Photo Credit: Bangkok Post
Bank of Thailand is urging the government to focus on the quality of foreign direct investment (FDI) rather than simply increasing investment volumes, aiming to deliver stronger long-term economic benefits for Thailand.
According to the central bank’s latest Monetary Policy Report, Thailand attracted a record US$18.8 billion in FDI in 2025, driven largely by rapid growth in sectors such as data centres, electronics, and technology services.
Despite the growth, Thailand still trails regional competitors including Singapore, Vietnam, and Malaysia in attracting foreign investment. The report also raised concerns that many new investments generate limited domestic value, as industries such as electronics and electric vehicles continue to rely heavily on imported components.
The report noted a shift in investor composition, with Japan’s share of FDI declining significantly while Chinese investment has increased, particularly in emerging EV industries.
The central bank warned that Thailand remains focused mainly on lower-value activities such as assembly and packaging, while higher-value sectors including design, research and development, and raw material production remain underdeveloped.
To improve long-term competitiveness, the Bank of Thailand said the country should prioritise workforce development, strengthen local SMEs, and build stronger links between foreign investors and domestic supply chains to create more sustainable and higher-value economic growth.