Thailand Reinforces Competitive Strategy in Dialogues with 30 International Investors
In a significant move to strengthen its economic competitiveness, Thailand's Acting Prime Minister Phumtham Wechayachai recently welcomed senior executives from 30 global companies at the "Confidence in Thailand's Future - Prime Minister's Dialogue with Global Investors" event held at the Government House in Bangkok.
These companies, representing diverse sectors, have made substantial investments in Thailand over the past two years. The government is taking steps to support these businesses by implementing mechanisms to comply with global rules and mitigate risks. For more information, please visit the BOI's website at www.boi.go.th.
One of the key initiatives announced is the preparation of the Direct Power Purchase Agreement (PPA) mechanism, which allows electricity consumers to purchase electricity directly from producers. Initially, 2,000 megawatts of clean energy will be provided to the data center sector.
Changan Auto Southeast Asia Vice President Wu Xiaokang announced plans to establish a regional adaptive engineering center in Thailand. This move will see significant investment in R&D, infrastructure, testing equipment, smart facilities, and advanced technologies. Changan Auto Southeast Asia is also actively increasing recruitment of Thai local talent to support its expanding operations.
Nestle Indochina Chairman and CEO Victor Seah announced a collaboration with MEA and PEA to implement the Utility Green Tariff (UGT1) program across six factories in Thailand. The UGT1 mechanism was launched by the Thai government to provide clean energy services with certification for renewable energy use.
The growth in foreign investment in Thailand in 2025 is particularly focused on strategic industries such as medical and beauty services, electric vehicles and renewable energy, cloud services and cybersecurity, and real estate targeting luxury and tourist-linked segments. The government has been actively promoting competitiveness through trade agreements, investment incentives, and regulatory reforms.
Key investment trends include the rapid expansion of digital and tech sectors, driven by cloud services, cybersecurity, and the application of AI and IoT, attracting foreign capital. Thailand’s pivot to renewable energy, including solar power and battery storage, plus incentives for EV manufacturing, present new opportunities for foreign investors, particularly Chinese investors. Foreign capital is surging in luxury and tourist-related real estate in popular destinations like Phuket, Pattaya, and Chiang Mai, fueled by infrastructure improvements and the demand from digital nomads and expatriates.
To enhance Thailand’s investment competitiveness, the government has increased investment promotion applications to the Board of Investment (BOI) by 139% year-on-year in H1 2025, with foreign direct investment (FDI) comprising 70% of this value (approx. USD 32.5 billion). Negotiations to expand market access through 17 existing trade agreements with 24 countries and ongoing talks with the EU, South Korea, Canada, aim to lower trade barriers and align tariff rates with regional peers, thus supporting export competitiveness.
Regulatory reform, digital transformation, and fostering public-private collaboration to boost economic resilience and innovation have been emphasized by government leaders and top investors. A focus on maintaining investor confidence amid challenges such as political uncertainty, tariff volatility, and corporate debt in specific industries is also a priority.
Foreign investors from China, Japan, Taiwan, Myanmar, Russia, and others have been particularly active, with China driving investments in target sectors like EV manufacturing and e-commerce, benefiting from trade agreements such as ASEAN-China FTA and RCEP. However, foreign capital inflows have been sensitive to ongoing trade negotiations with the U.S., especially regarding tariff relief, which influences investment decisions in petrochemicals, banking, and high-dividend stocks.
In addition, the Thai government is developing human resources in support of strategic industries, including a Sandbox project for the advanced semiconductors and electronics sector. Google's Director, Government Affairs and Public Policy, Su Ann Lim, stated Google's commitment to prioritizing the use of clean energy and playing a role in Thailand's renewable energy ecosystem. Infineon Technologies, Sony Technology, Changan Auto Southeast Asia, Nestle, and Google were among the senior executives who spoke during the dialogue.
In summary, Thailand’s foreign investment landscape in 2025 is characterized by targeted growth in medical, technology, green energy, and premium property sectors, supported by proactive government initiatives to strengthen competitiveness through trade liberalization, investor incentives, and regulatory reforms. This creates a favorable environment for continued FDI inflows amid evolving global economic and geopolitical conditions.
Companies in the field of finance, business, and technology are increasing their investments in Thailand, with a focus on strategic industries such as renewable energy, electric vehicles, cloud services, and cybersecurity. For instance, Changan Auto Southeast Asia is establishing a regional adaptive engineering center in Thailand, involving significant investment in R&D, infrastructure, and advanced technologies. Similarly, Nestle Indochina has announced a collaboration with local partners to implement the Utility Green Tariff program, which aims to provide clean energy services. These initiatives showcase Thailand's commitment to attract foreign capital and foster growth in these key sectors.
