Thailand Employs Five Key Assets to Entice Foreign Capital Amidst US Import Taxes
The Thailand Board of Investment (BOI) is strategically focusing on promoting five key high-tech sectors, aiming to build high-tech industrial supply chains and transform Thailand's economy towards future industries. These sectors include the bio-circular-green (BCG) economy, electric vehicles (EVs), semiconductors and advanced electronics, digital and artificial intelligence technologies, and international business centers.
This strategic approach has resulted in a significant increase in investment applications, with a 139% year-on-year increase recorded during the first half of 2025. The digital sector, particularly data centers driven by global hyperscalers like AWS and Google, saw a 20-fold surge in investment, underscoring Thailand's role as a regional digital hub. Sustained investment has also been noted in the electrical and electronic appliances sector, including battery manufacturing and smart electronics.
BOI's strategy also emphasises sustainability and boosting local value creation in high-tech industries. Recent initiatives include promoting local content utilization specifically in the EV and electrical appliance industries, offering additional incentives to projects meeting local content thresholds. This approach aims to deepen the supply chain within Thailand and enhance global competitiveness.
The negotiation for a 19% US customs duty rate was successful, thanks to the efforts of "Team Thailand" - a public-private partnership led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira. This rate allows Thailand to remain competitive compared to other countries in the region.
Thailand's strong fundamentals, supply chain readiness, quality personnel, and supportive government measures make it a prominent regional investment base with high potential for development into new, high-tech industries. Major global investors like AWS and Google have already established hyperscale data centers in Thailand, leveraging the country's quality infrastructure, including industrial estates, logistics, ports, airports, and stable electricity with renewable energy potential.
The BOI is actively promoting five key sectors and offering investment incentives such as benefits from the BOI and Ministry of Finance, clean energy procurement mechanisms, and targeted support for EVs, semiconductors, batteries, and environmentally friendly industries. The BOI also offers Smart Visas, LTR Visas, and streamlined permits for foreign professionals to address skills that cannot be developed quickly enough.
Thailand maintains a strong base of engineers, technicians, and skilled labor, with the BOI collaborating with the Ministry of Higher Education to develop specialized courses in semiconductors, AI, IoT, automation, and logistics. The BOI views the 19% US tariffs as competitive and believes the resulting clarity encourages investors to proceed with their plans.
Thailand's investment promotion is strategically focused on high-tech industries, with strong clusters existing in the automotive, electronics, electrical appliances, petrochemicals, chemicals, machinery, and equipment industries, primarily concentrated in the eastern region. The country also boasts 17 signed free trade agreements with 24 countries, with additional FTAs under negotiation with the European Union, Canada, and South Korea.
Investors in target industries have expressed confidence in proceeding with Thailand investments, according to BOI Secretary-General Narit Therdsteerasukdi. The BOI's strategic focuses in promoting high-tech industries and attracting foreign capital include building robust infrastructure and supply chains, encouraging sustainability and increased local content in industry, and offering targeted incentives to attract and retain foreign investors.
- The Thailand Board of Investment (BOI) is focusing on promoting five key high-tech sectors, including the bio-circular-green (BCG) economy, electric vehicles (EVs), semiconductors and advanced electronics, digital and artificial intelligence technologies, and international business centers, to build high-tech industrial supply chains and transform Thailand's economy.
- Investment in the digital sector, particularly data centers driven by global hyperscalers like AWS and Google, has seen a 20-fold surge, indicating Thailand's growing role as a regional digital hub.
- BOI's strategy also focuses on sustainability and local value creation in high-tech industries, with initiatives like promoting local content utilization in EV and electrical appliance industries and offering additional incentives to projects meeting local content thresholds.
- The negotiation for a 19% US customs duty rate was successful, making Thailand competitive compared to other countries in the region.
- With strong fundamentals, supply chain readiness, quality personnel, and supportive government measures, Thailand is a prominent regional investment base, attracting major global investors like AWS and Google.
- The BOI is offering investment incentives such as benefits from the BOI and Ministry of Finance, clean energy procurement mechanisms, targeted support for EVs, semiconductors, batteries, and environmentally friendly industries, and providing Smart Visas, LTR Visas, and streamlined permits for foreign professionals.
