Friday, November 6, 2020

Value of business investment applications falls 15% this year

The total value of business investment applications fell 15 per cent in the first three quarters of 2020 despite a slight rise in the number of firms applying, the Board of Investment (BOI) said on Wednesday.

Foreign and local applications from January-September rose to 1,098, as targeted firms in the electrical and electronic (E&E), food, automotive and medical sectors continued to expand amid the Covid-19 crisis, the BOI reported. 

However, the total value of the applications fell 15 per cent from the year earlier, to Bt223.7 billion (US$7.2 billion), due to the smaller average size of projects amid the Covid-induced global decline in investment, the board added.

Targeted sectors accounted for 58 per cent of the total value of applications. E&E topped the ranking for domestic and foreign investment with 106 projects worth a total Bt37.6 billion, followed by agriculture and food processing (114 projects, Bt26.9 billion), and the automotive industry (63 projects, Bt20 billion).

Applications in the medical sector more than doubled to 65 projects, while their total value surged 75 per cent year-on-year to Bt14.7 billion to become the fourth ranked sector, the BOI said.

“Investment in our top targeted sectors remained strong, showing Thailand’s resilience despite the difficult global environment,” said BOI secretary-general Duangjai Asawachintachit. 

“The medical sector continued to show a strong performance as investors quickly adjusted to the Covid-19 situation and built upon Thailand’s medical and research capability.”

Of total applications, 47 per cent were new investments, while the remaining 53 per cent were to expand existing projects.

In terms of location, the three Eastern Economic Corridor (EEC) provinces – Chonburi, Chachoengsao and Rayong – attracted 313 projects worth a total Bt109.4 billion, or 49 per cent of all applications filed during the nine-month period.

The number of foreign direct investment application fell slightly to 657, compared to 665 a year earlier, with a total value of Bt118.5 billion, 29 per cent down on last year. Japan led the way with 139 projects worth bt37.5 billion, representing 32 per cent of total FDI applications value, followed by China (129 projects, Bt21.2 billion, and the Netherlands (62 projects, Bt17.5 billion). Singapore was fourth (76 projects, Bt12 billion), while Taiwan wrapped up the top five with 37 projects worth Bt9.5 billion.

FDI applications contributed 60 per cent of the total number of projects and 53 per cent of total investment value pledges during the January-September period, the BOI said.

No comments: