Investment activity in Thailand is anticipated to accelerate this year, following a remarkable 35% increase in applications for investment incentives last year, amounting to 1.14 trillion baht—the highest level since 2014. This growth was driven primarily by significant foreign direct investment (FDI) projects in data centers and cloud services, according to the Board of Investment (BoI).
For the first time in 2024, the digital sector emerged as the leading investment area, with 150 projects pledging a total investment of 243 billion baht. Notable initiatives included proposals for substantial data centers from major technology and cloud service firms like Google (Alphabet) from the US and Australia’s NextDC.
Following the digital sector, the electronics and electrical appliances industry ranked second with project values exceeding 231 billion baht. The automotive sector contributed 102 billion baht, while the agriculture and food sector saw investments of 87.6 billion baht, and the petrochemicals and chemicals sector accounted for 49.1 billion baht.
“Last year’s strong investor response to our initiative to position Thailand as a secure and neutral hub for significant digital and smart electronics projects was impressive,” stated Narit Therdsteerasukdi, secretary-general of the BoI. “We anticipate this trend will gain even more traction in 2025, especially with the establishment of Thailand’s Semiconductor Board and the growing need for companies to manage risks amid the current geopolitical landscape.”
Mr. Narit noted that the BoI plans to continue organizing roadshows in key FDI source markets—including China, the US, Japan, and Europe—to promote its initiatives and connect with potential investors.
From January to December 2024, the total number of investment promotion applications surged by 40%, rising from 2,235 projects in the same period of 2023 to 3,137 projects. FDI accounted for 73% of the overall application value in 2024, reflecting a 25% increase from the previous year.
Singapore led the FDI rankings, contributing 305 projects primarily in digital services and electronics manufacturing, amounting to 357 billion baht, or 43% of total FDI applications. China ranked second with over 174 billion baht in investments, mainly in printed circuit boards and the automotive industry. Hong Kong, Taiwan, and Japan followed, with investments of 82.3 billion baht, 50 billion baht, and 49.1 billion baht, respectively.
The BoI is currently in talks with the Finance Ministry regarding the implications of the newly implemented Top-Up Tax on large multinational enterprises, which will affect fewer than 1,000 companies. This Top-Up Tax, effective since January 1, is designed to ensure that these large multinationals pay a minimum level of corporate income tax, typically aligned with the global minimum tax rate of 15%.
