Thailand Ranks in Global Top 5 for Investment Relocation, Government Unveils "STI" Strategy to Attract Capital
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Deputy Prime Minister and Finance Minister Eknit Nitithanprapas revealed that studies by the World Bank and the International Monetary Fund, or IMF, place Thailand among the top five countries, or Top 5 Global Trends, capturing the attention of foreign investors and riding the wave of the new era of investment relocation. Foreign investors view Thailand as a safe haven for setting up production bases amid global conflict and polarization, and its political neutrality allows its trade economy to engage with countries around the world without restrictions. This is reflected in the number of investment promotion applications to the BOI this year, which continued to expand from last year to 1.47 trillion baht, or growth of 40%. The government aims to drive many target industries to relocate production to Thailand, such as artificial intelligence, or AI, optical data transmission equipment, including the world's number one and number two manufacturers, printed circuit boards, or PCB, chips, and future mobility, such as electric vehicles, or EVs, with eight factories already establishing production bases in Thailand. Eknit said the government's key task is not to let this opportunity pass but to convert investment applications into actual investment, while issuing rules to ensure benefits flow to Thai people and Thai businesses through mandatory technology transfer and workforce skills development. At the same time, the government is driving the country through the "STI" strategy, consisting of Stabilize Today, Transition Now, and Invest for Tomorrow. The ratio of public debt to gross domestic product, or GDP, remains within the 60–70% range, which is still strong compared with developed countries such as the United States at 100% and Japan at 200%.