Thai industrial land sales increased by 182%

Thanks to supply chain shifts and the government's efforts to attract investment, Thai industrial land sales increased sharply by 182%.

This growth is recorded in the fiscal year lasting from October 1, 2022 to September 30, 2023. Accordingly, industrial land sales managed by the Industrial Estate Authority of Thailand (IEAT) during this period reached 5,693 rai (910.88 hectares), far exceeding the target of 2,500 rai (400 hectares). . In the last financial year, IEAT achieved revenue of 8.5 billion baht (230 million USD) and profit of 3.7 billion baht (100 million USD).

According to Veeris Ammarapala, Director of IEAT, in addition to corporations relocating factories, sales increased thanks to more investment in the Eastern Economic Corridor (EEC) and the long-term residence visa policy, granting 10 year stay period for foreigners. "Land sales in the EEC amounted to 4,724.8 rai (755.97 hectares) while the remaining 967.7 rai (154.83 hectares) were outside the EEC," he said.

An industrially growing area within the ECC. Photo: CNA

The EEC, including the three provinces of Chon Buri, Rayong and Chachoengsao, will become Thailand's high-tech industrial center with 12 industries including next-generation automobile manufacturing and smart electronics.

IEAT aims to sell 3,000 rai (480 hectares) of industrial land in fiscal 2024. EEC is expected to see the highest sales of 2,700 rai (432 hectares). IEAT currently operates 68 industrial parks nationwide as well as the Map Ta Phut deep-sea port in Rayong. These industrial parks have 4,828 factories, with a total cumulative investment of 10,800 billion baht (292 billion USD) and a total number of workers of 994,696.

The Thai Board of Investment (BOI) said that in the first half of the year, the country attracted 304 billion baht in foreign direct investment, an increase of 141% over the same period in 2022. China is the largest investor with 61 5 billion baht (1.67 billion USD), while Singapore and Japan poured 59 billion baht (1.6 billion USD) and 35.3 billion baht (956 million USD) respectively.

BOI said FDI attraction increased sharply thanks to capital inflows into the auto industry and related activities, with 80 investment projects worth 19.6 billion baht. Thailand is already a major automobile manufacturing center in the region and is aiming to become an electric vehicle production center in Southeast Asia.

For example, Thailand has offered generous incentives to electric vehicle manufacturers, such as a 24 billion baht ($0.7 billion) subsidy program for battery manufacturers, as well as a 40% cut. % tax on imported electric vehicles and a discount of 70,000 - 150,000 baht (1,900 - 4000 USD) for buyers.

Thanks to that, to date, China's leading electric vehicle manufacturers, including BYD, Great Wall Motor (GWM) and SAIC, have all established production lines in Thailand, due to their strategic position in the supply chain. the country's automobile subsidies and generous subsidies.