Thailand attracted record levels of foreign industrial investment in 2025, particularly in EVs, batteries, and electronics. Yet economists warn that much of this investment relies heavily on imported inputs and foreign technology, limiting the spillover benefits to Thai firms and workers. Despite years of attracting foreign manufacturers, Thailand has struggled to develop its own industrial capabilities and move beyond assembly into higher-value production.

Propose one specific policy that would help Thailand capture greater spillover benefits from incoming foreign investment — ensuring that foreign capital genuinely builds Thai industrial capacity rather than simply using it. Explain how your policy works, who benefits most, and acknowledge one reason it has been difficult to implement despite being widely recognized as necessary.