BANGKOK — Thailand’s Finance Minister, Pichai Chunhavajira, has highlighted three critical factors attracting foreign investment to the country: land availability, access to green electricity, and a skilled labor force. Speaking at the seminar “2025 Net Zero and the Challenges of The New Global Economy” on November 26, he emphasized the importance of transitioning to a green economy by reducing greenhouse gas emissions.
Key Initiatives for a Green Economy
The Finance Minister urged businesses to prioritize reducing emissions to address climate change. Thailand aims to cut greenhouse gas emissions by at least 30% and has recognized the importance of compliance with global environmental standards, such as the EU’s Carbon Border Adjustment Mechanism (CBAM). This regulation adjusts carbon pricing for imports to prevent carbon leakage, prompting Thai industries to adopt greener operations quickly.
The government plans to support industrial estates in aligning with global green policies, ensuring they remain competitive in the international market.
Foreign Direct Investment Soars
Foreign Direct Investment (FDI) applications through the Board of Investment (BOI) reached over 700 billion baht (US$20 billion) in the first nine months of 2024, marking a decade-high record.
To sustain this momentum, the government is committed to addressing foreign investors’ top requirements:
- Affordable and well-developed land: Ensuring sufficient space for industrial growth.
- Reliable green electricity supply: Expanding clean energy infrastructure to meet growing demands.
- Skilled workforce for modern industries: Enhancing education and training systems to prepare for high-tech sectors.
Energy Policy Priorities
Prime Minister Paetongtarn Shinawatra reinforced the importance of clean energy during a recent National Energy Policy Committee meeting. She called for swift action to expand clean energy capabilities, focusing on Direct Power Purchase Agreements (Direct PPAs) to attract investment.
By accelerating the transition to a green economy and addressing key investor concerns, Thailand aims to position itself as a competitive and sustainable hub for global businesses.
