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Thailand remains neutral amid the escalating trade tensions between China and the US, with China viewed as a “big brother” and the US as the “big boss,” said Suphachai Chearavanont, Senior Vice Chairman and CEO of Charoen Pokphand Group, at the Forbes Global CEO Conference. He expressed support for the development of entertainment complexes, nuclear energy, and the strategic use of artificial intelligence (AI) to drive growth.
Suphachai emphasized Thailand’s unique position as a mediator between China and the US, highlighting its role as a “switch of Asia” due to its strategic location in the region. This neutrality allows Thailand to serve as a platform for dialogue, helping to facilitate agreements between the two economic giants.
From CP Group’s perspective, the ASEAN region remains the most attractive investment destination due to its robust economic growth. The region’s collective GDP is expected to reach $4.7 trillion by 2025, making it the fourth-largest economy globally. CP Group, which operates in 21 countries—including Thailand, China, ASEAN, Europe, the US, and Russia—continues to focus on agriculture and food as its core business. While geopolitical tensions have had some impact on supply chains, CP Group has adapted by reinforcing its regional supply network, ensuring resilience against the backdrop of shifting global power dynamics and the retreat of globalization.
Growth Drivers: Tourism, Retail, and Entertainment
Suphachai pointed to Thailand’s recovering tourism sector and the expansion of entertainment complexes as key drivers of the country’s economic growth over the next four to five years. He projected that the number of tourists visiting Thailand will reach 40 million by 2025, bolstering the country’s recovery and supporting economic activity across various sectors.
Retail and hypermarket sectors are also expected to grow in parallel, with retail projected to grow by approximately 10% this year. Hypermarkets and cash-and-carry outlets are seeing a 7% growth rate, reflecting positive consumer sentiment and purchasing power.
One significant opportunity lies in the legalization of casinos within entertainment complexes, which could generate up to US$9 billion in revenue for Thailand, positioning the country as the second-largest gambling hub after Las Vegas. However, the Thai government is still in the process of evaluating the potential economic and social impacts before making a final decision. If a solid operational plan is developed, Thailand could emerge as a major global financial center.
Despite intense global competition, Suphachai highlighted Thailand’s rapidly evolving economy and a positive outlook, largely driven by government initiatives to encourage investment. He commended the Thai government for its forward-thinking policies, which have created a favorable business environment. Suphachai believes that Thailand’s economic recovery will lead to a growth rate exceeding 2.8% in the near future.
Investment Opportunities: Asia, China, and Beyond
Discussing investment opportunities, Suphachai emphasized Asia’s high growth potential, particularly in the ASEAN region. With the realignment of global supply chains, ASEAN is attracting significant foreign direct investment (FDI), which is expected to drive further growth. Despite the ongoing conflict in Myanmar, Suphachai remains optimistic about the region’s overall prospects.
China, despite facing a real estate crisis, remains an attractive investment destination. Suphachai expressed confidence that China, as the world’s second-largest economy, will navigate these challenges and recover.
In Europe, investment opportunities remain viable, although Suphachai noted that the US presents more challenges due to shifting tax policies and broader economic implications. For CP Group’s food and agricultural subsidiaries, however, the ongoing trade tensions have had a limited impact, as the sector remains largely insulated from these disruptions.
AI, Technological Transformation, and Sustainability
Suphachai also underscored the growing importance of digital transformation and AI in enhancing business operations. From data management to cost reduction and improving customer insights, AI is a key driver of business growth. He emphasized that businesses must adapt by leveraging AI to improve operational efficiency, reduce costs, and ultimately enhance customer engagement.
Suphachai also highlighted sustainability as a central concern for businesses, particularly in areas like waste-to-product conversion. While achieving net-zero emissions by 2050 presents a significant challenge, he praised the Thai government’s push for nuclear energy as a crucial step toward long-term sustainability.
Technological advancements, especially in AI, are expected to transform the business landscape across all sectors. AI’s potential to drive efficiency, innovation, and product development will reshape organizations and improve global competitiveness. Suphachai noted that each department must embrace AI as a tool to enhance work efficiency, reduce costs, and improve customer understanding.
ASEAN: A Region in Growth
Chartsiri Sophonpanich, President of Bangkok Bank, who shared the same panel with Suphachai, noted that ASEAN is entering a period of strong growth, emerging as a region with significant purchasing power. The region is expected to become the fourth-largest economic region globally, driven in part by the reorganization of global supply chains and increased FDI.
Despite political shifts in the US, the trend of capital flowing into Asia is expected to continue. The emphasis on sustainability and Environmental, Social, and Governance (ESG) goals is attracting increased investment into the region. Chartsiri stressed that cooperation among ASEAN nations will likely provide a competitive edge, enabling the region to take advantage of global economic growth opportunities.
Looking ahead, Chartsiri indicated that the next two years will be crucial, filled with both risks and opportunities. Investments flowing into the region, particularly in AI and sustainability initiatives, are expected to significantly transform Thailand, positioning it as a leader in innovation and global economic growth.
