Thailand sees sharp increase in foreign investment – ​​what is behind it?

Foreign investment in Thailand has increased by a whole 68% in the first two months of 2025 compared to the same period last year. Among the largest investors are Japan, China, Singapore, the United States and Hong Kong. The total investment volume increased by 8,7 billion baht, representing a 33% increase in capital flows into the country.

Why are investments increasing?

There are several factors behind the sharp increase in foreign investment in Thailand:

1. Improved business climate – The government has introduced tax incentives and simplified rules for foreign companies, making it more attractive to establish itself in the country.
2. Increased demand for semiconductors and technology – With Thailand's focus on AI and semiconductor production, several technology companies have begun investing in the region.
3. Strategic position in Asia – Thailand is a hub for trade and manufacturing in Southeast Asia, making the country attractive for logistics and production.
4. Stable political environment – Despite some uncertainties in the region, Thailand has remained a relatively stable economy with predictable business conditions.

Which industries are growing the fastest?

• Technology and semiconductors – Driven by AI development and investments in chip manufacturing.
• Green energy and sustainability – More companies are investing in solar and wind power projects in Thailand.
• Tourism and hospitality – International hotel chains and travel companies are seeing a strong recovery after the pandemic.
• E-commerce logistics – More companies are establishing warehouses and distribution centers in Thailand to handle growing online commerce in Southeast Asia.

How does this affect Thailand and the region?

The increased foreign presence creates more jobs, increases export opportunities and strengthens Thailand's position as one of Asia's leading economies. At the same time, it increases competition for local companies, which can lead to both innovation and challenges.

What happens next?

The government is planning further reforms to attract even more investment, especially in technology and green energy. If the trend continues, Thailand could become one of the fastest growing economies in Southeast Asia in the coming years.

The question now is: Can Thailand maintain its momentum and attract even more global companies?

Text: The editorial staff

Image license: geralt, Pixabay, original image