Green manufacturing offers opportunity

Thailand is stepping up its push toward green manufacturing, with the bio-, circular and green (BCG) economic model at the heart of the country's long-term climate and economic strategy. Though BCG was first declared a national agenda item in 2021 under former prime minister Prayut Chan-o-cha, the current government continues to treat it as a central pillar of Thailand's industrial direction.

Industry Minister Varawut Silpa-archa has identified the transition toward high-technology, environmentally-friendly production as a key priority. He has indicated plans to engage foreign investors on expansion projects and to clarify policies supporting the industrial sector, including electric vehicle promotion and renewable energy development. He also stressed that stricter environmental standards will be enforced to strengthen Thailand's competitiveness in global markets.

The Board of Investment's secretary-general, Narit Therdsteerasukdi, warned that Thailand must adapt to the global shift toward stricter environmental standards or risk being left behind. He noted that Thailand has positioned low-carbon, environmentally-friendly products as a priority within its national export strategy to meet growing international demand.

The World Bank's Thailand Economic Monitor published in February 2026 identified advanced green manufacturing as a critical pathway for stimulating the economy and overcoming structural bottlenecks. World Bank senior country economist Kiatipong Ariyapruchya stated that scaling up green manufacturing projects could lift GDP by 2.9 percent by 2035 and create 203,000 high-quality jobs.

Thailand's net-zero target has also been brought forward to 2050, which is 15 years earlier than its original target, making the BCG framework even more significant to national planning.

For business owners, investors and expats operating in Thailand, these developments signal a meaningful shift in the regulatory and investment environment. Understanding how evolving environmental standards and government incentives may affect your business structure, licensing or investment plans is an area where sound legal advice becomes increasingly valuable.

At SLF Legal in Koh Samui, we work with clients across Thailand to navigate the legal aspects of business setup, investment, and compliance in a changing regulatory landscape. If you would like to understand how Thailand's green economy direction may affect your operations or investment strategy, we are here to help.

Source: Bangkok Post, 4 July 2026, written by Lamonphet Apisitniran.