HSBC Thailand and Thailand’s Board of Investment (BOI) have signed a memorandum of understanding (MoU) to promote Thailand as Southeast Asia’s investment hub. This collaboration aims to enhance foreign direct investment (FDI) opportunities by leveraging HSBC’s international networks, experience, and digital banking platforms to support foreign investors.
Thailand’s Economic Potential
Despite Thailand’s modest economic performance, HSBC Thailand’sCEO, Giorgio Gamba, expressed strong confidence in the country’s growth potential. Gamba highlighted the bank’s successful year in terms of FDI, pointing to the positive sentiment among multinational corporations considering Thailand for future investments.
HSBC’s Role in Facilitating Investment
HSBC Thailand’s niche focus on multinational interest and inbound FDI positions it well to support Thailand’s investment goals. Gamba noted that while HSBC does not engage in retail or small and medium-sized business banking, its cross-border banking solutions and robust ecosystem can attract significant investment.
Thailand’s Attractive Features for Investors
According to the HSBC Global Connections survey, 18% of multinational firms plan to enter the Thai market within the next two years. Thailand’s skilled workforce, expanding digital economy, and strong manufacturing sector, especially in the automotive industry, make it a compelling destination for investors.
Strategic Sectors and Future Plans
Thailand, already ASEAN’s largest automaker, is set to benefit from increased investment in electric vehicles and other innovative industries. Gamba emphasised supporting the BOI in developing new trade and investment corridors, particularly in smart electronics and the digital economy.
BOI’s Perspective on the Partnership
Narit Therdsteerasukdi, BOISecretary-General, highlighted the significance of the partnership with HSBC, noting the 38% increase in foreign investors’ applications for investment promotion in 2023. This collaboration is expected to enhance Thailand’s competitiveness and business environment further.
Global Promotion Efforts
HSBC will promote Thailand as ASEAN’s investment hub through international roadshows in key markets, including China, Hong Kong, India, Saudi Arabia, ASEAN, Europe, and the United Kingdom. This initiative aims to bridge Thailand with international corporates in strategic sectors such as the EV supply chain, semiconductor and upstream electronics, digital, new energy, and global headquarters.
Conclusion: A Shared Vision for Growth
The partnership between HSBC and BOI underscores a shared vision of driving economic growth and creating sustainable business opportunities in Thailand. While no specific targets have been set, the collaborative effort aims to align with Thailand’s national FDI goals, benefiting international and domestic bank.
