Thailand might face a drop in new foreign investments because of global trade uncertainties. At the same time, the country is trying to talk with the US to reduce the impact of a possible 36% tariff.
New foreign investment applications might be put on hold for a while, especially while it’s still unclear what will happen with the US tariffs. This comes during President Donald Trump’s 90-day pause on raising tariffs, said Narit Therdsteerasukdi, head of Thailand’s Board of Investment.
He said that some companies that promised to invest in Thailand might delay their plans until the situation becomes clearer.
“The slowdown could probably happen temporarily in the short term,” Mr Narit told reporters late Wednesday. “Some investment projects that export mainly to the US, they may wait and see. It’s a normal situation under uncertainties.”
This situation could slow down the recent investment boom in Thailand. In 2024, investment applications reached a 10-year high of 1.14 trillion baht.
In the first quarter of 2025, applications almost doubled to 431 billion baht compared to last year, thanks to large foreign investments in digital infrastructure and data centers, according to the Board of Investment.
Still, Mr Narit said he wasn’t too concerned as Thailand has “good momentum,” and investment pledges this year are expected to ultimately top last year’s.
He said most companies still believe Thailand has strong long-term potential to become more important in the global supply chain. Many foreign businesses that focus on the Thai market or export to countries other than the US will likely continue with their investments without any reason to stop.
The government is still trying to set a new date to talk with US officials. A meeting planned for April 23 was delayed because some important issues still need to be carefully reviewed.
Thailand has promised to work with US Customs and Border Protection. They will create new rules and check for any false claims by companies exporting goods from Thailand.
Bangkok has said it is ready to help reduce the $46 billion trade gap with the US, Thailand’s biggest export market last year.
To do this, Thailand plans to buy more American natural gas and farm products like corn and soybean meal. It also urges Thai companies to invest more in the US to help avoid Trump’s planned tariffs.
Mr. Narit said a group of large Thai companies and business organizations will attend the Select USA Investment Summit in Maryland next week.
He recently returned from a roadshow in Seattle and Washington, DC, where he met with US tech companies and business groups. He said Thailand is still important for supply chain expansion, and the companies are still confident and interested in investing there.
“The Thai government is now working hard to prepare the position and proposal for the discussion with the US administration. And I hope that the result will be favorable for the investors,” Mr Narit said. “We don’t need to rush or to go first. We’re waiting for the right timing.”
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