Thailand built or expanded 1,211 factories during the first half of fiscal 2023 with an investment value of 113 billion baht, generating more than 30,000 jobs, according to the Industry Ministry.
Part of the investment during October 2022 to March 2023 came from entrepreneurs in the bioplastic and electric vehicle (EV) industries, in line with the government policy to promote a green economy and eco-friendly cars, said acting Industry Minister Anucha Nakasai.
"The government launched a corporate tax deduction programme to encourage investment in bioplastic manufacturing," he said.
Investment in the bioplastic sector reached 19 billion baht.
The Industry and Finance ministries have been working together to promote more production of biodegradable plastic in Thailand. Their efforts aim to reduce plastic waste, which is harmful to the environment.
The Thai Bioplastics Industry Association said earlier this year Thailand is the world's second-largest producer of bioplastic products, serving growing demand overseas thanks to abundant raw materials to drive manufacturing.
Bioplastic manufacturing not only adds value to Thai agricultural products, but also supports global efforts to cut carbon dioxide emissions and is one option to deal with problems caused by single-use plastics.
The sector aligns with bio-economy development, which promotes the use of renewable resources as raw materials to produce energy, food and other value-added products.
In the EV sector, investment tallied more than 1.4 billion baht, said Mr Anucha.
The production of battery-powered cars is being promoted by the government, part of efforts to reduce carbon dioxide emissions.
Prime Minister Prayut Chan-o-cha vowed in 2021 at the 26th UN Climate Change Conference that Thailand would be more serious in addressing climate change and strive to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050.
During the first six months of fiscal 2023, the petrochemical industry made the biggest investment in terms of value at 22.6 billion baht, said Jullapong Thaveesri, director-general of the Department of Industrial Works.
He expects the investment will continue to grow and exceed 180 billion baht in the second half of the year.
