Thailand and ADB

ADB helps Thailand maintain prosperity and sustainability through knowledge support, policy advice, finance solutions, and technical assistance to achieve the country’s national strategic objectives.

ADB's Work in Thailand

After the May 2023 elections, the new Government of Thailand delivered its policy statement in September outlining measures to stimulate the country’s economy with tourism and private consumption as the main engines of economic growth. The Asian Development Bank (ADB) has supported and collaborated with Thailand to ensure its continued development in alignment with government policies. As Asia and the Pacific’s climate bank, ADB is focusing its support on combating climate change, catalyzing funds from all sources including capital markets, and incorporating innovative finance solutions into projects. 

ADB’s strategic engagement with Thailand, as outlined in the country partnership strategy, 2021–2025, focuses on leverage its knowledge, advisory, lending, and technical assistance windows via One ADB approach. This collaborative approach will help the country create innovative and climate-resilient projects, capacities, financial instruments, and policy frameworks that can attract green finance to support the country’s climate targets. Key initiatives include: (i) issuance of green, social, sustainable, and other labeled bonds to help member countries of the Association of Southeast Asian Nations (ASEAN) raise funds; (ii) Zero Source Pollution to develop water management-related project concepts in cities and share knowledge throughout ASEAN; (iii) electric vehicles for public transit, including project concept development and knowledge sharing; and (iv) the Nature Solutions Finance Hub to help create bankable, scalable, and nature-based solution projects in Asia and the Pacific. These initiatives, supported by ADB’s technical assistance, help create a foundation for future projects.

ADB is processing three sovereign lending projects for Thailand involving climate-smart medical excellence centers, climate-resilient connectivity, and climate change adaptation. These projects will help strengthen the country’s competitiveness, enhance connectivity, mitigate and prevent the impact of climate change, and support the well-being of all Thai people. Various capacity building workshops for relevant government sectors were also conducted throughout 2023 to increase counterparts’ understanding of ADB processes and guidelines. 

As of 31 December 2023, ADB has committed 239 public sector loans, grants, and technical assistance totaling $7.4 billion to Thailand. 

Cumulative sovereign and nonsovereign loan and grant disbursements to Thailand amount to $7.52 billion. These were financed by regular and concessional ordinary capital resources and other special funds. 

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in Thailand as of 31 December 2023 amounted to $1.1 billion representing 9.30% of ADB’s total private sector portfolio. 

Operational challenges. Thailand’s 13th National Economic and Social Development Plan (2023–2027) promotes inclusive and sustainable growth, and the creation of long-term innovative investments to boost international competitiveness. However, Thailand’s economic growth has been impeded by global economic shocks, disasters triggered by natural hazards, socio-political tensions, and relatively low investment. Other challenges to growth include persistent inequality, a weak education system, environmental degradation, and an aging population. ADB is working with Thailand to help formulate and implement the structural development needed to address the country’s key challenges. Thailand is selective in its external borrowing, so ADB aims to add value to operations through the piloting of innovative approaches and initiatives that can also deliver regional benefits.

Photo: Thailand Resident Mission (TRM)/ADB
General Photo – Thailand Water and Irrigation System Photo: Thailand Resident Mission (TRM)/ADB
 

Knowledge Work

ADB’s knowledge support and related technical assistance to Thailand is a major value addition and is always aligned with the country partnership strategy. The bank’s knowledge sharing and capacity-building activities are providing high-end technical expertise and enabling the sharing of knowledge solutions. 

Public and private sector entities in Thailand have benefited from ADB’s shared skills and know-how in areas such as green, social, and sustainable finance mobilization; urban public transport network integration; climate-resilient agriculture; bio-circular-green economy; and domestic resource mobilization. The bank’s recent technical support aims to build a better understanding of climate change impacts and institutional strengthening of the government’s new climate change department.

Shareholding and Voting Power

Number of Shares Held
144,522 (1.358% of total shares)

Votes
183,636 (1.381% of total membership, 2.12% of total regional membership)

*Overall capital subscription
$1.94 billion

*Paid-in capital subscription
$96.98 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Srettha Thavisin
ADB Alternate Governor: Lavaron Sangsnit
ADB Director: Supak Chaiyawan (Thailand)
ADB Alternate Director: Nurussa’adah Muharram (Brunei Darussalam)
ADB Director’s Advisors: Azmin Bin Ishak (Malaysia) and Jessica Lim (Singapore)

 

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing. 

Cumulative cofinancing commitments in Thailand: 

  • Sovereign cofinancing: $821.21 million for 7 investment projects and $18.71 million for 30 technical assistance projects since 1977
  • Nonsovereign cofinancing: $6.16 billion for 24 investment projects since 2006

 

Future Directions

ADB’s support to Thailand will move beyond the transport sector to more actively include the finance, health, urban, and water sectors, including flood protection. Support will focus on climate change adaptation, electric vehicle transport, derisking vehicles, equitable health care, thematic bonds, and regional cooperation. ADB will follow an integrated approach for future projects, combining ADB funding with capacity building and innovative financing, including cofinancing. ADB will also continue to focus on selective interventions—predominantly policy advice, capacity building, and other knowledge support. 

Reflecting Thailand’s position as an upper middle-income country, the country partnership strategy and ensuing ADB strategic plans focus on a value-adding and innovative finance approach to help strengthen the country’s competitiveness, climate resilience, and connectivity. Under the One ADB approach, the combined impact of sovereign and nonsovereign projects and technical assistance-funded initiatives in Thailand is expected to boost opportunities, knowledge, and expertise not only within the country but also across Southeast Asia.

This article was originally published in the ADB and Thailand: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

Contacts

Thailand Resident Mission
23rd Floor, The Offices at Central World
999/9 Rama 1 Road, Pathumwan
Bangkok 10330, Thailand
Tel: +66 2 263 5300
Fax: +66 2 263 5301

E-mail 
www.adb.org/thailand

Ministry of Finance
Rama VI Road, Phayathai
Bangkok 10400, Thailand
Tel: +66 2 273 9020
Fax: +66 2 273 9168

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