Investment Trends in Thailand in 2025: The Increase in Foreign Investment Reflecting Thailand's Potential to Attract Global Investors

In the face of a rapidly evolving global economy, Thailand has demonstrated a clear commitment to becoming a leading investment hub in the region. With its robust strategic advantages, ongoing infrastructure advancements and attractive investment support initiatives, the Thai government is diligently working to position the country as a premier destination for global investors.

The Director-General of the Department of Business Development, Ministry of Commerce, recently announced a notable surge in foreign investment, with 181 permits issued under the Foreign Business Act B.E. 2542 (1999) in the first two months of 2025. This marks a significant 68% increase compared to the same period last year, reflecting growing investor confidence in Thailand’s economic prospects and its continued recovery.

The investment landscape comprises 41 applications for Foreign Business Licenses (FBL) and 140 applications for Foreign Business Certificates (FBC), as well as those under treaties or international agreements. The most prominent foreign investors in Thailand come from leading economies such as Japan, China, Singapore, the United States and Hong Kong, engaging in the following business activities:

1. Japan: With the highest investment rate at 21% and a total investment of 13,676 million baht, Japanese companies primarily focus on raw material sourcing, management solutions and Original Equipment Manufacturing (OEM).
2. China: Representing 13% of investments with a total of 5,113 million baht, Chinese companies concentrate on raw material procurement, customs clearance within free trade zones, factory rentals and OEM.
3. Singapore: Contributing 13% of investments with a total of 4,490 million baht, Singaporean enterprises invest primarily in modern distribution center services, tire research and development, data center operations and OEM.
4. United States: Accounting for 11% of investments with a total of 1,372 million baht, American investors are active in retail, data support services for securities trading on the Stock Exchange of Thailand (SET) and OEM.
5. Hong Kong: Comprising 9% of investments with a total of 1,587 million baht, Hong Kong businesses focus on engineering and technical services, modern distribution center operations, electric vehicle (EV) charging station infrastructure and OEM.

The Eastern Economic Corridor (EEC) has emerged as a key magnet for foreign capital, attracting 57 foreign investment projects, marking a remarkable 63% increase and representing 31% of total foreign investments. The total investment value within the EEC reached an impressive 17,546 million baht, accounting for 50% of all foreign investments during this period.

The EEC attracts investment across diverse sectors including retail, plastic mold manufacturing, refrigeration components, parts for tire manufacturing machinery, factory rental services, customs clearance services within free trade zones and OEM of various products such as automotive parts, metal stampings and molds. Key investors in the EEC include Japan, China, Singapore and other countries.

Thailand’s robust investment appeal is driven by a competitive environment supported by the Thailand Board of Investment (BOI). The BOI offers a comprehensive range of incentives including:

• Corporate Income Tax (CIT) exemptions (up to 13+ years)
• Import duty exemptions on key machinery and materials
• Deductions for operational and R&D costs

Non-tax benefits include conditional foreign land ownership, streamlined visa and work permit processes and convenient one-stop services. These incentives are strategically designed to attract investments in high-tech, value-added and other key industries. Additionally, projects located in designated zones such as the EEC are eligible for enhanced benefits.

In conclusion, the significant rise in foreign investment in early 2025, particularly within the dynamic EEC, highlights Thailand’s growing prominence as a leading investment destination in Asia. Fueled by investor confidence, strategic advantages and proactive government policies, Thailand is reinforcing its position as a key hub for international capital and a vital player in the regional economic landscape.