Investment applications sent to the Board of Investment (BoI) dropped by 42% year-on-year in the first five months to 300 billion baht, but the investment promotion agency says new investors are still interested in Thailand.
BoI figures show 515 projects worth 308 billion baht applied for investment privileges from January to May.
The number of projects submitted fell by 39% year-on-year from 848.
Of the applications, 260 projects worth 168 billion baht are expansions of existing investments, while 255 are new projects worth 140 billion.
But foreign direct investment declined by 10% year-on-year to 230 billion baht from 334 projects, said secretary-general Udom Wongviwatchai.
Investment from Japan, Thailand's top foreign investors, dipped slightly year-on-year to 168 projects worth 72.8 billion baht. Yet European investment soared 300% to 64.2 billion baht, while American investment jumped 570% to 41.2 billion. Investments from South Korea totalled 12.3 billion baht, up by 150% year-on-year, while projects from China surged 260% to 9.4 billion.
The automotive, auto-parts and machinery sectors stayed on top with 122 project applications worth 164 billion baht thanks to the second phase of the eco-car scheme.
Some 166 infrastructure projects worth 78.4 billion baht were submitted including power generation from natural gas, industrial and logistics zones, and aviation and biomass projects. Chemical, paper and plastic industries filed 42 applications worth 25 billion baht.
The private sector welcomed news the Industry Ministry was accelerating issuance of factory permits to 30 days from 45 days starting next month. But some private organisations have expressed concern, saying the speedier approvals might not allow time for environmental impact assessments.
"Environmental standards will remain strict to ensure every community's health is protected," said industry permanent secretary Witoon Simachokedee.