Amid Thailand's slowing economic growth, the government has launched the Reinvent Thailand policy to restructure the country and attract foreign investment. But what opportunities and risks lie ahead for Thailand?
Giorgio Gamba, CEO and Managing Director of HSBC Thailand's Business Banking Group, stated that over the past 3-4 years, foreign investors have increasingly invested in Thailand. This is reflected in the country's rising foreign direct investment (FDI), particularly in electronics, digital infrastructure, semiconductors, and other sectors, driven by Thailand's strengths in location, logistics, infrastructure, and skilled labor base.
A closer look at the first nine months of 2026 reveals 1,309 foreign investment promotion applications totaling 1,550.784 billion baht, a 62% increase from the same period last year. The top three investing countries are Singapore, China, and the United Kingdom.
Despite high foreign investment, a key question is how much of this capital will contribute to Thailand's long-term economic development. Giorgio told Thairath Money that the Thai government has implemented measures to ensure a higher proportion of raw materials and local content are used domestically, such as in the electric vehicle (EV) industry, which recently made headlines. Amid the expansion of digital infrastructure like Data Centers, the government is expected to support investments that promote sustainable economic growth.
He also highlighted Thailand's prominent industries aligned with energy transition trends, food processing, and agriculture. The "Thai Kitchen, World Kitchen" concept remains a strong selling point, extending to the animal feed industry. Thailand benefits from abundant raw materials, production capacity, and global distribution networks, underscoring food security — a concern gaining worldwide attention.
Additionally, Thailand is on the right path with policies promoting key industries. Large investors typically assess country-specific strengths and challenges, making it crucial for the government to continue implementing initiatives that build investor confidence.
With ongoing investment growth in Thailand, capable Thai companies are also ready to expand internationally beyond ASEAN. A survey of large firms in 26 major markets worldwide found Thai companies among the top in readiness to invest abroad, including in Turkey and China. A key driver is Thailand’s effective application of AI in business, which enhances capabilities and global competitiveness.
Overall, risk factors for Thai companies investing overseas include policy uncertainties, geopolitical risks such as the Russia-Ukraine war, and shifts in global trade dynamics influenced by former President Donald Trump’s policies, which could reshape the global investment landscape.
Furthermore, development is needed to address emerging challenges, especially AI, balancing benefits with potential risks like cybersecurity threats, which have been prominent recently. HSBC has prioritized cybersecurity for years and continues to enhance client protection.
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