Thailand Leverages Five Core Strengths to Attract Foreign Investment Despite US Tariffs
BOI confident in competitive position after securing 19% US customs duty rate, down from 36%, as government targets high-tech industries
- Thailand is promoting five core strengths to attract foreign investment: quality infrastructure, integrated supply chains, a skilled workforce, government support, and extensive market access.
- Despite new 19% US tariffs, the country's investment board views the rate as competitive and believes the resulting clarity encourages investors to proceed with their plans.
- The investment promotion is strategically focused on developing high-tech sectors, including electric vehicles, semiconductors, advanced electronics, the bio-circular-green (BCG) economy, and digital/AI technology.
- To support its workforce, Thailand is developing specialized tech education programs and offering special visas to attract foreign professionals.
Thailand's Board of Investment (BOI) is promoting five core competitive advantages to attract foreign capital, expressing confidence that the country remains an attractive destination despite newly announced 19% US reciprocal tariffs.
The investment promotion agency is focusing on building high-tech industrial supply chains and transforming Thailand's economic structure toward future industries as it navigates the evolving global trade landscape.
BOI Secretary-General Narit Therdsteerasukdi said the successful negotiation by "Team Thailand" – a public-private partnership led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira – secured a 19% US customs duty rate on Thai goods, down from the initially proposed 36%.
"This rate allows Thailand to remain competitive compared to other countries in the region," Narit said, adding that investors in target industries have expressed confidence in proceeding with Thailand investments.
The BOI is actively promoting five key sectors: bio-circular-green (BCG) economy, electric vehicles, semiconductors and advanced electronics, digital and artificial intelligence technology, and international business centers.
Thailand's Five Investment Strengths:
Quality Infrastructure: The country offers robust industrial estates, logistics systems, deep-sea ports, international airports, and stable electricity supply with renewable energy potential. Major global investors like AWS and Google have established hyperscale data centers, while facilities for foreign investors include international schools and high-standard hospitals.
Integrated Supply Chains: Strong clusters exist in automotive, electronics, electrical appliances, petrochemicals, chemicals, machinery, and equipment industries, primarily concentrated in the eastern region to reduce costs and enhance efficiency.
Skilled Workforce: Thailand maintains a strong base of engineers, technicians, and skilled labor. The BOI collaborates with the Ministry of Higher Education to develop specialized courses in semiconductors, AI, IoT, automation, and logistics, targeting 280,000 high-tech workers by 2028. For skills that cannot be developed quickly enough, the agency offers Smart Visas, LTR Visas, and streamlined permits for foreign professionals.
Government Support: Investment incentives include BOI and Ministry of Finance benefits, clean energy procurement mechanisms, and targeted support for EVs, semiconductors, batteries, and environmentally friendly industries, along with supply chain linkage programs.
Market Access: Thailand's infrastructure and logistics provide regional market connectivity, supported by 17 signed free trade agreements with 24 countries. Additional FTAs are under negotiation with the European Union, Canada, and South Korea.
"The 19% tariff from the US has a positive impact on investment, and the clearer situation will help investors proceed with their investments in Thailand," Narit stated. "Given Thailand's strong fundamentals, supply chain readiness, and quality personnel, combined with supportive government measures, we are confident Thailand will remain a prominent regional investment base with high potential for development into new, high-tech industries."
