Nakhonratchasima Provincial Administration Budget for 2004
(Here)

Translated from provincial administration online sources.

Business Trends in NE Thailand for 2004

Translated from local press

The Nakhonratchasima Board of Investment has reported on investment activities in the northeast region of Thailand for the year 2003. The report states that there has been continual growth in investment, with 61 different projects receiving approval for investment promotion, a 36% increase over the same period in 2002. The investments totaled 10.081 billion (US) Baht, breaking through the targeted figure of 10 billion. This resulted in 18,559 hirings, even though overall investment figures were 37% less than those the year before. The reason for the drop was that during 2002 there were many large investment projects, but during 2003 the majority of investment funds were spread over SME investments that accounted for 35% more in number than the previous year.
Industries experiencing the largest investment over this last year (2003) were:
Electronics and electrical accessories with investment value of 3.08 billion Baht. There was almost a 200 % increase over the previous year in the number of such projects, and accounted for the most number of hirings in the northeast – 6,704. Mostly the work involved manufacture of components or equipment involved in the manufacture of electronic products, such as motors, switches, connectors, and transformers, etc. Most of these were in the SME category (investments not over 200 million Baht), or 64% of the total. This group of SMEs grew, an eight-fold increase over last year.

Large projects were scattered throughout Nakhonratchasima and Khon Kaen, for example, four Matsushita Electronics Company (newly established in Khon Kaen province) projects in Khon Kaen, with an investment of 2.113 billion Baht and 3,833 hirings. According to [stated] corporate policy, the customer base will be moved from Japan to Khon Kaen as the company views Thailand investment conditions as favorable, especially in regard to advantageous labor pool related to business operations.
Second in rank is the agriculture industry and agricultural products which investors expressed interest in - in this region. Sixteen such projects reviewed investment promotion approval, a 45% increase over the previous year. Investment totaled 2.378 billion Baht, resulting in 3,866 hirings. Projects included cattle raising and cattle products, finished foods, quality rice, tomato paste, processed flour, rubber sheets and pure alcohol. Forty four percent were set up in Nakhonratchasima, with next in size of investment being Ubolratchathani province.

Of the total investments, 75% were in the SME category representing a 100% increase over the previous year. The figures indicate business operators in the SME category have confidence to increasingly invest [in the region]. As for the northeast region, conditions in the agricultural section appear favorable, including weather, soil and in other aspects connected to agriculture. Further, there was also support in adding value to products, such as increasing quality, decrease in investment in communications where goods have to be sent elsewhere for quality analysis, decrease in problems associated with price controls for agricultural products.
Third in rank were service and public utilities sectors, with investment value of 2.041 billion Baht, more than a ten-fold increase over last year, and a four-fold increase in the number of projects over last year, resulting in 258 hirings. Interesting projects included in the area of electricity production, water vapors used with bunker fuels or equipment that is no longer used. In the northeast, this includes waste from tapioca factories, pig farms, paddy, and bagasse (crushed sugar cane), returned for the most efficient use. Investments in this area totaled 1.9 billion Baht, and projects were set up in Nakhonratchasima, Chaiyaphum, and Buriram.

Chemical industries – paper and plastic had a value of 977 million Baht, and resulted in 1,636 hirings. Projects involved production of cling film, ethyl alcohol, plastic components, and plastic fiber. All projects were in Nakhonratchasima and Khon Kaen.
Light industries had an investment value of 703 million Baht, resulting in 5,315 hirings, with 75% in looming operations. All were in the SME category. Most were set up in Chaiyaphum, Khon Kaen and Ubolratchathani, ranked in this order.
Finally, in the mining, ceramics and metals industry, one project originated, a facility for producing plaster casts for decorations/ornaments and for tooth casts, with an investment of 20 million Baht, 23 hirings, in Nakhonratchasima province.
Investment in northeast Thailand – Chaiyaphum and Khon Kaen – exceeds expectations.
Investments spread throughout other areas of the northeast over the past year in excess of expectations, attributed to government policies especially in BOI investment promotion, and up to an including basic provincial strategies. Regardless, the majority of investments were in the region’s larger provinces like Nakhonratchasima, Khon Kaen and Ubolratchathani.
The province that experienced the greatest growth was Chaiyaphum, with seven BOI approved projects, investment value of 1.835 billion Baht, resulting in 2,916 hirings. This was a six-fold increase over last year, and 57% were light industries. This coincided with the province’s primary investment strategies that call for the province being ranked as an electronics and electrical appliance industrial zone. Investments totaled 2 billion Baht and contributed to hirings in the area.