Thailand banks on foreign investment to power economic surge
Bangkok Bank remains bullish on a surge in foreign direct investment (FDI) into Thailand, anticipating it will turbocharge the nation’s economy in the coming years despite global uncertainties.
At the 2025 ASEAN Business Forum helmed by the bank last Thursday, Bangkok Bank President Chartsiri Sophonpanich unveiled striking figures: Thailand’s investment applications soared by 35% in 2024, hitting a decade peak of 1.14 trillion baht.
The soaring numbers are driven by foreign firms setting up shop and diversifying their supply chains.
Sophisticated sectors are stealing the spotlight, as FDI pours into bio-based and green industries, electric vehicles and component manufacturing, digital tech, and semiconductors. Investment in these cutting-edge industries comprised around 4,000 project applications last year, said Chartsiri.
“The positive trajectory of FDI is expected to persist in the coming years, transforming Thailand’s technological and manufacturing capabilities over the next decade.”
Thailand is currently Southeast Asia’s fifth-largest recipient of FDI, trailing Singapore, Indonesia, Vietnam, and Malaysia. However, ASEAN’s allure as a global FDI beacon remains robust, thanks to interconnectedness fostering investment, trade, and tourism.
Regionally, the burgeoning middle class in Asia is fuelling demand for consumer goods, services, and more. Urbanisation is propelling infrastructure expansion in transport, energy, and digital systems, reshaping the region’s economic terrain by slashing costs and boosting connectivity, Chartsiri said.
“The growth of Southeast Asia’s middle class is closely tied to urbanisation, fuelling major infrastructure developments in transport, energy, and digital systems.
“These advancements enhance connectivity across economic zones, reinforcing the region’s role as a vital component of the global supply chain.”
On the geopolitical front, tensions like the US-China trade tiff present both obstacles and openings for Thailand. Chartsiri underscored that such pressures ramp up competition, urging local businesses to adapt swiftly or risk being left behind.
Contributing to the discussion, Bangkok Bank’s Senior Executive Vice-President Kobsak Pootrakool pointed to policies under US President-elect Donald Trump, suggesting his tariff strategies may shift manufacturing bases and rejig global supply chains.
This rebalancing act is already buoying exports in China, India, South Korea, and Taiwan, expected to similarly uplift Thai exports, reported Bangkok Bank.
The bank is upbeat about a stellar year for Thailand’s export market, buoyed by government stimuli, and forecasts GDP growth at a healthy 3%. It seems the Land of Smiles might have the last laugh as it rides a wave of prosperity.
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