Speaking at the National Press Council of Thailand on July 4, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas gave one of the clearest recent statements of the government's economic thinking: Thailand is being hit by global shocks it cannot control and domestic weaknesses it can no longer defer. Investment, he argued, must now become one of the country's main tools for renewal.
European companies have long viewed Thailand favourably as a destination for investment. Thailand is Asean's second-largest economy, one of its most industrialised, and a long-standing hub for European companies operating across the region. Its strengths are real: a strategic location, a substantial manufacturing base, a skilled workforce and a business ecosystem many competitors cannot easily match.
This week, the EU-Asean Business Council is leading a delegation of more than 70 representatives from 33 European companies to Bangkok. Thailand is defining a new investment agenda; European business is looking for reliable partners, resilient supply chains and markets where long-term investment is supported by strong rules. These interests align closely.
Business does not happen in a void and, increasingly, business and foreign policy are inextricably linked. Geopolitics now shapes supply chains, trade policy, energy security, technology choices and cross-border data flows. For companies making long-term investment decisions, economic diplomacy is no longer peripheral. It is central to competitiveness, risk management and growth.
The Ministry of Foreign Affairs has framed Thailand's economic diplomacy around three goals: confidence, competitiveness, and collaboration and partnership. These are also the three areas where European business can make a meaningful contribution.
Confidence begins with rules. Investors welcome incentives, but they value predictability even more. They ask whether approvals are transparent, whether regulations are consistent, whether contracts are secure, whether corruption risks are being reduced, and whether the business environment is aligned with international standards.
This is why Thailand's OECD accession process matters. Unlike a free trade agreement, accession is not a negotiation in which each side trades concessions. It is a reform journey requiring alignment with international norms and best practices.
For Thailand, that process can be transformative. It can strengthen governance, transparency, anti-bribery standards, regulatory quality and investor confidence.
For European companies, it would reinforce the perception that Thailand is serious about becoming a more rules-based, high-standard investment destination.
Competitiveness is the second pillar. Thailand has clear ambitions to move up global rankings and become a higher-value economy. European businesses can support that ambition in sectors where Europe has deep strengths: advanced manufacturing, automation, electric mobility, clean energy, digital infrastructure, healthcare, life sciences, aviation, logistics, biotechnology, robotics, green finance and professional services.
These are directly linked to Thailand's next stage of growth. Clean energy and smart grids will be essential if Thailand wants to attract data centres and advanced manufacturing. Digital infrastructure, cybersecurity and data governance will be vital for the AI era. Logistics and customs efficiency will determine whether Thailand can remain a regional hub. Healthcare, biotechnology and life sciences can build on Thailand's existing strengths while moving the economy into higher-value innovation.
The Finance Minister has spoken of the need for investment in infrastructure, people and regulatory reform. European companies bring more than capital to that agenda. They bring technology, training, standards, supplier development, sustainability practices and long-term commitment. Technology transfer only works if people and companies can absorb it; that is why skills, education and public-private cooperation are as important as investment approvals.
The EU-Thailand free trade agreement is central to this opportunity. Bilateral trade between the EU and Thailand reached 1.64 trillion baht (€44.3 billion) in 2025, while European companies hold investment stocks of more than 953 billion baht in Thailand. A modern FTA can provide a stronger platform for both trade and investment. Done with ambition, it should go beyond tariffs and support services trade, digital cooperation, sustainable investment, fair competition and more predictable rules for companies on both sides.
Collaboration and partnership form the third pillar. The world in which Thailand and Europe are negotiating this agreement has changed dramatically. Globalisation is not dead, but it is being recalibrated through regional and bilateral frameworks.
Thailand can leverage the Regional Comprehensive Economic Partnership (RCEP), deepen its EU partnership, consider wider Indo-Pacific trade opportunities, and use its future Asean chairmanship to support stronger regional integration. The Asean Digital Economic Framework Agreement is another important building block. If implemented well, it can help create a more integrated regional digital economy and make Asean more attractive to investors.
The test is delivery. Approved investment must become factories, research centres, digital systems, training programmes and jobs. Regulatory reform must be felt by companies on the ground. Public-private consultation must be regular, practical and honest. Businesses do not expect every problem to be solved immediately, but they do need credible channels to raise concerns and solve implementation problems before they become investment barriers.
Thailand has called 2026 its year of investment. European business is ready to help make that more than a slogan. The opportunity now is to turn shared priorities into projects: confidence into rules, competitiveness into capability, and partnership into long-term investment.
The Business Council's visit to Bangkok this week is a chance to move from goodwill to practical cooperation.
Noel Clehane is Global Head of Public Policy at BDO and Vice Chair of the EU-ASEAN Business Council. He is leading a delegation of more than 70 representatives from 33 European companies to Bangkok from July 15–17.
