- Foreign investment in Thailand surged in 2025, with FBA approvals up 72% and inflows exceeding THB 225 billion by August led by Japan, Singapore, and the U.S.
- The Eastern Economic Corridor captured about one-third of foreign investment, driven by data centers/digital infrastructure, electronics, EV supply chains, and renewables.
- Thailand is pursuing FBA reforms to liberalize List 3 sectors and simplify licensing while tightening enforcement against nominee ownership structures.
- For U.S. firms, the Treaty of Amity still enables majority ownership in eligible sectors and a new bilateral trade framework aims to cut tariffs and key non-tariff barriers, though major sector exclusions remain.
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Recent economic data confirm a sharp acceleration in foreign investment into Thailand during the first nine months of 2025. By late October, foreign investment approvals under the Foreign Business Act reached THB 276.74 billion (~US$8.4 billion) across nearly 900 foreign firms—a 72% increase over the same period in 2024. Investment promotion applications via the Board of Investment (BOI) surged roughly 94% to THB 1.37 trillion, with foreign direct investment applications rising by 82%.
The Eastern Economic Corridor (EEC) has consolidated its role as the nation’s premier investment magnet, capturing approximately one-third of foreign investment value by mid-2025. [5,9] Sectors attracting the most capital include digital infrastructure (notably data centers), electronics and electrical appliances (E&E), automotive and EV component manufacturing, and renewables. [3,7,11] These sectoral preferences reflect global supply chain realignments and Thailand’s policy push under its “Bio-Circular-Green Economy” framework. [4,10]
On the regulatory front, the Cabinet in April 2025 authorized amendments to the Foreign Business Act (1999) to liberalize participation in previously restricted List 3 sectors, simplify foreign business licensing, and raise permissible foreign ownership thresholds. [6,8] Simultaneously, enforcement measures against nominee shareholding arrangements have intensified, reflecting concerns over opaque ownership structures. [6,8]
For U.S. investors, the Treaty of Amity stands as a stable legal vehicle, still offering national treatment and full or majority ownership rights in eligible sectors. [3,10] In December 2025, Thailand and the U.S. also agreed on a broader Trade Framework, pledging to reduce tariffs on nearly all industrial, agricultural, and food products from the U.S., while streamlining non-tariff barriers in medical, vehicle, and pharmaceutical sectors. [3,11] Despite these advantages, Treaty restrictions—especially in banking, land ownership, natural resource exploitation, transport, and communications—remain firmly in place. [3,6,7]
Strategic implications: Thailand’s rising status as an ASEAN tech and EV supply hub presents strong upside for U.S. companies in high-tech manufacturing, digital services, and green energy. Still, investors must navigate an evolving regulatory regime; eligibility for Amity status, ownership thresholds, and sectoral restrictions remain critical to structuring entry strategies. Also of note: domestic competition, infrastructure bottlenecks in less developed regions, and the ability to meet local participation or content requirements may pose challenges.
Open questions: Will the proposed FBA amendments gain legislative approval, and if so, what specific List 3 sectors will see sustained liberalization? How will enforcement changes around nominee shareholders be implemented, and what will be the compliance burden for international firms? To what extent will the new U.S.–Thailand trade framework reduce costs or create export opportunities versus existing FTAs and regional trade agreements?
Supporting Notes
- From January to August 2025, foreign direct investment into Thailand rose 125% YoY to THB 225.5 billion (≈ US$6.9 billion), with top originators being Japan (≈ THB 71.8B), Singapore, and the U.S. [2,5,9]
- First half 2025 saw BOI applications climb to THB 1.06 trillion (~US$32.5 billion), propelled by digital sector investments that rose 20-fold and strong commitments in E&E and infrastructure sectors.
- EEC attracted approximately 29–33% of foreign investor approvals and investment value by October 2025 (about THB 90.79 billion in value).
- April 2025 Cabinet decision approved revisions to the Foreign Business Act to relax foreign ownership restrictions in List 3 sectors, streamline foreign business licensing, and enhance enforcement of nominee arrangement prohibitions. [6,8]
- The Treaty of Amity remains active as of 2025, allowing U.S. majority ownership and national treatment in eligible sectors, although certain sectors remain excluded. [3,10,11]
- Under the new U.S.–Thailand Trade Framework, Thailand committed to eliminate tariffs on almost all U.S. industrial, agricultural, and food imports; in return the U.S. agreed to reduced tariffs on selected Thai goods and both sides to align regulatory standards in key sectors.