Stability crucial for FDI: Minister

Foreign direct investment (FDI) has slowed since last year because of the global economic crisis and internal political chaos.

The Board of Investment (BoI) said it had recorded net applications worth Bt137 billion in the first four months of the year, down 10 per cent from Bt152 billion in the same period a year ago. The number of applications dropped by 29 per cent, from 412 projects to 294.

"Foreign investors have started to look for opportunities to expand their investment, as their orders are recovering gradually. Thailand, of course, is one of the attractive destinations, thanks to its hard-sell tax incentives and good infrastructure," Charnchai told the press yesterday.

He said factors affecting FDI during the rest of the year would be fluctuations in oil prices, government policy and the extent of growth in trading partners such as Japan, the US, Europe and Asia.

The BOI expects more investment applications from firms in services and infrastructure, automotive and auto parts, electronic and electrical appliances and textiles, he added.

In his roadshow in India next week, Charnchai will lead Thai businessmen to explore opportunities, particularly in automotive and auto parts, agricultural machinery, fertilisers and chemicals. The industry minister is scheduled to meet executives from 20 firms, including Tata Motors, Deepak and Birla Group.