Thailand’s Board of Investment (BOI) reported a significant surge in investment applications during the first quarter of 2025. The total value of these applications almost doubled, reaching 431.2 billion baht (USD 12.9 billion), marking a 97% increase compared to the same period last year. This growth was primarily fueled by large infrastructure projects and a remarkable fivefold increase in applications within the digital sector.
Key Takeaways
- Overall Growth: Investment promotion applications reached 431.2 billion baht, nearly double the amount from the first quarter of 2024.
- Digital Sector Surge: Applications in the digital sector increased fivefold, reaching 94.75 billion baht, driven by foreign investments in data center projects.
- Total Project Applications: A total of 822 project applications were filed, with 618 involving foreign investors, a 20% increase from the previous year.
- Infrastructure Investment: Bangkok Expressway and Metro PCL invested 109.2 billion baht in the Orange Line, a 35.9 km metro line connecting Bangkok’s western and eastern suburbs.
- Foreign Direct Investment (FDI): FDI applications totaled 267.7 billion baht, a 62% increase from the previous year.
- Top FDI Sources:
- Hong Kong: 135.16 billion baht (50% of all FDI pledges)
- Mainland China: 47.3 billion baht
- Singapore: 38.1 billion baht
- Japan: 25.1 billion baht
- Taiwan: 4.76 billion baht
Domestic and foreign investors filed a total of 822 project applications during the January-March period, a 20% increase from the first quarter of 2024. As many as 618 of those applications involved foreign investors.
Applications in the infrastructure sector included Bangkok Expressway and Metro PCL’s 109.2 billion baht investment in the construction of the 35.9 kilometer-long Orange Line which will connect Bangkok’s western and eastern suburbs, that will greatly facilitate travel in the city.
The digital sector saw the value of applications soar over five times to 94.75 billion baht, from 17.42 billion baht a year earlier, boosted by a combined investment value of 94.23 billion baht in five data center projects.
In other target industries, a total of 122 applications were filed for investments in the electrical and electronic (E&E) sector representing a combined value of 87.81 billion baht, while the automotive and parts sector saw 72 projects worth a combined 23.5 billion baht.
The petrochemicals and chemicals sector saw 81 applications worth 13.94 billion baht, the agriculture and food processing sector saw 61 projects worth a combined 12.72 billion baht, and the tourism infrastructure sector saw 10 projects worth a combined 9.26 billion baht.
Hong Kong Leads as the Top Source of Foreign Direct Investment
Foreign direct investment (FDI) applications in the January-March period amounted to a combined investment value of 267.7 billion baht, an increase of 62% from a year earlier.
Hong Kong-based companies came on top of the ranking of FDI sources for the quarter with a combined investment value of 135.16 billion baht, accounting for 50% of all FDI pledges in the period, including 72.7 billion baht in the digital sector alone.
Mainland China came in second with 47.3 billion baht, mostly invested in the metal, electronics and automotive industries, followed by Singapore with 38.1 billion baht, focused on projects in the E&E and digital sectors.
Japan ranked fourth with 25.1 billion baht, mostly investments in the E&E and automotive sectors, followed in fifth position by investments from Taiwan-based companies with 4.76 billion baht, mostly in the E&E and automotive parts sectors.
Last year, Thailand’s total applications for investment promotion soared 35% in value to a 10-year high of 1.14 trillion baht. The digital sector, which includes data centers and cloud services, topped in 2024 for the first time the sectorial rankings with a combined 243.3 billion baht in pledged investment, and was followed by the E&E sector with 231.7 billion baht.
