11/10/2025
UPDATE: 5 New Growth Engines Driving Thailand Toward a “New Economy”
BOI Secretary-General has analyzed 5 Global Investment-Shift Factors. ASEAN have been highlighted as a ‘Bright Spot’. 10 Thai Strengths have been unveiled to attract FDI to Become a Key Production Base in the Region
Mr. Narit Therdsteerasukdi, Secretary-General of the Board of Investment (BOI), delivered a keynote address at THE STANDARD ECONOMIC FORUM 2025on November 5, 2025.
He stated that over the past year, several major economic developments have taken place globally — including the U.S. tax measures, geopolitical tensions, conflicts between Thailand and Cambodia, and the enforcement of the global minimum tax, which many countries began implementing earlier this year.
These factors have prompted businesses to reconsider their strategies, adjust investment directions, and restructure global supply chains on a large scale.
There are five key factors shaping the future direction of global investment.
1. Geopolitical Tensions: The conflict between the United States and China has led to investment diversification and a major restructuring of global supply chains.
2. Disruptive Technologies: There has been a rapid expansion of investment, especially in AI and other emerging technologies.
3. Sustainability: Investors are seeking new sources of clean energy, and there is a growing global trend toward green energy investment.
4. Global Minimum Tax: The implementation of the global minimum tax has limited the use of traditional tax incentives to attract investment, leading governments to develop new tools to encourage investment.
5. Aging Society: As the working-age population declines, investors are looking for markets with a larger labor force.
While global FDI declined by 11% in 2024, FDI inflows into ASEAN increased by 8% over the past two years. To reduce risks, businesses have adopted the new “China Plus One” strategy. Many countries that currently have manufacturing bases in China and other markets are seeking new production hubs in ASEAN.
As a result, ASEAN has become a “Bright Spot” in the global investment landscape, attracting growing international attention. The pattern of global investment is changing and moving toward a “New Global Manufacturing Hub.”
“Amidst global volatility, ASEAN has emerged as a new global production base.
When looking at individual sectors, ASEAN demonstrates strong advantages in exports, logistics, production efficiency, and a combined labor force of around 700 million people.
The region also faces relatively low geopolitical risk.
Indonesia, Vietnam, and Thailand each have their own strengths—sometimes complementing one another and sometimes competing—so every country stands to benefit from this new wave of investment and can grow together.”
Meanwhile, Thailand's 10 competitive strengths serve as magnets for investment:
1. Infrastructure readiness
2. Highly skilled workforce
3. Strong supply chain
4. High-potential markets
5. Gateway to global markets
6. Readiness to go digital
7. Readiness to go green
8. Investment promotion policies
9. Competitive production costs
10. Livability and facilities for expatriates
Mr. Narit said, investment in Thailand continues to grow steadily, as evidenced by the increasing number of leading global companies establishing production bases in the country.
These include Infineon, Lumentum, Microchip, Foxconn Group companies, Garmin, Haier, Hisense, Homa, Sunwoda, and Chinese EV manufacturers such as CHANGAN and Mazda.
These investments align with the government’s key policy targets under six strategic industries:
1. Next-Generation Automotive:
Focused on the production of clean-energy vehicles such as electric vehicles (EVs) and the development of related components.
2. Smart Electronics and Semiconductors:
Covering the production of high-tech electronic components such as printed circuit boards (PCBs) and advanced semiconductor devices.
3. Digital and Artificial Intelligence (AI):
Aiming to develop digital skills among Thai talent and encourage SMEs to adopt digital technologies to enhance competitiveness.
4. Modern Agriculture and Future Food:
Supporting food technology (FoodTech) development and research into future foods that meet global market demand.
5. Biotechnology:
Building on local raw material strengths to add value through biotechnology, while promoting R&D collaboration between businesses and academic institutions in each region.
6. Clean Energy:
Thailand is among the most advanced ASEAN countries in clean energy readiness, creating opportunities to attract investment from major high-tech companies, both electricity producers and large-scale energy consumers.
“Over the past three years, new high-tech industries such as data centers, semiconductors, and advanced electronics have invested in Thailand in significant numbers.
Most of the country’s semiconductor production currently focuses on midstream and downstream processes, but Thailand aims to move upstream in the value chain.
Our strength lies in having a well-established electronics industry.
At the same time, we must create local champions so that Thai companies can actively participate in these future high-tech industries. Therefore, we must focus on development in multiple areas — especially on enhancing digital, engineering, and R&D skills among Thai talent, as well as supporting SMEs to take part in these high-technology sectors of the future.”
BOI will accelerate investment promotion in electric vehicle (EV) battery production and strengthen supply chain linkages to maximize the use of locally produced components.
In addition, the government plans to establish clean energy procurement mechanisms, such as Direct Power Purchase Agreements (Direct PPA) and Utility Green Tariff (UGT) schemes, to leverage Thailand’s strong foundation in clean energy — making it one of the few countries in the region capable of generating renewable power at such scale and reliability.
Furthermore, Thailand must also build upon and strengthen the agricultural base to elevate it to the future agricultural and food industry (Future Food), including the development of Bio-Tech so that Thailand becomes the world's Bio-Hub."
3 Key Investment Promotion Measures for the 'Quick Big Win' Future
1. Investment Acceleration Measure
• Accelerate over 70 stalled projects totaling 300 billion Baht.
• Create a new mechanism, "Thailand Fast Pass," to establish a fast track for unlocking investment conditions for strategically important projects.
2. High-Skilled Workforce Development Measure (100,000 People)
• Develop 100,000 high-skilled workers.
3. Competitiveness Enhancement Measure
• Measures 1 and 2 above will be announced tomorrow (November 6th).
Mr. Narit emphasized that Thailand's opportunity is arriving amid a severe storm.
How can Thailand create a New Growth Engine to seize that opportunity?
To achieve this, we must build a 5-Pillar Ecosystem as follows:
• New Industry: Establish a base for new industries within the country.
• New Technology: Support research and development of technology to increase value and production efficiency.
• New Talent: Develop the skills of Thai personnel and attract high-skilled personnel from abroad to support future industries.
• New Supply Chain: Connect leading manufacturers with Thai entrepreneurs to integrate them into the global supply chain.
• New Energy: Accelerate the development of clean energy mechanisms at competitive prices.
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