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Government urged to focus on foreign direct investment

Government urged to focus on foreign direct investment

BANGKOK: Bangkok Bank (BBL) has called on the new government to emphasise investment support to accommodate an anticipated increase in foreign trade and investment flows across Southeast Asia over five years.

economics
By Bangkok Post

Friday 16 January 2026 12:06 PM


Mr Chartsiri advised the next government to prepare to support investment over the next five years. Photo: Bangkok Post

Mr Chartsiri advised the next government to prepare to support investment over the next five years. Photo: Bangkok Post

Speaking on Wednesday (Jan 14) after the bank’s seminar titled ‘New Asean: A Paradigm Shift’, BBL president Chartsiri Sophonpanich said the bank would like to see the new government pay greater attention to private investment and foreign direct investment (FDI) in preparation for rising international trade and investment flows into the region over the next five years, reports the Bangkok Post.

Amid intensifying geopolitical tensions, international trade and investment are increasingly seeking both security and business opportunities. Southeast Asia has emerged as a key destination for these flows, supported by its strong growth potential and large population base.

Thailand remains one of the region’s key FDI destinations, with a surge in applications submitted to the Board of Investment (BoI) for promotions over the past few years. This momentum is expected to continue in the coming years, noted the bank.

"With greater opportunities expected, the new government should prioritise attracting FDI and supporting domestic investment," said Mr Chartsiri. "If investment can be effectively encouraged, Thailand’s economic structure could transform in three to five years, helping to raise incomes, ease household debt and drive economic growth."

During the first nine months of 2025, BoI applications surged by 94% year-on-year to B1.37 trillion, driven by substantial investments in digital technology, electronics and electric vehicle sectors. FDI accounted for 80% of the total, led by investors from Singapore, China and Japan.

He said trade wars triggered a realignment of trade flows, with Chinese products increasingly shifting away from the US market towards Southeast Asia, while Thailand’s trade with the US expanded rapidly, rising by around 30% last year.

Beyond its large market and labour force, as well as a combined GDP of US$4.25trn, Southeast Asia benefits from a strategic location with strong connectivity to global shipping routes and supply chains, positioning the region as a base for logistics, manufacturing and export-oriented industries.

This positive outlook creates greater opportunities for Thai businesses to expand into regional markets, said Mr Chartsiri.

BBL said it is ready to support Thai companies of all sizes to capitalise on these opportunities, while assisting traditional Thai industries in transitioning towards modern industries aligned with global transformation trends.

He said the leading Thai bank for international banking is prepared to provide financial support to international businesses expanding across the region and investing in Thailand, particularly in the BoI’s five strategic sectors: bio-, circular and green; electronics and vehicle systems; semiconductors and advanced electronics; digital and artificial intelligence; and international business centres.