Thailand's export landscape is poised for a transformative year in 2025, with emerging sectors offering fresh opportunities amid ongoing global trade uncertainties.
Despite facing headwinds from international tariff disputes and geopolitical tensions, the kingdom's strategic diversification into new growth areas promises to reshape its economic trajectory.
DITP Director-General Sunanta Kangvalkulkij attributes this optimism to encouraging importer sentiment and Thailand's proactive exploration of new export markets. The country has witnessed increased participation in business-matching activities with emerging trade partners, signaling a strategic pivot away from over-dependence on traditional markets
Thailand's merchandise exports achieved a record-breaking USD 31 billion in May 2025, marking an 18.4% year-on-year surge driven primarily by electronics and gold exports. This exceptional performance, which exceeded expectations and marked the highest level on record, brought the five-month export expansion to an impressive 14.9%.
However, challenges persist. As Kirida Bhaopichitr from the Thailand Development Research Institute (TDRI) cautioned earlier this year, 2025 presents uncertainties as geopolitical tensions intensify and deglobalisation accelerates. The resumption of trade wars under President Donald Trump's administration poses particular risks for Thailand, which ranks among the top 15 countries with trade surpluses with the United States.
Emerging Powerhouse: The Bio-Circular-Green Economy
A transformative force in Thailand's export strategy is the Bio-Circular-Green (BCG) economy model, which integrates biological resources, circular economy principles, and green technologies. This innovative approach capitalises on Thailand's rich biodiversity and agricultural strengths whilst promoting sustainable development aligned with UN Sustainable Development Goals.
The BCG model represents a paradigm shift towards value-based and innovation-driven economic growth. The Ministry of Higher Education, Science, Research and Innovation estimates that BCG economy activities could grow to one-fourth of Thailand's GDP (approximately US$137 billion) by 2025, up from one-fifth currently.
The model encompasses three interconnected pillars: bioeconomy utilising biological resources for sustainable products, circular economy principles minimising waste and maximising resource efficiency, and green economy approaches reducing environmental impact. Key sectors include sustainable agriculture, biotechnology, renewable energy, eco-tourism, and advanced materials derived from natural resources.
The biobased product market is expected to reach $350 billion globally by 2027, whilst the biochemicals market is projected to increase from $6.5 billion in 2016 to $24 billion in 2025. Thailand's positioning within this growing market represents a significant opportunity for export diversification.
The BCG framework addresses multiple sustainable development themes, with estimates suggesting it could mobilise $23 billion of new investments across various sustainable sectors including clean energy, responsible consumption, and biodiversity conservation.
Electric Vehicles: Accelerating Towards Export Success
Thailand's electric vehicle sector represents another promising frontier for export growth, with the country rapidly positioning itself as the ASEAN region's leading EV manufacturing hub. The transformation from policy aspirations to tangible results demonstrates remarkable momentum in this strategic sector.
Thailand has emerged as Southeast Asia's EV leader, with battery electric vehicle registrations reaching 57,289 units in the first half of 2025—a 52% year-on-year increase that propelled EVs to comprise over 15% of new vehicle registrations, the highest share among ASEAN nations. The EV market, valued at approximately US$5.1 billion, is projected to grow at 17.7% annually, reaching 290,000 units by 2030.
The Board of Investment has approved 169 EV-related projects worth US$4.2 billion, encompassing production capacity of 386,000 BEV units annually. Major investments include Chinese manufacturers BYD and Great Wall Motors committing over US$3 billion collectively, with BYD establishing its first plant outside China in Rayong featuring 150,000-unit annual capacity. Traditional automakers are equally committed, with Mazda investing US$150 million for electric compact SUV production targeting 100,000 units annually, while Toyota, Honda, and BMW have announced significant EV and battery production investments.
Thailand made history by recording its first EV exports in April 2025 with 660 units. The EV Board expects exports to reach 12,500 units this year and approximately 52,000 units by 2026, supported by a crucial policy innovation allowing exported EVs to count toward domestic production requirements.
Thailand's competitive advantages include its established automotive ecosystem with mature supply chains and skilled workforce, strategic ASEAN location with robust logistics infrastructure, and comprehensive government incentives. The Eastern Economic Corridor framework further supports ecosystem development, with expanding charging infrastructure and initiatives to develop local battery manufacturing capabilities, positioning Thailand for sustained competitiveness in the global EV market.
Additional Promising Export Sectors
Beyond BCG and electric vehicles, Thailand is cultivating additional promising export sectors. The digital economy presents significant opportunities, with software services, fintech solutions, and digital content creation gaining international traction.
Medical device manufacturing is expanding rapidly, leveraging Thailand's established healthcare expertise and cost-competitive production capabilities. The food technology sector continues evolving beyond traditional agricultural exports, with processed foods, functional ingredients, and plant-based alternatives attracting global demand. Smart manufacturing and Industry 4.0 technologies also offer export potential as Thailand positions itself as a regional technology hub.
Strategic Mitigation Measures
To navigate the challenging trade environment, the DITP has implemented four key mitigation strategies.
These include extending soft loan schemes through Thai banks to help exporters manage increased costs, with a notable collaboration formalized through a Memorandum of Understanding signed with EXIM Bank on July 3, 2025.
This partnership launched the "DITP – EXIM Global Growth Package" specifically designed to support SME exporters.
Additional strategies include tasking trade offices worldwide with identifying new export destinations, closely monitoring US trade flows, and establishing a new Export Centre on Ratchadapisek Road providing streamlined licensing and advisory services.
Despite global uncertainties, Thailand's strategic focus on innovative sectors like the BCG economy and electric vehicles positions the country well for sustainable export growth. The combination of traditional manufacturing strengths with emerging high-value industries offers a pathway to resilience against trade tensions whilst contributing to global sustainability goals.
As the kingdom navigates the complex landscape of 2025, success will depend on continued investment in these new growth sectors, effective implementation of support measures for exporters, and Thailand's ability to establish itself as an indispensable partner in global supply chains for sustainable and innovative products.
The remarkable progress in electric vehicle manufacturing and exports exemplifies Thailand's capacity to transform strategic vision into measurable economic results, providing a blueprint for success across other emerging sectors.
Source:
The Nation Thailand. (2025, September 8). Thailand's export outlook 2025: New sectors, new growth.
