TDRI Urges Shift in Investment Policy to Tech Ownership

Thansettakij•Economy•5d ago

Reader Briefing

TDRI suggests the Thai government replace traditional FDI attraction with a modern industrial policy to avoid becoming merely a 'rental space' for foreign factories.

•Dr. Nopparuj Jindasombatjaroen of TDRI warns that Thailand is entering an 'Enclave Economy' state.
•Private investment grew by 13.4% in Q2/2026, but the manufacturing sector expanded by only 0.1%.
•TDRI proposes a 'modern industrial policy' focusing on specific global supply chain positions rather than generic regional hubs.
•The current investment model relies heavily on importing machinery, contributing to a record current account deficit of approximately 575 billion baht.

Overview

•Private investment in Q2/2026 grew by 13.4%, while the manufacturing sector grew only 0.1% and capacity utilization dropped to 57.47%.
•Dr. Nopparuj Jindasombatjaroen describes the current situation as an 'Enclave Economy' where foreign investment is disconnected from the domestic economy.
•High investment figures in Q2/2026 are largely driven by imports of machinery and technology, leading to a current account deficit of approximately 575 billion baht.
•Dr. Nopparuj Jindasombatjaroen warns that continuing the old FDI attraction approach may turn Thailand into a 'rental space' for factories and distribution centers.
•Dr. Nopparuj Jindasombatjaroen asserts that Thailand cannot escape the middle-income trap if it relies solely on end-stage assembly or providing space for foreign production bases.
•TDRI proposes a 'modern industrial policy' with three components: selecting specific positions in the global supply chain, transitioning traditional industries, and integrated government strategic planning.
•The Thai government is urged to coordinate across ministries to support research funding, upgrade factories, and use government procurement to create markets for domestic technology.

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Key Entities

Person

Dr. Nopparuj Jindasombatjaroen(ดร.นพรุจ จินดาสมบัติเจริญ)

An academic at the Thailand Development Research Institute.

Organization

Thailand Development Research Institute (TDRI)(สถาบันวิจัยเพื่อการพัฒนาประเทศไทย (ทีดีอาร์ไอ))

A research institute whose academic warns about the Thai economic structure.

Office of the National Economic and Social Development Council (NESDC)(สำนักงานสภาพัฒนาการเศรษฐกิจและสังคมแห่งชาติ(สศช.))

The agency that reported economic figures for Q2/2026.

Place

Middle East(ตะวันออกกลาง)ℹ️

A region where unrest affected oil prices and Thailand's current account deficit.

Policy

Modern Industrial Policy(นโยบายอุตสาหกรรมยุคใหม่)

A proposed policy framework focused on technology, productivity, and creating value for Thai people.