International
support

In more than 90 countries

Thailand

Key data Change country

Invest

Foreign Direct Investment

Foreign direct investment is an important element of Thailand's economic development, and the country is one of the major FDI destinations in its region. According to UNCTAD's World Investment Report 2024, FDI inflows stood at USD 4.5 billion in 2023, down by 59% compared to the USD 11 billion recorded one year earlier. At the end of the same period, the stock of inward FDI reached USD 290.8 billion. As per the Thailand Board of Investment (BOI) figures, applications for investment promotion in 2024 surged 35% to THB 1.14 trillion (USD 33 billion), the highest since 2014, driven by major FDI projects in data centres, cloud services, semiconductors, and advanced electronics. The digital sector led with 150 projects worth THB 243.3 billion, including investments from Google (Alphabet), NextDC, CtrlS Datacenters, and GDS IDC Services. The electronics sector followed with 407 projects totalling THB 231.7 billion, featuring investments from Foxsemicon and FT1 Corporation. Automotive ranked third (THB 102.4 billion), followed by agriculture & food (THB 87.6 billion) and petrochemicals & chemicals (THB 49.1 billion). FDI accounted for 73% of total investment applications in 2024, rising 25% from the previous year.
Singapore led with 305 projects worth THB 357.5 billion (43% of total FDI), mainly in digital services and electronics, driven by Chinese and U.S. firms using it as a regional base. Mainland China followed with 810 projects totalling THB 174.6 billion, focused on PCB, automotive, and metal manufacturing. Hong Kong ranked third (177 projects, THB 82.3 billion) with investments in wafer fabs, data centres, PCB, chemicals, and plastics. Taiwan contributed 126 projects (THB 50 billion) in advanced semiconductor equipment, PCB, and smart electronics. Japan placed fifth with 271 projects worth THB 49.1 billion, investing in automotive, motorcycle manufacturing, aircraft tyres, digital cameras, and air conditioners.

Thailand has been a consistent recipient of foreign investment for some time, and its geostrategic position as the heart of the ASEAN free trade bloc, with free trade access also to China and India, has made it a hub for many Chinese investors. This has manifested itself primarily in the drive to digital economies and is building Thailand up both as a connectivity hub and as a key node for Asia in new tech. Plenty of money is being both raised and made via Chinese investments into various Thai-based initiatives in crypto, fintech, blockchain, and AI, as well as health care, including medical tourism. This, coupled with extensive infrastructure connectivity plans uniting Thailand to ASEAN, other export markets, and the development of numerous free trade zones on outlying islands is seeing the country take on a highly competitive global role for foreign investment into the South Asian region (ASEAN Briefing). Thailand's strategic location in Southeast Asia, coupled with its relatively well-developed infrastructure and skilled workforce, makes it an appealing destination for FDI. The country offers various incentives through the Board of Investment (BOI) to attract investment, including tax breaks and streamlined bureaucratic procedures. However, political instability, bureaucratic red tape, corruption, labour issues, and infrastructure constraints pose challenges for investors. Several Thai statutes impose limitations on foreign ownership in specific sectors, notably in industries such as banking, insurance, and telecommunications. The Foreign Business Act (FBA) delineates the specific business activities reserved for Thai nationals, stipulating that foreign investment in these sectors must not exceed 50% of share capital, except under special permissions or exemptions. Thailand ranks 41st among the 133 economies on the Global Innovation Index 2024 and 87th out of 184 countries on the latest Index of Economic Freedom.

 
 
Foreign Direct Investment 202220232024
FDI Inward Flow (million USD) 11,7058,05310,580
FDI Stock (million USD) 308,753313,219336,521
Number of Greenfield Investments* 94177202
Value of Greenfield Investments (million USD) 15,5026,9779,519

Source: UNCTAD - Latest available data.

Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.

Country Comparison For the Protection of Investors Thailand East Asia & Pacific United States Germany
Index of Transaction Transparency* 10.0 5.9 7.0 5.0
Index of Manager’s Responsibility** 7.0 5.2 9.0 5.0
Index of Shareholders’ Power*** 9.0 6.7 9.0 5.0

Source: Doing Business - Latest available data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.

+

What to consider if you invest in Thailand

Strong Points

Advantages for FDI:

  • The Thai economy's strengths lie primarily in its diversity: agriculture (40% of world production of natural rubber but also rice, sugarcane, and fruits), industry (automotive, food processing electronics ), services and tourism are highly developed. 
  • The workforce is inexpensive, skilled and above all diversified. 
  • The country's location in the heart of Asia makes it a gateway to Southeast Asia and the Greater Mekong Basin region, where new emerging markets have great economic potential. 
  • Government policy is generally in favour of investment and encourages free trade: there are, for example, no restrictions in the manufacturing sector or export conditions, just as there are many government agencies helping foreign and domestic investors.
Weak Points

Weaknesses in the Thai economy:

  • Lack of infrastructure and innovation
  • Political uncertainty
  • Strong collusion between economic and political circles and conflicts of interest
  • High household debt
Government Measures to Motivate or Restrict FDI
Thailand, the second largest economy in the Association of Southeast Asian Nations (ASEAN), is an upper middle-income country with pro-investment policies. The Thai Board of Investment (BOI) grants both tax and non-tax incentives to qualifying investment projects in Thailand, available equally to both Thai and foreign investors.  The incentives include a corporate income tax holiday, machinery and raw materials import duty incentives, and other non-tax incentives.

  • Eight years of corporate income tax exemption (with or without a maximum cap),
  • Five years of corporate income tax exemption,
  • Three years of corporate income tax exemption.

Other incentives also include:

  • Withholding tax exemption for dividend distribution during the tax holiday.
  • 100% foreign ownership in certain businesses reserved under the FBA.
  • Customs duty exemption or reduction for imported raw materials and machinery.
  • Land ownership for foreign companies.
  • Withdrawing or remitting money abroad in foreign currency.
  • Visa and work permit privileges for expatriates.

Other incentives are available for expenditure in these sectors: R&D in technology and innovation, intellectual property acquisition/licensing fees for commercialising technology developed in Thailand, advanced technology training, development of local suppliers with Thai shareholder(s) holding at least 51% of the total shares, product and packaging designs in Thailand, both in-house and outsourced.

Additional area-based incentives for corporate income tax exemptions are provided to qualified investors in the specific areas that fall under the following categories:

  • Decentralisation (activities based in the 20 provinces with the lowest per capita income).
  • Industrial area development (for qualified projects based in industrial estates).
  • Science and technology parks.
  • Eastern Economic Corridor areas.
  • Four provinces on the Southern border and the four districts in Songkhla.

In support of its “Thailand 4.0” strategy, the government offers incentives for investments in twelve targeted industries: next-generation automotive; intelligent electronics; advanced agriculture and biotechnology; food processing; tourism; advanced robotics and automation; digital technology; integrated aviation; medical hub and total healthcare services; biofuels/biochemical; defense manufacturing; and human resource development.

The Thai government in 2019 passed new laws and regulations on cybersecurity and personal data protection that have raised concerns given to Thai authorities regarding confidential and sensitive information, introducing new uncertainties in the technology sector.

+

Investment Opportunities

The Key Sectors of the National Economy
Automotive, agriculture (rubber, seafood, rice, cane sugar, fruit), electronic components, computers, organic chemistry, tourism.
High Potential Sectors
All sectors related to rail, road, airport and electrical infrastructure are offering great business opportunities for foreign investors.
Privatization Programmes
None.
Tenders, Projects and Public Procurement
Tenders Info, Tenders in Thailand
 Asian Development Bank, Procurement Plans in Asia
 DgMarket, Tenders Worldwide
 

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors
Thailand retains state-owned enterprises in energy (PTT), railways (SRT) and telecoms (TOT).
Sectors in Decline
Labor-intensive sectors, such as food and textiles.
 

+