On April 2025, Thailand’s Cabinet made waves by announcing it had approved in principle a proposal to update the Foreign Business Act (FBA) – Thailand’s main legal framework for foreign investments – with the objective to modernize and improve the country’s economic competitiveness. The possibility of a modernization of the FBA, mostly unchanged since its enactment in 1999, has been welcomed favorably by foreign investors, while also raising questions about the extent of the changes it proposes in practice.
In recent years, Thailand has emerged as one of Southeast Asia’s most attractive destinations for foreign direct investment. In 2024 the ASEAN-6 economies collectively received approximately USD 225 billion in FDI, an increase of around 10 percent over 2023, with Thailand capturing a growing share of that inflow[1]. In the first four months of 2025, foreign investment into Thailand climbed more than 40% year on year, driven in large part by projects in the Eastern Economic Corridor (EEC), Thailand’s flagship economic zone, including new energy, logistics and advanced manufacturing facilities[2].
Yet, despite Thailand’s attractiveness and impressive momentum, the country can remain complex to access for foreign investors due to various restrictions and limitations under the FBA. This new pathway for Thailand to open further to foreign capital has been met with diverse reactions from stakeholders, that need to be nuanced in light of the actual scope of amendments proposed by the Thai government.
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The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situation.
[1] UNCTAD World Investment Report 2025
[2] Royal Thai US Embassy
