At the Thailand Focus 2025 event, a distinguished panel offered insights into Thailand’s competitiveness and investment outlook, blending policy perspectives with private sector experience.
The session featured Mr. Narit Therdsteerasukdi, Secretary-General, Thailand Board of Investment (BOI); Mr. Suphachai Chearavanont, Chief Executive Officer, Charoen Pokphand Group (CP Group); and Dr. Chawapol Jariyawiroj, President, Huawei Technologies (Thailand). Discussions centered on Thailand’s strengths, global trade tariffs, and strategies to sustain competitiveness.
Thailand’s Core Strengths and Investment Landscape
Mr. Narit highlighted record investment growth, with 2024 applications reaching a decade-high of THB 1 trillion (USD 34 billion), up 35% year-on-year, and foreign direct investment (FDI) rising 25%. Momentum continued into H1 2025, with applications surging 139% and foreign direct investment applications rose 126%. Key investors include Singapore, China, Hong Kong, Taiwan, and Japan, driven by electronics, digital, and automotive industries.
He outlined Thailand’s advantages: advanced infrastructure (deep sea ports, international airports, over 70 industrial estates, and strong digital capacity), market access through 17 FTAs and RCEP, and ongoing negotiations with the EU, Canada, and Korea. A robust supply chain in automotive, electronics, and chemicals supports growth in EVs, semiconductors, and advanced electronics. Green energy is also a differentiator, with new mechanisms like the Utility Green Tariff and direct PPAs giving data centers access to clean power. Each year, Thailand produces 100,000 STEM graduates, supported by BOI’s talent partnerships with universities. Government measures—ranging from tax incentives and a competitiveness fund to streamlined services and the Long-Term Resident visa—strengthen Thailand’s investment case. The country also ranks first in ASEAN for SDG performance and sixth globally as an expat destination.
From the private sector, Mr. Suphachai confirmed continued investments across CP Group’s businesses such as CP Axtra, CP ALL, True Corporation and CPF, led by growth opportunities rather than policy alone. He cited the company’s investment, alongside strong commitments from retail and agro-industrial units. He stressed Thailand’s growing appeal for data centers, crediting its geography, incentives, and openness, and predicted it will become a key AI hub for ASEAN.
The CEO also noted Thailand’s role as a top destination for Chinese manufacturing within ASEAN, its evolving telecom sector, and the EEC’s transformation into a hub for advanced industries.
Mr. Suphachai argued that policies, such as allowing 99-year land leases for foreigners, could accelerate investment, adding that Thailand’s livability remains a powerful advantage. Despite global turbulence, he expressed confidence that Thailand is “on the right track.”
Dr. Chawapol, representing Huawei’s history of nearly three-decade long in Thailand, underscored the country’s strategic location for building a technology hub serving regional and global industries. He pointed to surging demand for digital transformation across finance, manufacturing, wellness, and healthcare, and praised government initiatives such as the EEC, Thailand 4.0, and Cloud First. While acknowledging skill and infrastructure gaps, he highlighted Huawei’s commitment, including annual R&D spending of 20–25% of revenue and training 100,000 Thai IT professionals in five years.
Navigating Trade Tariffs and Supply Chain Diversification
On tariffs, Mr. Narit described the 19% reciprocal duties as a “long game,” with Thailand’s cost-effectiveness, supply chains, and clean energy readiness serving as differentiators. He added that negotiations with the U.S. seek to mitigate trans-shipment impacts while encouraging more localised production.
Mr. Suphachai said feed and poultry operations are less affected, as corn and wheat are mainly imported from South America and Eastern Europe—where a shift to U.S. imports could even lower costs. Still, he flagged risks for local soybean and corn growers, and suggested that farmers should be encouraged to shift towards planting higher-value plantations to increase their income, rather than only producing low-cost raw materials. By contrast, rice (especially jasmine rice) and fruit exports remain undersupplied relative to demand, particularly from China. He urged greater adoption of technology, professional management, and industrialisation in agriculture.
Overall, he viewed tariffs as a spur for Thailand to strengthen supply chains and transition into higher-value networks, keeping competitiveness intact despite similar tariff rates across ASEAN.
Dr. Chawapol echoed that disruptions create opportunities, stressing the need to modernise Thailand’s agricultural and tourism strengths with technology. He emphasised ecosystem-building through R&D, localisation, and talent development as critical for sustainable competitiveness.
Forward-Looking Strategies for Competitiveness
Mr. Narit highlighted BOI programs promoting automation, AI adoption, and localisation in EVs and electronics, plus investor linkage events to strengthen supply chains.
Mr. Suphachai outlined key priorities for Thailand to strengthen its competitiveness:
Talent Hub: Position Thailand as a hub for global talent while reskilling its workforce. This requires political stability and strong leadership.
Geopolitical Value and Connectivity: Capitalize on Thailand’s location at the heart of ASEAN by strengthening logistics, transport infrastructure, and regulatory frameworks to connect with China and regional neighbors. Mr. Suphachai pointed out that Thailand needs to remain “Neutral,” while raising its value at the same time.
Agricultural Transformation: With over 40% of the population reliant on agriculture, he stressed the need for structural transformation through cooperative models over the next 3–5 years.
Digital and Green Economy Leadership: Thailand must accelerate its push toward digitalization and sustainability to meet the expectations of global investors and become a leader in the green economy.
Lastly, Dr. Chawapol concluded that Thailand can position itself as a platform where global supply chains, regional trade, and digital innovation converge.
