BOI target halved to 'normal' Bt700 bn

The Industry Ministry targets only Bt700 billion worth of projects applying for Board of Investment incentives this year - half of last year's amount - while emphasising value-added products and innovative technology businesses.

"Our target is normal because last year most investors started expanding in anticipation of the Asean Economic Community becoming effective in 2015. Many investors are interested in using Thailand as their production base, so there were more applications for privileges than usual," Industry Minister Prasert Boonchaisuk said yesterday.

The BOI will be less concerned about the volume of applications in the future.

"We will focus on value-added products, innovative products and business clusters," he said.

Foreign investors have confidence in expanding in Thailand because the political situation is still stable and the government is promoting foreign direct investment, Prasert said.

Last year saw new applications for 2,582 projects, up 29.7 per cent, which were worth Bt1.46 trillion, up 131 per cent. If all the projects are carried out, they will create 348,866 jobs.

Of the total projects, 790 were classified as service and infrastructure worth Bt607.8 billion, followed by 610 projects for materials, machinery and transport assembly worth Bt225.4 billion.

There were also 327 projects for chemicals, paper and plastics worth Bt234.8 billion; 347 projects for electronics and home appliances worth Bt167.6 billion; 331 projects for agriculture and agriculture products worth Bt94.8 billion; 75 projects for mining, ceramics and mine-based businesses worth Bt58.9 billion; and 102 light-industry projects worth Bt45 billion.