Citi Tells Thailand to Sharpen Strategy for FDI Race
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- Citi told Thailand to sharpen its economic strategy and speed up government procedures to win more foreign direct investment, with Country Officer and Banking Head Narumon Chivangkur delivering the message at the Bangkok Post's 80th anniversary event on Friday
- A Citi survey of 710 multinational corporations in late 2025 found 65% were actively diversifying or restructuring their supply chains, with Thailand the second-most preferred regional destination at 17%, behind Vietnam at 25%
- Citi recommended Thailand pursue greater "precision" in three pillars — scale, speed and stability — urging a shift from broad-based strategy to focused expertise in autonomous software, higher-value bio-green products, and medical tourism
- Thailand's "Detroit of Asia" auto-assembly model needs to evolve toward higher-value industries, with Citi citing Taiwan's semiconductor concentration and Estonia's digital governance as examples of countries building strong positions in specific sectors
- On speed, Citi pressed Thailand to complete investment-related procedures at least one day faster than regional competitors, calling the government's fast-track initiative a step in the right direction
- Thailand's neutrality should be reframed from a political position into an economic advantage enabling independent decision-making, Narumon said, as companies seek to reduce reliance on geopolitically pressured markets
- Citi expects about 22% of jobs to be "rewritten" over the next five years as AI accelerates, while Thailand's digital economy already expands 5-7% annually, faster than the broader economy
Why it matters: Thailand trails Vietnam in regional FDI preference by 8 percentage points (17% vs. 25%) among 710 surveyed multinationals, and 65% of those companies are already actively restructuring supply chains — a narrowing window for Thailand to reposition beyond low-cost auto assembly. The country's neutrality, sizable international reserves, and 60 internationally accredited hospitals are real assets, but Citi's warning is that without a focused, faster strategy, Thailand risks becoming a secondary destination as capital flows rotate toward higher-value hubs.
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