French and German businesses are showing an interest in investing in the electric vehicle (EV) industry in Thailand, following a recent investment promotion roadshow held in the two European nations, says the Board of Investment (BoI).
"We received a good response from French and German investors who want to expand their production bases and outsource companies to manufacture products to serve the Asian market," said Wirat Tatsaringkansakul, deputy secretary-general of the BoI.
Besides EVs, investors in these countries are also interested in seeking investment opportunities in EV parts, electronics as well as medical and healthcare businesses, he said.
The roadshow, organised to encourage foreign businesses to invest in Thailand, was held in France and Germany during June 18-23.
In France, BoI executives met officials from Business France, a state agency providing advice to French companies planning to invest overseas and foreign firms planning to do business in France.
Most members of Business France are small and medium-sized enterprises in various industries, but notably auto parts.
Between Jan 3 and June 21, French companies submitted six investment proposals worth 2.9 billion baht to the BoI to apply for investment privileges, according to the BoI.
The Thai government is boosting foreign investment, with the EV sector becoming a key industry attracting interest from many prospective investors, thanks to a policy to promote local EV production.
The cabinet approved a package of incentives last year including tax cuts and subsidies to promote EV consumption and production during the period 2022-2023.
The subsidies range from 70,000 baht to 150,000 baht depending on the type and model of vehicle, while there will be lower excise tax and import duties on completely knocked down and completely built up units.
German businesses are also key investors in Thailand's automotive industry.
During the first half of this year, German investors submitted 12 investment projects worth more than 5.9 billion baht to the BoI to apply for investment privileges, mostly in the automotive and machinery sectors.
The BoI is holding its latest roadshow in the Chinese cities of Chongqing and Chengdu starting on Tuesday and continuing through July 1 to attract investment, especially in the EV sector.
