{"id":19688,"date":"2020-07-24T17:57:00","date_gmt":"2020-07-24T09:57:00","guid":{"rendered":"https:\/\/www.prnasia.com\/story\/archive\/3072808_AE72808_0"},"modified":"2026-01-09T16:16:27","modified_gmt":"2026-01-09T08:16:27","slug":"the-increasing-investments-in-thailands-food-sector-reflects-the-confidence-in-thailand-despite-covid-19-outbreak-boi","status":"publish","type":"post","link":"https:\/\/iqiglobal.com\/blog\/the-increasing-investments-in-thailands-food-sector-reflects-the-confidence-in-thailand-despite-covid-19-outbreak-boi\/","title":{"rendered":"The Increasing Investments in Thailand’s Food Sector Reflects the Confidence in Thailand Despite COVID-19 Outbreak: BOI"},"content":{"rendered":"\n

BANGKOK<\/span>, July 24, 2020<\/span> \/PRNewswire\/ — From January 2019<\/span> to June 2020<\/span>, international and local investors have filed 116 investment promotion applications for food processing and drinks manufacturing projects in Thailand<\/span>, representing a total value of 18.8 billion baht<\/span> (ca. 600 million US dollars<\/span>), the Thailand<\/span> Board of Investment (BOI) states.<\/p>\n

\"“Food<\/a>
“Food experts at Thai Union’s Global Innovation Center rely on consumer insights and science to develop new products and processes.”<\/span> <\/div>\n

In the first half of this year alone, some 5.84 billion baht<\/span> worth of investment applications were filed for the sector, despite the impact of COVID-19 on business, thus demonstrating Thai and international food companies’ confidence in Thailand’s<\/span> resilient, innovation-focused food sector. <\/p>\n

These new investments cover the manufacturing of products including seasonings, plant-based proteins, semi and ready-to-eat food, frozen meats and fruits, processed salmon, cricket powder, healthy drinks, UHT yogurt, etc.<\/p>\n

Thailand<\/span>, with a population of almost 70 million, is Southeast Asia’s<\/span> second largest economy and is one of the fortunate few countries in the world that can produce far more food than it consumes — including the world’s most sought-after staple, rice. The country is also at the center of the ASEAN economic community, a trade grouping of 650 million consumers.<\/p>\n

Also known as the “Kitchen of the World,” Thailand’s<\/span> food sector is backed by its geographical location, rich natural resources, a top-quality local workforce, supportive investment-focused government policies, and a reputation for quality and product safety. <\/p>\n

The exquisite taste of Thai gastronomy is well known to international consumers. Thai specialties, such as aromatic Thai curries, stir-fries and fiery tom yam soups, are devoured hungrily in tens of thousands of Thai restaurants around the globe.<\/p>\n

Thanks to Thailand’s<\/span> effective management of the COVID-19 crisis, the country’s food factories remain open and food supply chains intact. And even as economies around the world ground to a halt, international demand for many Thai food products actually increased.<\/p>\n

In May, Thailand’s<\/span> agricultural and agro-industrial exports grew by 2.5 percent despite overall merchandise shipments falling due to severe disruptions in the global economy. Frozen and processed fruit and vegetable exports jumped by 83 percent. <\/p>\n

Overall, the proportion of food exports to total shipments from Thailand<\/span> jumped from 16 to 22 percent — a level that will likely be sustained in a post-COVID world, according to Pimchanok Vonkorpon, director-general of the Commerce Ministry’s trade policy and strategy office. <\/p>\n

“Food will undoubtedly be the star product of Thailand<\/span> in the years to come,” Pimchanok said. <\/p>\n

Success stories in Thailand’s<\/span> food sector comprise leading global names as well as local champions.<\/p>\n

Thai Union Group, today a leading seafood producer and owner of such iconic international brands as Chicken of the Sea and John West<\/span>, started four decades ago in 1977 with the takeover of a fish processing factory. Thai Union, which supplies one in five cans of tuna sold in the world and has annual revenues exceeding $4 billion<\/span>, saw its sales rise by 6 percent in the first quarter of 2020.<\/p>\n

“We believe in the future of Thailand<\/span> and the future of the food industry in Thailand<\/span>. We also believe in the opportunities in the world market and that’s why we are confident to make investments, especially in innovation and sustainability,” Thai Union President Thiraphong Chansiri<\/span> said in an interview. <\/p>\n

Ajinomoto, a company with operations in 24 countries, opened its first factory outside of Japan<\/span> in Thailand<\/span> in 1960 to make monosodium glutamate and was the first foreign investor to receive Thai government support. Today, Ajinomoto operates 11 factories in Thailand<\/span> employing 7,000 and has branched out into the manufacture of instant noodles, amino acid-based products for athletes, canned coffee, processed and frozen food, sold in both local and international markets.<\/p>\n

Other multinational food companies with major investments in Thailand<\/span> include Nestle of Switzerland<\/span>, Cargill, Kellogg’s and McCormick of the U.S. and Yamamori of Japan<\/span>.<\/p>\n

Thailand’s<\/span> 10,000 food processing companies stand out as reliable suppliers of safe and plentiful food. Thailand<\/span> is the world’s number 1 exporter of canned tuna, canned pineapple, sweet corn, coconut milk, cassava, and durian. Thai exports rank 2nd in the world in rice and sugar and among the top 5 in chicken and shrimp. Although not a predominantly Muslim nation, it is the 9th largest exporter of halal products. It is also the 11th biggest global supplier of ready-to-eat meals.<\/p>\n

Food industry revenues account for more than 20 percent of Thailand’s<\/span> GDP and last year the value of food exports totalled $33 billion<\/span>.<\/p>\n

Under the government’s “Thailand<\/span> 4.0″ strategy to become the innovation hub of Asia<\/span>, high-tech food processing is one of the key industries the government has selected to promote. The BOI is offering a suite of incentives to investors in this sector, including exemption of corporate income tax for up to 8 years and so-called smart visas that enable investors and key employees to stay in the country for up to four years.<\/p>\n

Photo – https:\/\/photos.prnasia.com\/prnh\/20200724\/2866890-1?lang=0<\/a> <\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

BANGKOK, July 24, 2020 \/PRNewswire\/ — From January 2019 to June 2020, international and local investors have filed 116 investment promotion applications for food processing and drinks manufacturing projects in Thailand, representing a total value of 18.8 billion baht (ca. 600 million US dollars), the Thailand Board of Investment (BOI) states. “Food experts at Thai…<\/p>\n","protected":false},"author":92,"featured_media":19689,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","postBodyCss":"","postBodyMargin":[],"postBodyPadding":[],"postBodyBackground":{"backgroundType":"classic","gradient":""},"footnotes":""},"categories":[220,469],"tags":[],"class_list":["post-19688","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","category-th"],"yoast_head":"\nThe Increasing Investments in Thailand's Food Sector Reflects the Confidence in Thailand Despite COVID-19 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