Thailand plans THB100bn transformation fund to revamp industry
Planned in phases, the fund would draw private capital to help smaller SMEs upgrade machinery and move into future businesses.
- Thailand's Industry Ministry is planning a THB 100 billion "Industrial Transformation Fund" to be rolled out in phases.
- The fund will seek private-sector co-investment, with the World Bank being the first institution approached, to help smaller SME operators upgrade and modernize.
- This initiative is part of a wider strategy to tighten investment promotion conditions, prioritizing industries that use domestic supply chains and create local jobs.
Industry Minister Varawut Silpa-archa said the ministry is planning to set up an Industrial Transformation Fund worth around THB100 billion, to be rolled out in phases.
Under the proposed model, the fund would draw in private-sector co-investment. Talks are set to be held this week with the World Bank as the first institution to be approached, as it is an international financial institution that provides financing and technical assistance to developing countries.
The ministry already has criteria for the kind of partner it wants to bring in. It must be a capable, well-funded private company that can help support the industry. It can be a Thai or foreign company, but it must come in to transform the Thai industry.
However, discussions will still be needed with the Finance Ministry to ensure there is no overlap with the SME fund under the Pracharat framework, as the Industrial Transformation Fund is intended to help smaller SME operators shift their businesses towards future industries and upgrade machinery.
Varawut said that on April 23, 2026, the Board of Investment (BOI) board would meet under the chairmanship of Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, with talks due to cover new conditions for investment promotion.
In particular, the conditions should be tightened so that only industries that bring the greatest benefit to Thailand receive support, he said, noting that some industries have invested in the country without using domestic supply chains at all or creating jobs locally.
“For example, it is not that we do not want the data centre industry. But if it uses Thai-made PCBs, why would we not want it? What we need to discuss is what Thailand actually gains from bringing it in. Does it create jobs? How many? How does it use domestic raw materials?”
Some industries use 80% or even 100% local content, he said, adding that Thailand would obviously want such investment. He said the issue must first be discussed with Ekniti at the BOI board meeting to see how the conditions could be adjusted.
At present, what Thailand gets is not worth what it gives up, he said. He added that the BOI’s conditions must be reviewed to see when they were first set and how the regulations were framed, noting that some had been in place since Banharn Silpa-archa was a minister.
Varawut added that, given the war and current crises, Thailand needs to review which benefits it should secure in full. As for which industries should be supported, and in which years, he said it would be necessary to hear views from all agencies.
