Bangkok Bank (BBL) expects sustained growth in foreign direct investment (FDI) into Thailand over the next few years, presenting significant opportunities for the Thai economy despite global uncertainties.
Speaking at the 2025 Asean Business Forum hosted by the bank on Thursday, BBL president Chartsiri Sophonpanich said Thailand's total investment applications through the Board of Investment surged by 35% in 2024 to reach a 10-year high of 1.14 trillion baht, driven by foreign investments in various sectors, including companies relocating operations to diversify their supply chains.
According to Mr Chartsiri, FDI is directed towards emerging growth sectors, particularly bio-based and green industries, electric vehicles, batteries and components, as well as international business centres, digital technologies, semiconductors, and advanced electronics.
Last year, applications for investment promotion in these industries accounted for around 4,000 projects.
"The positive trajectory of FDI is expected to persist in the coming years, transforming Thailand's technological and manufacturing capabilities over the next decade," he said.
Thailand ranks fifth in Southeast Asia in terms of inbound FDI, trailing Singapore, Indonesia, Vietnam and Malaysia. The region remains a critical destination for global FDI, with Asean connectivity further bolstering investment, trade and tourism across Southeast Asia.
On a regional scale, Mr Chartsiri said Asia's rapidly expanding middle class is driving demand for consumer products, services, education, healthcare and travel.
This demographic shift also fosters greater mobility, with people increasingly studying, working, and trading across borders.
"The growth of Southeast Asia's middle class is closely tied to urbanisation, fuelling major infrastructure developments in transport, energy and digital systems," he said.
"These advancements are reshaping the economic landscape by reducing costs and enhancing connectivity across economic zones, reinforcing the region's role as a vital component of the global supply chain."
Mr Chartsiri said geopolitical risks, particularly those arising from the US-China trade and tech wars, pose both challenges and opportunities for Thailand.
He said such dynamics would intensify competition and urged local businesses to adapt their operations to remain competitive in this evolving environment.
Kobsak Pootrakool, the bank's senior executive vice-president, said policies under US President-elect Donald Trump, particularly tariffs, are likely to cause relocation of manufacturing bases and supply chain adjustments worldwide.
These shifts affect exports, and China, India, South Korea and Taiwan have seen a recovery in their export sectors. This trend is expected to have a positive ripple effect on global and Thai exports, said Mr Kobsak.
BBL projects a strong year for Thai exports this year, supported by government stimulus measures.
The bank expects Thai GDP growth of 3%, signalling a steady improvement in the country's economic outlook.