New factory registrations drop by 1.7%

The number of new factories registering with the Industrial Works Department during the first six months of this year dropped by 1.7% from the same period of last year to 2,042 factories, with combined investment of 126 billion baht.

Director-general Mongkol Pruekwatana attributed the decline to investor concerns over the global and domestic economy. But he expressed confidence that investment will rebound with the government’s infrastructure projects and those planned under the much-touted Eastern Economic Corridor (EEC) scheme.

New factories that registered in the first half were primarily involved in electronics and electrical parts, food and food processing, automotive parts, plastics and wooden products.

During the period, 445 factories registered for expansion, with combined investment of 92.1 billion baht, said Mr Mongkol. Most expansion investment flowed into factories involved in metal products, rubber, food and food processing.

New investment in S-curve industries is intended to be the core of EEC project totalling 52 billion baht, now spanning 575 factories.

The S-cure investment covers 10 targeted industries: next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemical; digital; and medical services.

As of June, the number of employees working in these industries was 32,243, up from 24,593 at the end of last year.

Mr Mongkol said the government’s new labour regulation law is expected to hurt some sectors, especially labour-intensive industries such as garments, textiles and footwear.

The government recently used Section 44 of the interim charter to give operators a 180-day reprieve to adjust their employees to the new labour regime.