Thailand Targets Advanced Green Manufacturing Hub Status
World Bank indices highlight significant growth potential as Bangkok looks to leverage existing manufacturing strength for green exports
- Thailand aims to become a major green manufacturing hub to ensure long-term economic competitiveness, leveraging a high potential for green exports identified by the World Bank.
- The strategy focuses on adapting existing industrial strengths in sectors like cooling systems, solar components, and automotive manufacturing, where many traditional parts can be repurposed for electric vehicles (EVs).
- Thailand is the world's leading exporter of air-conditioning units and Southeast Asia's dominant auto manufacturing center, providing a strong foundation for this green transition.
- Achieving this goal requires coordinated policies to align local products with international green standards, accelerate technology transfer, and prepare exporters for new global trade regulations.
World Bank indices highlight significant growth potential as Bangkok looks to leverage existing manufacturing strength for green exports.
Thailand possesses substantial latent capability to become a major regional hub for green manufacturing, provided the country accelerates its transition towards advanced eco-friendly industries, according to the Ministry of Commerce.
Nantapong Chiralerspong, director-general of the Trade Policy and Strategy Office (TPSO), stated that transitioning to Advanced Green Manufacturing is a strategic imperative to ensure long-term competitiveness as global trading partners tighten environmental standards and non-tariff measures.
Citing the World Bank’s Thailand Economic Monitor, Nantapong highlighted a significant gap between the country’s current green export performance and its future potential.
Thailand’s Green Complexity Index (GCI)—which evaluates its current capability to export complex green products efficiently—stands at 0.7. However, its Green Complexity Potential Index (GCP), measuring the ability to leverage existing industrial structures for future green exports, reaches 1.4.
"The gap between our current capability and latent potential shows that Thailand already possesses strong economic capital," Nantapong said. "Transitioning to advanced green manufacturing is no longer a branding choice—it is essential for economic survival."
The report identifies cooling systems, solar energy components, and electric vehicles (EVs) as sectors where Thailand holds strong existing advantages.
Thailand remains the world’s leading exporter of air-conditioning units (HS 841581), generating $1.13bn in exports in 2025 and accounting for 18.2% of global trade.
Key destinations include the United States, Australia, and Italy—markets with stringent environmental regulations. The ministry emphasised that adapting these supply chains to low-carbon refrigerants and advanced optics for solar panels requires upgrading existing technical expertise rather than building infrastructure from scratch.
In the automotive sector, while Thailand is not yet a primary hub for EV supply chains, its position as Southeast Asia's dominant manufacturing centre for internal combustion engine vehicles provides a major advantage.
Over half of traditional automotive components—including vehicle bodies, braking systems, and suspensions—can be repurposed for EV production.
Beyond manufacturing, TPSO noted growth opportunities in bioplastics and environmental chemicals, leveraging Thailand’s agricultural yields in sugarcane and cassava alongside its established petrochemical sector and Bio-Circular-Green (BCG) economic framework.
To translate this potential into commercial value, TPSO is calling for coordinated public and private sector policies. Priorities include aligning local product standards with international green benchmarks, accelerating technology transfer to boost domestic component sourcing, and preparing local exporters to navigate evolving global trade regulations.
