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The CLMV countries have attracted increasing attention from foreign investors following the formal establishment of the Asean Economics Community (AEC) in 2015.

Construction contractors can look forward to an improving business environment from 2024-2026, with growth driven by an expected 3.0-4.0% annual expansion in construction spending. This will be led by 3.5-4.0% growth in government spending on construction, guided largely by the Action Plan on Thailand Logistics Development 2023-2027. The focus will therefore be on megaprojects, most notably those connected to the development of the Eastern Economic Corridor (EEC).

The construction contractor business is expected to grow at an average rate of 2.8–3.3% per year during 2027–2029. The main growth driver will be public construction investment

The construction contracting sector is projected to expand at a modest average rate of 2.0–2.5% annually during 2025–2027.

The Thailand Industry Outlook report evaluates the attractiveness of selected Thai industries to complement the credit evaluation process for the bank’s clients over the next 3 years (2021-2023). The report considers a range of factors that would influence each industry over this period. These include the broad competitive environment (e.g. trends in trade and the global economy, structural changes occurring at global level, and economic outlook for Thailand), as well as sector-specific variables (e.g. industry structure, Thai industrial competitiveness, and ongoing regulatory changes). We look at the players’ ability to cope with uncertainties, generate revenues, and service debt.

The construction industry is expected to recover over the next 3 years, with total construction spending forecast to rise by 4.5-5.0% in 2021 and then by 5.0-5.5% in 2022-2023. A major driver will be public-sector spending on infrastructure megaprojects, especially in the Eastern Economic Corridor, where investment in government-backed projects will encourage crowding-in of private-sector investment (e.g., in industrial estates). Beyond this, the gradual recovery of the Thai economy will also support greater investment in residential accommodation and commercial properties. And, there will be new opportunities in neighboring countries as their governments continue to improve national infrastructure in response to continued economic growth and urbanization.

During 2019-2021, the construction business is likely to grow at an accelerated rate in 2019

Overall demand for construction materials is expected to recover gradually over the 2026–2028 period. In particular, demand for structural materials will be supported by new investment projects and large-scale infrastructure developments