Which Foreign Direct Investment (FDI) is Most Significant in Thailand?

Which Foreign Direct Investment (FDI) is Most Significant in Thailand?

              Which Foreign Direct Investment is Most Significant in Thailand? This intriguing question reflects various aspects. If we define “Foreign Direct Investment (FDI)” as the amount of investment from foreign investors in businesses in Thailand, it may include investments in the form of holding shares of at least 10%, inter-company loans, reinvestment of profits, debt securities, and trade credits among affiliated businesses, etc. TerraBKK found interesting information from the Bank of Thailand with the following details:

FDI from ASEAN has been the highest in Thailand for two consecutive years

              Over the past decade, the overall Foreign Direct Investment (FDI) entering Thailand has been quite volatile each year, with both positive and negative figures. The “positive figures” indicate that there was an “increase in investment” that year, whether through share investments, retained earnings reinvested, or loans from foreign affiliates (recorded as inflow for the country) being higher than “decreases in investment” such as reducing shareholding, withdrawing investments, or repaying loans to foreign affiliates (recorded as outflow for the country). Meanwhile, “negative figures” indicate that during that period, “increases in investment” were lower than “decreases in investment”. In the last two years, ASEAN has recorded the highest FDI entering Thailand, with over 61.9 billion baht in 2017, despite a decrease from the previous year (2016 = 71.5 billion baht).

15 Countries with the Highest Average FDI into Thailand Over the Past 10 Years

            Each year, several countries have fluctuating FDI figures entering Thailand, depending on whether those countries are increasing or decreasing their investments. To provide a neutral comparison of the data, TerraBKK used the average per country over the past 10 years and found that Japan has been the top investor in Thailand for nearly 10 consecutive years, being the only country with annual investments exceeding 100 billion baht. Following Japan is the United States, which had a peak investment of 122.30 billion baht in 2012 but has since declined and dropped out of the Top 10 in some years. The third position is held by Singapore, which has shown significant growth in the past 2-3 years, while China, a country many have high expectations for, ranks sixth with an average investment of around 11.7-19.8 billion baht per year. Additionally, there are less familiar countries like Mauritius, an island nation off the coast of Africa, and the British Virgin Islands, a group of over 50 islands in the Caribbean, also ranking among those investing in Thailand.

                Recently, Foreign Direct Investment (FDI) entering Thailand in the first nine months of 2018 (9M/61) showed that Japan invested over 135.3 billion baht in Thailand, followed by Singapore with 43.1 billion baht and Hong Kong with 41.4 billion baht. ---TerraBKK

Article by: TerraBKK Investment Tips
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