Thailand is experiencing a notable rise in foreign investment following a period of political instability, according to Vice-Finance Minister Santitarn Sathirathai. The country, which has faced coups and court-ordered removals of prime ministers in recent years, is now benefiting from renewed confidence stemming from greater political stability and more consistent economic policies.

Data from the Board of Investment (BOI) indicate that inward foreign investment rose approximately 30 percent in the second quarter of 2026, following a more than 20 percent increase in the first quarter. BOI-supported projects currently represent around 30 percent of total investment in Thailand. Santitarn, who served as head of Credit Suisse’s emerging Asia economies team between 2010 and 2018, noted a shift in perceptions among multinational firms, investors, and credit-rating agencies over the past several months. He said interest in Thailand at the international level is now unusually strong, with many investors describing the country’s prospects as “better than expected.”

Domestically, political confidence has been bolstered by the re-election of conservative Prime Minister Anutin Charvirakul in February 2026. This has reassured investors about the government’s policy direction and execution capacity. Globally, trade tensions, the ongoing conflict in Iran, and the intensifying strategic rivalry between the United States and China have prompted companies to diversify supply chains, increasing demand for stable investment destinations such as Thailand.

Thailand’s appeal is further supported by its relatively low inflation, strong external financial position, and accommodative monetary policies, distinguishing it from regional peers facing more economic volatility. The Thai baht has depreciated by about 5.3 percent so far in 2026, a smaller decline than currencies like Indonesia’s rupiah or the Philippine peso, which some experts believe may enhance Thailand’s competitive edge. The stock market has also shown positive momentum amid this macroeconomic stability.

Despite these gains, Santitarn acknowledged that political tensions and protests remain potential risks to Thailand’s stability. The country’s recent history includes two coups this century and judicial interventions that dismissed previous prime ministers. To reduce political uncertainty’s impact on economic planning, the government is collaborating closely with the private sector to set shared priorities across key sectors such as quality tourism, future mobility, and the digital economy. This approach aims to ensure continuity irrespective of political changes.

Santitarn emphasized that Thailand does not necessarily need to outpace fast-growing neighbors like Vietnam in investment growth. Instead, global companies are increasingly seeking to spread production risk across various ASEAN countries rather than concentrating activities in a single market. Thailand’s stability and infrastructure make it an attractive option in this diversification strategy.

Thailand’s ongoing challenge remains translating heightened investment interest into tangible economic growth, which has averaged around 2 percent in recent years—well below regional leaders. While investment applications through the BOI reached record highs in 2025 and are on track to exceed that level this year, the government is now focusing on expediting project implementation and addressing obstacles related to land acquisition, water resources, infrastructure, and permits.

With private enterprises responsible for about 75 percent of investment, the government plans to leverage public infrastructure projects to attract more private capital. Strategic areas targeted for growth include artificial intelligence, data centers, electric vehicles, health services, and clean energy, alongside modernization of traditional sectors such as manufacturing, food processing, and tourism.

Santitarn compared Thailand’s traditional economic engines to aging trains that require upgrades to meet modern demands. The country aims to “board new high-speed trains” driven by AI, the digital economy, health innovation, and environmental sustainability to achieve faster and more resilient growth.