UOB’s research argues that Thailand’s ability to capture the new wave of global FDI (Foreign Direct Investment) depends less on tax incentives and more on resolving structural bottlenecks. The note underlines clean and reliable power, faster permits and infrastructure, and deeper local talent and supply chains as critical constraints, while also flagging risks from global demand shocks and aggressive incentive competition from ASEAN peers.
Power, permits and people as key bottlenecks
“Clean and reliable power, especially for data centers and electronics.”
“Speed and certainty of permits, land, and infrastructure build-out.”
“People and supply chain depth (local capability to absorb the wave).”
“Global demand/geopolitics shock: amid rising trade tensions, policy uncertainty, and geopolitical divisions, it implies that FDI flows have become highly sensitive to global policy and growth shocks.”
“Regional incentive competition: ASEAN peers are offering increasingly aggressive and targeted packages—e.g., for semiconductors and digital—raising the hurdle for Thailand to differentiate beyond tax holidays, through delivery, skills, and ecosystem.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/thailand-constraints-shape-fdi-competitiveness-uob-202602122107
