Thailand targets 30% investment share to push GDP growth beyond 3%

The government has established a new national investment development subcommittee under the Joint Public and Private Sector Consultative Committee, chaired by Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas.

The subcommittee will promote investment in new economic activities, develop infrastructure, remove investment barriers and monitor the implementation of government measures.

Its work will focus on three objectives: increasing economic growth to more than 3%, lifting Thailand into the world’s 20 most competitive economies and raising total investment to almost 30% of GDP.

Thailand’s investment-to-GDP ratio stood at 22.9% in 2026, comprising public investment of 6.1% and private investment of 16.8%.

Danucha Pichayanan, secretary-general of the National Economic and Social Development Council, said restoring total investment to 30% of GDP would be important for Thailand’s transition to a high-income country and would bring the ratio back towards its level before the 1997 Asian financial crisis.

The government also aims to achieve high-income status by 2037.

Private investment expected to carry the increase

Under the plan, private investment would rise to at least 24% of GDP, while public investment would remain at about 6% because of fiscal and budget constraints.

Total public and private investment currently accounts for about 22-23% of GDP, while the government estimates that public investment can reach no more than 6% under existing budget limitations.

The remaining increase would therefore need to come from domestic private investment, foreign direct investment and non-budget financing, including public-private partnerships.

“If the private sector gains confidence and expands investment to the target of 24%, matching the level before the Tom Yum Kung crisis, it would provide significant momentum for GDP growth above 3% and possibly towards 4% in the future,” Danucha said.

He identified two main conditions for achieving the private investment target.

1. The first is creating clear investment opportunities by showing businesses the direction in which the country intends to develop. Policy continuity, confidence, investment-friendly laws and regulations, fewer bureaucratic procedures and the absence of corruption would also be essential.
2. The second is directing investment into eight target industries expected to grow by an average of 5% and together account for 42.7% of GDP.

The target growth rates are:

• Future mobility: 7%
• Processed food: 6%
• High-technology industries: 6%
• Health industries: 6%
• Tourism: 5%
• Trade and services: 5%
• Creative economy: 3%
• Agricultural industries: 2%

The government will establish specialised working groups, including an Investment Hub and a New Investment Engine group, to attract new industries.

Medical and medical-equipment investment will be among the priorities because of its potential to support economic growth and strengthen the country’s long-term security of medicine supplies.

Business leaders join investment subcommittee

The national investment development subcommittee includes senior civil servants, private-sector executives and experts with experience in attracting foreign direct investment.

Its appointed members include:

• Kongkrapan Intarajang, president and chief executive officer of PTT Plc
• Thammasak Sethaudom, president and chief executive officer of SCG
• Thapana Sirivadhanabhakdi, president and chief executive officer of Thai Beverage Plc
• Piti Tantakasem, director and chief executive officer of TMBThanachart Bank
• Teeranun Srihong, chairman of the Thailand Management Association
• Kulit Sombatsiri, former permanent secretary for energy
• Benjarong Suwankiri, former vice-minister for finance
• Laksaman Atthapich, chief executive officer of National Credit Bureau Co Ltd

Five strategies to reshape investment

Narit Therdsteerasukdi, secretary-general of the Board of Investment and secretary to the subcommittee, said the panel had approved five strategies intended to establish Thailand as a future investment and economic hub.

The first, the Investment and Industry Transformation Hub, will upgrade existing industries while building new industrial bases.

The government plans to accelerate approvals through the Thailand FastPass mechanism, reduce licensing procedures and approval times, and develop electricity, water and land infrastructure for future investment.

The Skill Bridge programme will be used to improve the capabilities of Thai workers and support industries including clean energy, bio-based and green industries, electric vehicles, semiconductors, advanced electronics, digital technology, artificial intelligence, automation, robotics, medical services and future food.

The strategy will also help Thai companies enter global industrial supply chains and increase local content in target sectors.

Financial and fiscal measures, including preferential loans, tax incentives and government procurement, will be used to strengthen the competitiveness of domestic businesses.

AI investment target set at 100 billion baht

The second strategy, the AI and Digital Hub, aims to establish Thailand as an artificial-intelligence centre by attracting investment in AI, semiconductors and chip design.

The government is seeking at least 100 billion baht of investment in these sectors by 2027 and wants the AI economy to generate value equivalent to 5% of GDP.

The plan includes developing digital infrastructure, data systems, skilled workers, research and development, and intellectual property protections.

AI adoption will also be promoted across businesses, target industries and government agencies to increase productivity, reduce costs and create new services.

Green, financial and medical hubs

The third strategy, the Green Hub, will accelerate Thailand’s transition to a green economy by attracting clean-energy investment and developing smart electricity grids, electric-vehicle infrastructure and greener transport systems.

The government also plans to develop carbon accounting, a carbon market, an emissions trading system and green financial instruments to help Thai businesses compete in international markets with tighter sustainability requirements.

The fourth strategy, the Financial Hub, will use Thailand’s financial system to support future investment and establish the country as a regional centre for banking, capital markets, insurance and wealth management.

Capital-market measures will support innovative businesses, start-ups and Thai companies with the potential to become internationally competitive national champions by improving access to fundraising and finance.

The government also sees an opportunity to attract financial institutions and companies from the Middle East that are seeking investment locations outside the region and view Thailand as less exposed to geopolitical risks.

The fifth strategy, the Medical Investment Hub, will seek to establish Thailand as a regional production base and innovation centre for high-value medical industries.

The plan covers research and development, pharmaceuticals, medical devices and high-value health products.

It will also connect Thai companies with global medical supply chains, increase local production of components and medical equipment, and strengthen the country’s position as a regional centre for medical manufacturing and innovation.

Source: Bangkokbiznews