UOB Thailand is dedicated to assisting major local corporations in their efforts to expand into Southeast Asia in order to tap into the significant growth potential of regional economies, while also investing in domestic digital technology.
According to UOB’s 2024 business outlook study, international expansion is a primary focus for Thai businesses, with approximately 90% planning to grow their operations in the next three years. Key targets for this growth include Southeast Asia, particularly Vietnam, as well as mainland China.
In 2022, Thailand emerged as Vietnam’s top trading partner in the region, with bilateral trade surpassing US$20 billion.
Vira-anong Chiranakhorn Phutrakul, deputy chief executive and country head of wholesale banking at UOB Thailand, emphasized that Vietnam is an attractive destination for outbound investments from Thai corporations. The country’s robust economic growth, large population, lower labor costs, and favorable regulatory environment—including free trade agreements—make it appealing to Thai investors.
However, she noted that Thai businesses face several challenges when expanding internationally, such as a lack of in-house talent, limited access to overseas customers, and inadequate legal, regulatory, and compliance support. To tackle these issues, UOB’s Foreign Direct Investment Advisory (FDIA) units across Southeast Asia offer comprehensive guidance to help clients achieve efficient and effective market entry, drawing on the bank’s regional expertise.
Founded in 2011, the Singapore-based UOB Group’s FDIA unit has assisted over 4,200 foreign companies in their cross-border expansion efforts. In Thailand, the unit has supported more than 370 companies, facilitating over $1.6 billion in projected foreign direct investment (FDI) and creating more than 18,000 jobs since 2019.
In addition to their outbound expansion, Thai corporate customers are increasingly investing in domestic digital technologies, such as data centers, artificial intelligence (AI), and cloud solutions. According to Ms. Vira-anong, these investments are essential for developing infrastructure and enhancing the digital transformation needed to improve business efficiency.
Moreover, she pointed out that inbound foreign investment in Thailand, particularly in the automotive and electronics sectors, is showing a positive trend, with significant interest from Chinese, Taiwanese, and South Korean investors. The electric vehicle (EV) sector is a major focus for FDI in Thailand.
“While there has been a slowdown in new car sales this year for both EVs and internal combustion engine vehicles due to economic circumstances, EV sales are anticipated to continue growing in the long term, in alignment with government policy,” Ms. Vira-anong stated.
The Thai government aims to boost EV sales to 30% of total new car sales by 2030, with EVs accounting for 15% of all car sales in 2023.
However, the growth of EV sales has slowed this year due to economic challenges and increased competition within the sector.
