Thailand Must Prioritize Speed and Focus to Compete for Global Investment

A Call for Sharper Strategy

Thailand needs to refine its economic approach and accelerate government processes if it hopes to secure a bigger slice of global investment, according to Citi. Speaking at the Bangkok Post's 80th anniversary event on Friday, Narumon Chivangkur, Citi Country Officer and Banking Head for Thailand, outlined three critical areas where the country must improve: scale, speed, and stability.

The remarks come as multinationals actively reconfigure their supply chains in response to geopolitical tensions, technological shifts driven by artificial intelligence, and growing concerns over climate, energy, and food security. A late-2023 Citi survey of 710 large multinational corporations found that 65 percent were actively diversifying or restructuring their supply chains. Among those firms, Thailand ranked as the second most preferred destination in the region, chosen by 17 percent of respondents, trailing Vietnam at 25 percent.

The gap underscores the urgency for Thailand to move faster as competition for foreign direct investment intensifies across Asia.

Building Depth Over Breadth

Citi recommends that Thailand pursue greater precision in three areas rather than adopting a broad-based strategy. On scale, the country should concentrate on selected industries where it can develop deep expertise instead of spreading resources thin.

For Thailand, this means moving beyond its traditional role as the "Detroit of Asia," largely based on vehicle assembly, toward autonomous software and other higher-value industries. The country should also shift from exporting agricultural commodities such as rice, sugar, and cassava toward higher-value bio-green products, Narumon said.

Taiwan's concentration on semiconductors and Estonia's focus on digital governance serve as examples of countries building strong positions in specific areas. Healthcare and medical tourism offer further opportunities. Thailand already ranks among the world's leading medical tourism destinations and has approximately 60 internationally accredited hospitals.

The Need for Speed

On speed, Thailand should aim to complete investment-related procedures at least one day faster than regional competitors. The government's fast-track initiative is a step in the right direction, helping to streamline the investment process, Narumon said.

Global investors typically consider political stability, the risk of mass protests, policy continuity, and financial stability when deciding where to invest. Stability is the third pillar. Thailand's economic stability, particularly its sizable international reserves, remains an advantage.

Digital Growth and Workforce Shifts

Thailand's rapidly growing digital economy is another advantage, Narumon noted. It is expanding at approximately 5 to 7 percent annually, faster than the broader economy, while e-commerce and related digital activities are growing even more quickly.

At the same time, the transformation of the global economy will bring major changes to the labor market. Citi expects about 22 percent of jobs to be rewritten over the next five years as AI adoption accelerates.

The key challenge is no longer simply building digital infrastructure but ensuring that government, financial institutions, and businesses undergo an end-to-end shift in mindsets to compete effectively in a rapidly changing global economy, she said.

The Neutrality Card

For Thailand, its neutrality and ability to make independent economic decisions could become increasingly important advantages as geopolitical tensions and global fragmentation encourage companies to diversify production and reduce their reliance on individual markets.

Neutrality should not be viewed merely as a political position but as the ability and right to make independent decisions and implement them without being forced by external powers, Narumon said.

Citi sees the coming decade as a period of major economic and technological change, driven by artificial intelligence, supply chain diversification, and growing concerns over climate, energy, and food security. The changes were needed as international companies relocate production bases amid the rewiring of global supply chains.