Board of Investment promotion applications jump 28%

Thailand's investment promotion applications rose 28% year-on-year to 1,954 projects worth more than 1.7 trillion baht in the first nine months of the year, driven largely by artificial intelligence (AI)-related investments and strong growth in the electronics, agriculture and food sectors.

"The increase reflected both a global shift in investment flows amid geopolitical tensions and rapid technological change," said Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI).

The figures underscore Thailand's growing role in digital and AI supply chains while highlighting the continued strength of its agricultural and food industries.

The digital sector attracted the largest share of applications, with 139 projects worth over 1.17 trillion baht, nearly double the level recorded a year earlier.

Electronics and electrical appliances ranked second, with 262 projects valued at 189.37 billion baht, up 7%.

Mr Narit said rising demand for AI technologies and advanced products requiring semiconductors and electronic components had encouraged multinational firms to expand production capacity and related supply chains in Thailand.

Applications linked to the AI supply chain totalled 111 projects worth more than 1.2 trillion baht.

These covered data centres, cloud and data-hosting services, chip design, semiconductor manufacturing and testing, printed circuit boards, photonics products, power systems, AI servers and hard-disk drives.

Major investors seeking promotion included US semiconductor company Analog Devices, Taiwan's Delta Electronics and California-based storage-device maker Western Digital.

According to Mr Narit, rapid expansion in the AI and data-centre industries is boosting demand for servers, data-storage systems, high-speed communications equipment, power supplies and cooling technologies.

The trend is drawing manufacturers to Thailand while creating opportunities for local firms in component production, installation and maintenance services.

"This helps link data-centre investment with Thailand's electronics manufacturing base and generates income for businesses throughout the supply chain," he said.

The agriculture and food sector also posted strong growth, with investment applications rising 59% to 80.1 billion baht across 218 projects.

Applications covered projects involving modern food and beverage production, animal feed, processed starch, natural extracts, rubber products and packaging made from agricultural materials and waste.

Mr Narit said the trend aligns with the World Bank's view that digital services, advanced manufacturing and agriculture and food are among the sectors best positioned to drive Thailand's long-term growth and create quality jobs.

Energy and public utilities represented another important segment, recording 313 applications worth 59.8 billion baht.

The projects include renewable energy generation from solar, wind, biomass and biogas, as well as industrial estates and water-production facilities.

Other sectors attracting investment were logistics and services, with applications worth 51.8 billion baht, and automotive and parts manufacturing, worth 36.3 billion baht.

By region, the Central region attracted the largest investment value at 955.2 billion baht, followed by the Eastern region with 632.3 billion baht.

Together, the two areas accounted for 93% of all investment applications.

Foreign direct investment applications surged 62% to 1.55 trillion baht across 1,309 projects, reflecting the continued relocation of global supply chains.

Singapore led foreign investors with 1.16 trillion baht, followed by China, the UK, Japan and Taiwan.

During the January-September period, the BoI approved 1,951 projects worth 1.51 trillion baht.

The projects are expected to create more than 116,000 jobs, generate annual exports worth 1.96 trillion baht and use domestic materials and components valued at over 693 billion baht a year, Mr Narit said.