Thai Industry Chamber Pushes Buy Thai Campaign to Boost GDP
Thai industry leaders are pushing a Buy Thai campaign to boost GDP while removing production bottlenecks, as the economy shows a divided K-shaped recovery with large firms outpacing small businesses and sectors like electronics thriving whi
The Federation of Thai Industries says Thailand's economy is recovering in a K-shaped pattern and is accelerating a Buy Thai campaign while removing production bottlenecks to increase capacity utilization and drive industrial GDP to 1.4 trillion baht. Pimpjai Leeissaranukul, chair of the Federation of Thai Industries, commented on Thailand's second-quarter 2025 economy, which grew 1.9% compared to the same period last year, saying the figures show Thailand's economy is holding up despite geopolitical tensions and energy cost pressures. However, the recovery remains patchy and shows a clear K-shaped character.
July's industrial confidence index (TISI) shows large enterprises at 105.5 while small businesses scored only 75.3. By sector, electrical and electronics industries stood at 109.0, while chemicals fell to just 59.7, making it the only group in continuous decline—evidence of a true two-speed economy affecting both firm sizes and individual sectors. Private consumption in the second quarter expanded 1.9%, slowing from 3.3% in the previous quarter, while the average capacity utilization rate dropped to 57.47%, down 3.2% year-on-year. The July-September TISI averaged 86.1.
Analysts identified three distinct causes of low capacity utilization requiring different remedies: first, sectors facing structural pressures from energy and raw material costs plus excess foreign production capacity—such as chemicals, petrochemicals, steel, and construction materials—compounded by Middle East tensions affecting raw material imports; second, production-constrained sectors like oil refineries, which previously ran near full capacity but must now match sluggish domestic demand as exports are restricted and fuel storage reaches saturation; and third, sectors where new investment capacity is expanding faster than production—including electronics and printed circuit boards—a positive sign of fresh investment gradually coming online.
Exports in the first half have clustered heavily in electronics, while other product groups showed limited overall growth, aligning with limited manufacturing sector recovery. The Federation of Thai Industries proposes two parallel approaches to drive the economy forward. First is stimulating domestic demand through the Buy Thai campaign, targeting finished goods with high employment and large spare capacity—textiles, apparel, footwear, furniture, and household goods currently using only 37–50% of production capacity and therefore ready to ramp up immediately when orders arrive. These labour-intensive sectors align with the bottom of the K, with promotion through distribution channels and campaigns to buy Thai goods, coupled with controls on dumped imports, ensuring money flows back to Thai manufacturers. Second is unlocking production constraints: conditionally opening oil exports beyond domestic demand and reserves while managing retail prices through existing refining mechanisms; accelerating public construction projects and promoting Made in Thailand (MiT) standards to directly revive steel and construction material orders; and securing raw material supply chains and energy price structures for the sector.
