Private investment is expected to be vital in propelling the Thai economy in the latter half this year, while the trade war is expected to have a slight effect on Thai exports, says Deputy Prime Minister Somkid Jatusripitak.
"The roadshows in Britain, France and Hong Kong showed that people in these countries have already accepted the Thai government in term of politics, while foreign investors there see high potential for investment in Thailand as a gateway to Asean," he said. "They are also interested in the Eastern Economic Corridor (EEC).
"If the government can maintain this economic momentum, it will enhance foreign investor confidence, increasing investment greatly in the second half this year."
As of May 21, the National Economic and Social Development Board (NESDB) projected private investment in Thailand to grow by 3.9% this year, up from 3.7% in its previous projection on Feb 19. In the first quarter this year, private investment grew by 3.1%.
Duangjai Asawachintachit, secretary-general of the Board of Investment (BoI), said the investment climate for foreigners has improved greatly based on the response during the roadshows in Britain, France and Hong Kong. Investors also showed their interest in investment in the 10 targeted industries of the EEC.
"There was very good feedback from foreign investors, and the BoI is confident that applications this year will reach our target of 720 billion baht, up from 640 billion last year," she said.
The BoI reported that applications in the first five months this year increased by 34% from the same period last year.
Mr Somkid expects the US-China trade war to have a slight effect on Thai exports this year. Export growth was 9% last year and 11.5% in the first five months this year.
He also sees the tourism sector maintaining its contribution to the Thai economy in the latter half of the year.
Foreign visitors to Thailand reached 35 million last year and generated 1.95 trillion baht, with tourism revenue accounting for 15-20% of GDP during the past two years. Foreign visitors are expected to reach 37 million this year and generate 2.23 trillion baht in income.
The government has authorised state agencies to speed up disbursement of the fiscal budget for the final three months of fiscal 2018, Mr Somkid said.
The NESDB has projected public investment to grow by 8.6% this year.
