BANGKOK – Thailand, once rocked by years of coups and court-ordered dismissals of prime ministers, is seeing a surge in foreign investment as political stability and policy continuity return, according to Vice-Finance Minister Santitarn Sathirathai.
Board of Investment data show inward investment rose about 30 per cent in the second quarter after increasing more than 20 per cent in the first, Santitarn said.
BOI-backed projects now account for roughly 30 per cent of total investment in Thailand.
Santitarn, who worked at Credit Suisse from 2010 to 2018, rising to head its emerging Asia economics team, said conversations with multinational companies, investors and credit-rating firms over the past four months have shown a marked shift in perception of one of South-east Asia’s largest economies.
“I don’t remember the last time that we got this much interest internationally,” Santitarn said in an interview with Bloomberg News on Sept 14.
The last comparable period, he said, was during his years at Credit Suisse, when Thailand routinely “popped up really high” in conversations about Asian investment.
Today, investors increasingly describe Thailand as “better than I expected,” he said.
At home, the February re-election of conservative Prime Minister Anutin Charnvirakul has given investors greater confidence in the government’s direction and ability to execute.
Abroad, trade tensions, the Iran War and ongoing US-China rivalry are pushing companies to diversify supply chains and put a greater premium on stability.
That shift is playing to some of Thailand’s longstanding strengths.
While other economies grapple with surging prices, currency volatility and higher interest rates, Thailand has relatively low inflation, strong external finances and accommodative monetary policy.
The baht’s 5.3 per cent decline in 2026 is less than that of Indonesia’s rupiah or the Philippine peso, though Santitarn said the currency’s recent weakening could support Thailand’s economy and competitiveness.
Stocks have also been gaining.
“Macro stability, which normally may be something quite boring, now is something important that people cannot take for granted,” Santitarn said. “All of a sudden you have policy continuity. You have macro stability, which has become more scarce globally.”
Santitarn and Finance Minister Ekniti Nitithanprapas want to lift total investment to 30 per cent of gross domestic product from about 22 per cent to 23 per cent, where it has stagnated for years.
This year, Thailand has greenlit multiple projects in a variety of sectors from the likes of Nestle SA, Japan’s Datasection Inc, Doosan Electro-Materials Co, Taiwan Union Technology Co and Fulltech Fiber Glass Corp.
Stability test
Santitarn acknowledged that renewed protests and political tensions could test the country’s new-found stability.
Anutin’s two predecessors were both dismissed by the country’s Constitutional Court, and the country has seen two coups this century.
But Santitarn said the government is seeking to insulate its economic agenda from political swings by setting priorities jointly with businesses, allowing them to endure even if the government changes.
“Once you set these directions together with the private sector, even if the government changed, the private sector is still the same,” he said, citing priorities including quality tourism, future mobility and the digital economy.
Thailand doesn’t necessarily have to beat faster-growing neighbours such as Vietnam for every investment.
Companies increasingly want production spread across multiple countries rather than concentrated in the cheapest or fastest-growing market, he said.
“You don’t want to put all the eggs in one basket,” Santitarn said. “You still want a diversification play within Asean too. And I think that’s where Thailand looks interesting.”
The challenge is turning that renewed attention into investment and ultimately faster economic growth.
Thailand has struggled for years with economic growth of around 2 per cent, a fraction of the blistering pace of Vietnam.
Investment applications through the Board of Investment surged to a record in 2025 and are on track to surpass that in 2026.
The government is now shifting its focus from pledges to projects on the ground, tracking investment realisation and working with companies to resolve bottlenecks involving land, water, infrastructure and permits.
With private businesses accounting for roughly three-quarters of investment, the government is seeking to use public infrastructure to crowd in private capital.
Officials are also changing how they measure success, with the BOI putting greater emphasis on whether investments create skilled jobs, develop Thai suppliers, transfer technology and support research.
The aim is to capture more of the benefits from investment flowing into artificial intelligence, data centres, electric vehicles, health and clean energy while upgrading Thailand’s established strengths in manufacturing, food and tourism.
Santitarn likens Thailand’s traditional growth engines to ageing trains that have served the economy well but need upgrading.
The country needs to board new high-speed trains led by AI, the digital economy, health and the green transition.
“We’ve been missing trains here and there,” he said, referring to years of disappointing growth. “This is it. This is a chance. The trains are here.” BLOOMBERG
