(Bangkok, 25th) The Thailand Development Research Institute (TDRI) has warned that Thailand is at risk of losing foreign direct investment (FDI), especially in high-tech upstream industries, and has called on the government to implement reforms in areas such as wages, skills training, R&D, and regulatory relaxation.
According to data from Vietnam's Ministry of Planning and Investment tracked by the Department of International Trade Promotion (DITP) of Thailand, Vietnam's foreign direct investment continued to show strong growth in the first half of 2025.
From January to June this year, Vietnam attracted $21.51 billion in FDI, up 32.6% from the same period last year. This includes 1,988 new projects (totaling $9.29 billion), 826 capital increase projects (totaling $8.95 billion, double last year), and 1,708 transactions in which foreign investors bought stakes in Vietnamese companies (totaling $3.28 billion, up 73.6%).
The industries attracting the most funding were manufacturing and fisheries ($12.0 billion), followed by real estate ($5.17 billion), professional, scientific and technical activities ($1.18 billion), and water supply and waste management ($902.9 million).
In terms of FDI source countries, Singapore ranked first with $2.41 billion, followed by China ($2.13 billion), Sweden ($1 billion), Japan ($832.3 million), and Taiwan ($725.8 million). Thailand ranked 14th among 92 investing countries, with only $59.4 million in new project investments.
Meanwhile, the number of investment applications to Thailand’s Board of Investment (BOI) has also risen sharply during the same period. In the first half of 2025, a total of 1,369 foreign projects applied for BOI incentives, with a total investment of 737.6 billion baht, up 132% year-on-year.
Of the 1,880 projects applied for in total, foreign projects accounted for 73%, representing 70% of the total investment amount of 1.05 trillion baht.
By number of projects, the leading industries were: metals and materials (285 projects, 21%), machinery and automotive (269 projects, 20%), and electrical and electronics (255 projects, 19%).
In terms of investment value, the digital industry led with 410 billion baht (56%), followed by electronics and electrical appliances (125.6 billion baht, 17%) and metals and materials (59.9 billion baht, 8%).
Nonarit Bisonyabut, senior researcher at TDRI, pointed out that the direction of global competition for foreign investment is becoming increasingly clear, with many countries undertaking evidence-based policies, such as effective civil service reforms, to drive rapid future economic development.
However, despite being aware of its own structural problems and the academic community presenting reform recommendations, Thailand is often stalled in actual implementation, hampering the country’s economic potential.
He criticized that most current Thai government projects focus on short-term populist cash handouts or lack sustainable economic initiatives, such as marijuana liberalization, casino and alcohol regulation relaxations, all of which bring serious social and health risks. Even large-scale projects, such as the Land Bridge project, have been proven in several studies to lack economic viability.
According to data from Vietnam's Ministry of Planning and Investment tracked by the Department of International Trade Promotion (DITP) of Thailand, Vietnam's foreign direct investment continued to show strong growth in the first half of 2025.
From January to June this year, Vietnam attracted $21.51 billion in FDI, up 32.6% from the same period last year. This includes 1,988 new projects (totaling $9.29 billion), 826 capital increase projects (totaling $8.95 billion, double last year), and 1,708 transactions in which foreign investors bought stakes in Vietnamese companies (totaling $3.28 billion, up 73.6%).
The industries attracting the most funding were manufacturing and fisheries ($12.0 billion), followed by real estate ($5.17 billion), professional, scientific and technical activities ($1.18 billion), and water supply and waste management ($902.9 million).
In terms of FDI source countries, Singapore ranked first with $2.41 billion, followed by China ($2.13 billion), Sweden ($1 billion), Japan ($832.3 million), and Taiwan ($725.8 million). Thailand ranked 14th among 92 investing countries, with only $59.4 million in new project investments.
Meanwhile, the number of investment applications to Thailand’s Board of Investment (BOI) has also risen sharply during the same period. In the first half of 2025, a total of 1,369 foreign projects applied for BOI incentives, with a total investment of 737.6 billion baht, up 132% year-on-year.
Of the 1,880 projects applied for in total, foreign projects accounted for 73%, representing 70% of the total investment amount of 1.05 trillion baht.
By number of projects, the leading industries were: metals and materials (285 projects, 21%), machinery and automotive (269 projects, 20%), and electrical and electronics (255 projects, 19%).
In terms of investment value, the digital industry led with 410 billion baht (56%), followed by electronics and electrical appliances (125.6 billion baht, 17%) and metals and materials (59.9 billion baht, 8%).
Nonarit Bisonyabut, senior researcher at TDRI, pointed out that the direction of global competition for foreign investment is becoming increasingly clear, with many countries undertaking evidence-based policies, such as effective civil service reforms, to drive rapid future economic development.
However, despite being aware of its own structural problems and the academic community presenting reform recommendations, Thailand is often stalled in actual implementation, hampering the country’s economic potential.
He criticized that most current Thai government projects focus on short-term populist cash handouts or lack sustainable economic initiatives, such as marijuana liberalization, casino and alcohol regulation relaxations, all of which bring serious social and health risks. Even large-scale projects, such as the Land Bridge project, have been proven in several studies to lack economic viability.