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BBL: Investments Expected to Continue Flowing into Thailand

BBL: Investments Expected to Continue Flowing into Thailand

Bangkok Bank (BBL) anticipates continued growth in foreign direct investment (FDI) in Thailand over the coming years, offering significant opportunities for the Thai economy despite global uncertainties.

At the 2025 ASEAN Business Forum hosted by the bank on Thursday, BBL president Chartsiri Sophonpanich stated that total investment applications submitted to the Board of Investment surged by 35% in 2024, reaching a decade-high of 1.14 trillion baht. This surge is attributed to foreign investments across various sectors, particularly as companies relocate operations to diversify their supply chains.

Mr. Chartsiri noted that FDI is increasingly directed towards burgeoning growth sectors, especially in bio-based and green industries, electric vehicles, batteries and components, as well as international business centers, digital technologies, semiconductors, and advanced electronics. Last year alone, applications for investment promotion in these industries accounted for approximately 4,000 projects.

“The positive trend in FDI is expected to continue in the coming years, enhancing Thailand’s technological and manufacturing capabilities over the next decade,” he remarked.

Thailand stands fifth in Southeast Asia in terms of inbound FDI, following Singapore, Indonesia, Vietnam, and Malaysia. The region remains a crucial destination for global FDI, with ASEAN connectivity further enhancing investment, trade, and tourism throughout Southeast Asia.

On a broader scale, Mr. Chartsiri observed that Asia’s swiftly expanding middle class is driving demand for consumer goods, services, education, healthcare, and travel. This demographic evolution also promotes greater mobility, with individuals increasingly studying, working, and trading across borders.

“The rise of Southeast Asia’s middle class is closely associated with urbanization, leading to significant infrastructure development in transport, energy, and digital systems,” he noted. “These advancements are transforming the economic landscape by reducing costs and improving connectivity across economic zones, reinforcing the region’s importance in the global supply chain.”

Mr. Chartsiri pointed out that geopolitical risks, particularly those stemming from the US-China trade and technology conflicts, present both challenges and opportunities for Thailand. He urged local businesses to adapt their operations to remain competitive in this changing environment.

Kobsak Pootrakool, the bank’s senior executive vice president, indicated that policies under US President-elect Donald Trump, especially concerning tariffs, are likely to prompt the relocation of manufacturing bases and adjustments to supply chains worldwide. These developments are impacting exports, with China, India, South Korea, and Taiwan experiencing a rebound in their export sectors. Mr. Kobsak expects this trend to positively influence both global and Thai exports.

BBL forecasts a robust year for Thai exports supported by government stimulus measures and projects a Thai GDP growth rate of 3%, indicating a steady improvement in the country’s economic outlook.

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