On January 11, 2024, the Thailand Board of Investment (BOI) signed a Memorandum of Understanding (MOU) with UOB Thailand, marking a strengthening agreement to promote business cooperation and facilitate new investment opportunities into Thailand across UOB's key markets.
The MOU will support the strategic collaboration between BOI and UOB, one of Asia's leading banks, in fostering and facilitating new foreign direct investments into Thailand. It will also aid Thai companies in expanding overseas, with the aim of enhancing the economy and industrial connections through the strengths of both parties.
Mr. Narit Therdsteerasukdi, BOI Secretary-General, stated, "The MOU will strengthen our collaboration to encourage foreign direct investment into Thailand and across ASEAN, as well as increase opportunities for Thai overseas investment. This partnership will expand BOI's role beyond being just an incentive provider or 'Promoter,' making us an 'Integrator,' 'Facilitator,' and 'Connector.' Notably, key investors such as Great Wall Motor and BYD have been working closely with BOI and UOB to successfully implement their large-scale flagship investment projects in Thailand."
Under the MOU, UOB's Foreign Direct Investment Advisory Unit (FDI Advisory Unit) in Bangkok will collaborate with the Thailand Board of Investment (BOI) to facilitate businesses looking to invest in Thailand and the wider region. Thai and foreign companies can access UOB's tailored financial solutions and utilise the bank's regional networks to connect with various government agencies, trade associations, and professional service providers across Asia. UOB will also explore potential collaborations with BOI in investment promotion activities, including business matching fairs, trade exhibitions, and seminars to promote new investment opportunities into Thailand.
As the second-largest economy in ASEAN, Thailand continues to be one of the most successful countries in the region in attracting Foreign Direct Investment (FDI), with major sources of investment coming from Greater China and Singapore. However, increasing global uncertainty and disruptive developments in multilateral trade call for businesses in the region, including Thailand, to explore new growth opportunities within ASEAN.
Mr. Narit added, "BOI has recognised opportunities across emerging countries as vast markets with inclusive supply chains. We have established 16 BOI overseas offices in countries such as China, India, Vietnam, and Indonesia. We are also considering Singapore, currently the second-largest FDI contributor to Thailand, as a future overseas office location. Additionally, we plan to set up offices in Riyadh, Saudi Arabia, and Chongqing, China, to tap into these active investment communities and expand our outreach capability this year."
According to the UOB Business Outlook Study 2023, 83 percent of businesses in the region are eager to expand overseas, with the desire being particularly pronounced among Indonesian, Chinese, Thai, and Vietnamese companies. Thai businesses are particularly interested in expanding their investments in Singapore, Vietnam, Malaysia, and mainland China.
Mr. Tan Choon Hin, President and CEO of UOB Thailand, commented, "Thailand has consistently been one of the most attractive countries in the region for attracting Foreign Direct Investment (FDI), thanks to its developed industrial infrastructure, supply chains, and long-term growth potential. With our extensive regional network and 10 Foreign Direct Investment units across Asia, UOB is well-positioned to facilitate cross-border investments for global and Asian companies looking to diversify their production capabilities or expand their businesses into Thailand. We also aim to assist Thai companies in venturing abroad. The bank looks forward to working closely and collaboratively with BOI to accelerate the country's transition to the 'New Economy' and promote rapid FDI growth across the region."
Since its establishment in 2011, UOB's Foreign Direct Investment (FDI) Advisory Unit has assisted over 4,200 foreign companies with their cross-border expansion. UOB FDI has supported more than 370 companies in expanding into Thailand, enabling over US$1.6 billion in projected foreign direct investments and creating more than 18,000 job opportunities in Thailand since 2019. For Outbound FDI, the Bank has helped more than 210 Thai companies expand across ASEAN, with Singapore, Malaysia, and Vietnam being the top destinations for investment.