Advanced manufacturing offers a pathway to higher productivity and quality jobs
Bangkok — Thailand faces the challenge of lifting growth in an increasingly competitive global environment. New analysis from the World Bank’s Thailand Economic Monitor highlights advanced green manufacturing as a promising pathway to reinvigorate the economy. By expanding into higher-value, low-carbon industries such as electric vehicles, solar equipment, and energy-efficient appliances, Thailand can boost productivity, create jobs, and adapt to shifting global demand.
Thailand’s economic growth is projected to slow to 1.6 percent in 2026, reflecting weaker global trade, high household debt, and slower tourism recovery. Growth is expected to recover to 2.2 percent in 2027 as global conditions improve, private investment strengthens, and FDI projects begin to translate into actual inflows.
Manufacturing remains central to Thailand’s economy, accounting for 25 percent of GDP and 16 percent of employment, or 6.2 million jobs. The report finds that Thailand’s exports of green goods already account for nearly 10 percent of total exports and are, on average, more technologically advanced than non-green products.
“Advanced green manufacturing is one of the industries of the future for Thailand and it offers a clear pathway to power growth, boost resilience, and deliver high-quality jobs,” said Melinda Good, World Bank Division Director for Thailand and Myanmar. “As Thailand shapes its next growth model, the upcoming IMF-World Bank Group Annual Meetings in Bangkok will be especially timely.”
The report highlights electric vehicles and parts, solar photovoltaic components, and energy-efficient cooling technologies as green value chains where Thailand has strong existing capabilities and scope to move into higher-value segments. Thailand’s air conditioners already account for close to a third of the global market, or 10 percent of global exports. While in the automotive sector, most auto parts currently produced in Thailand can continue to be used in EVs, helping preserve jobs while upgrading production.
To unlock these opportunities, the report emphasizes policies that attract investment, support technology transfer, strengthen local suppliers, and provide clear incentives for low-carbon production. Together, these measures can help green manufacturing become a new engine of sustainable and inclusive growth for Thailand.
“Thailand already has many of the building blocks needed to succeed in advanced green manufacturing and significant untapped potential,” said Kiatipong Ariyapruchya, World Bank Senior Economist for Thailand. “Our analysis shows that expanding advanced green manufacturing could increase GDP by an additional 2.9 percent by 2035. The opportunity now is to move beyond assembly toward higher-value production.”
The report also calls for reforms to strengthen Thailand’s growth foundations, including greater competition, skills upgrading, and fiscal rebalancing. Improving competition in services and infrastructure can raise productivity and attract better investment, while industry-aligned training and reskilling will help workers move into fast-growing sectors such as EVs, advanced electronics, and green manufacturing. Gradually rebuilding fiscal space through more efficient spending and a broader revenue base will support these reforms and help Thailand capture new growth opportunities.
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