4.688
%
Neutral
53
mm boe
19
%
The political uncertainty that previously hampered foreign investment has abated, and the country is now attracting new FDI. Thailand’s civilian-led coalition government has prioritized foreign direct investment, along with domestic stimulus and liberal trade policies, as key elements of its economic growth strategy.
March 3, 2026
Asia - South East
mm bbl
bcf
South eastern Asia, bordering the Andaman Sea and the Gulf of Thailand, southeast of Myanmar.
Multiple (PSC/Concession)
Concession-based fiscal system which has had three main variations over time, with the most recent terms known as the ‘Thai III’ regime. Thai III terms include royalty, additional profits tax (called the Special Remuneratory Benefit (SRB)) and corporate income tax. Royalty rates are incremental and based upon production rates, with discounting of rates for deep-water licences. SRB rates are uniquely based upon annual revenue and the cumulative metres of wells drilled on the concession area, with an adjustment for the geological complexity of the concession. It should be noted that profits from petroleum operations are not subject to dividend withholding taxes when profits are remitted overseas.
In the coming years, increased government investment in megaprojects is expected to boost economic growth and upgrade infrastructure through public spending and public-private partnerships. Projects include roads, railways, ports, airports, and a dry port for container handling, along with initiatives like the Thai-Chinese high-speed train, Eastern Economic Corridor developments such as U-Tapao Airport, Map Ta Phut Port Phase 3, Laem Chabang Port Phase 3, and a new canal by the Royal Irrigation Department. The State Railways of Thailand plans to deploy electric vehicle batteries for shunter locomotives, diesel multiple units, and freight cars. Since the 2020 pandemic, Thailand rapidly adopted digital transformation across sectors, supported by government efforts to position as a regional ICT hub. As a result, the ICT market has expanded due to increased technology adoption, rising smartphone and internet use, and a thriving e-commerce sector, attracting competition from local and international companies like Huawei, ZTE, Intel, Ericsson, Cisco, Samsung, and HPE.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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