 160 billion; deep-sea ports at Sattahip, Map Ta Phut and Laem Chabang, worth 8 billion; and other infrastructure projects valued at 150 billion.

Mr Kobsak said the government has already extended the smart visa programme for investors from one to five years for each firm that invests in 10 targeted S-curve industries and brings its researchers and specialists to Thailand.

The 10 industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.

"Researchers and specialists can upgrade the country's industrial sector to encourage new development in innovation and technology," Mr Kobsak said.

"We believe the EEC project will attract new investors from Japan, South Korea, China, the US and Europe."

The BoI reported that Thai and foreign companies submitted applications for incentives covering 1,456 projects with a value of 641 billion baht in 2017, up nearly 7% from the year before.

The figure exceeded the BoI's projection of 600 billion baht.

BoI secretary-general Duangjai Asawachintachit said the state's megaprojects and overseas roadshows could attract many investors to submit applications.

Of the total projects, the EEC contributed 388 projects worth 269 billion baht, while the S-curve industries accounted for 392 billion baht in total value.

Last year, Japan applied for the highest amount of investment applications in Thailand, valued at 133 billion baht. Singapore came second with 40 billion baht, followed by China (27 billion), the US (20 billion) and the Netherlands (15 billion).

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