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Thailand’s newly formed government confronts a challenging economic landscape marked by high household debt, inefficient investments, and restrictive trade policies. Bold reforms are essential to draw in future-focused industries and ensure sustainable growth.

Key Points

• The conservative Bhumjaithai party won a decisive victory in February 2026, campaigning on stability, but inherited an economy still struggling to recover from the pandemic.
• GDP growth is forecast at just 1.6% for 2026 — the lowest in ASEAN — due to constrained public finances, unproductive investment, and a strong baht eroding export competitiveness.
• While exports surged in 2025, especially electronics to the U.S., tariff uncertainty, Section 301 investigations, and inefficient allocation of capital hinder long-term gains.
• Liberalising foreign ownership (e.g., amending the Foreign Business Act), opening key service sectors (legal, logistics), and joining the CPTPP are critical to attract green manufacturing and high-value industries.
• Thailand’s 14 FTAs cover only 18 markets, with low utilisation due to complex rules of origin — unlike Vietnam, which has leveraged CPTPP to expand exports.

Without structural reforms beyond stimulus, Thailand risks missing out on global supply chain shifts and future industrial investment, leaving it economically stagnant despite short-term export gains.

The Commerce Ministry has announced plans to remove 10 service sectors — from software development to petroleum exploration — from the restricted list, which is a step in the right direction.

The sectors that have been opened do not include those critical to manufacturing firms, such as legal, accounting, and logistics services, which remain heavily restricted. According to the OECD, Thailand ranks among the most restrictive countries in terms of barriers to services trade. Without liberalizing these sectors, even the most generous investment incentives will find it challenging to attract future-focused industries.

Access to export markets is another critical area needing improvement. Thailand currently holds 14 free trade agreements (FTAs), granting preferential access to just 18 markets—significantly fewer than Vietnam’s broader market reach. Additionally, FTA utilization remains a challenge, as nearly 20% of eligible exports fail to leverage preferential terms due to the high costs or complexities of complying with rules of origin, particularly for smaller firms.

Thailand relies heavily on imported inputs, which poses a vulnerability as rules of origin become stricter due to geopolitical pressures. Joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could mitigate this risk by broadening the network of countries, such as Japan, whose inputs are eligible under origin requirements, while also enhancing market access. Vietnam, which joined the CPTPP in 2019 and depends on foreign inputs even more than Thailand, has experienced a significant surge in exports to new markets since its accession.

Source : Thailand’s economic recovery depends on opening up | East Asia Forum

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HONG KONG — Li Auto Inc. shares climbed more than 3% Friday on the Hong Kong Stock Exchange, closing at HK$74.20 after adding HK$2.30, as investors cheered a strong March delivery rebound and anticipation for the upcoming launch of the refreshed flagship Li L9 amid a competitive but recovering Chinese new energy vehicle market.

The Beijing-based automaker, listed as HKG:2015, saw its stock rise on elevated trading volume as the company resolved production bottlenecks for its battery electric vehicle lineup and pushed forward with technology upgrades, including advanced autonomous driving systems unveiled at NVIDIA’s GTC 2026 conference. The move extended recent gains following positive March figures that helped lift first-quarter deliveries above internal guidance.

Li Auto delivered 41,053 vehicles in March 2026, marking a 12% increase from the same month a year earlier and a sharp sequential jump after earlier softness. The performance pushed the company’s cumulative deliveries past 1.635 million vehicles since inception. Notably, the Li i6 pure electric SUV surpassed 24,000 monthly units once production constraints eased, signaling improving momentum in Li Auto’s BEV transition.

For the first quarter overall, Li Auto delivered approximately 95,142 vehicles, a modest 2.5% year-over-year gain that exceeded its earlier guidance range of 85,000 to 90,000 units. The rebound came despite ongoing price competition and a challenging 2025, when full-year deliveries fell about 19% to roughly 406,343 vehicles amid margin pressure and slower demand for some extended-range electric vehicle models.

The company has set an ambitious target for 2026, aiming for around 20% growth in vehicle sales, which would translate to roughly 490,000 units. Management has emphasized a “3+2” strategy focusing on overhauling its retail network, successfully launching the next-generation Li L9, and accelerating battery electric vehicle sales. The all-new Li L9, scheduled for official launch in the second quarter, is expected to feature significant upgrades including a larger battery for over 400 km of pure electric range, an enhanced chassis, and cutting-edge computing power.

Analysts and investors view the refreshed L9 as a potential catalyst. The model is projected to incorporate Li Auto’s self-developed M100 chip and advanced smart cockpit features, with some variants boasting up to 2,560 TOPS of computing power — far exceeding many competitors. A higher-priced “Livis” trim has also been previewed, targeting premium family buyers seeking luxury and intelligent driving capabilities. Orders for certain current L-series models were paused in March ahead of the refresh, a common industry tactic to clear inventory and build excitement for new versions.

Li Auto has also been investing heavily in artificial intelligence and autonomous driving technology. The company unveiled its MindVLA autonomous driving foundation model at NVIDIA GTC 2026, pairing hardware advances with in-house software to differentiate its vehicles in a crowded market. These efforts align with broader industry shifts toward AI-native vehicles, where Li Auto aims to blend extended-range reliability with pure electric innovation and intelligent features.

On the financial front, Li Auto reported a challenging 2025, with revenue declining about 22% and net income dropping sharply. Fourth-quarter vehicle margins improved sequentially to 16.8%, though still below prior peaks due to pricing competition. The company returned to modest profitability in the quarter despite lower volumes. For the first quarter of 2026, it had guided revenue between RMB 20.4 billion and RMB 21.6 billion, reflecting the impact of softer early-year deliveries before the March uptick.

To signal confidence, Li Auto announced a US$1.0 billion share repurchase program in March 2026, with initial buybacks executed on both Nasdaq and Hong Kong exchanges. Executives described the move as reflecting strong belief in the company’s long-term value creation. The program comes alongside ongoing efforts to optimize its sales network through a “store partner” profit-sharing model aimed at boosting retail performance.

Li Auto’s portfolio spans extended-range electric vehicles (EREVs) like the popular L6, L7, L8 and L9 families, alongside pure EVs including the Li i6, Li i8 and the flagship Li MEGA MPV. The company has positioned itself as a leader in premium smart EVs tailored for families, emphasizing spacious interiors, advanced safety systems and convenient energy solutions. Its nationwide supercharging network exceeded 4,000 stations by early 2026, supporting over 1.45 million charging sessions during the Spring Festival travel peak alone.

Despite domestic headwinds, Li Auto has begun modest international expansion, introducing select L-series models in markets such as Egypt, Kazakhstan and Azerbaijan. While China remains the core focus, these early steps signal ambitions to diversify beyond the world’s largest EV market.

The Chinese EV sector continues to face intense competition from rivals including BYD, NIO and XPeng, compounded by price wars and fluctuating consumer demand. Li Auto’s hybrid approach — combining range-extended powertrains with growing BEV offerings — has helped it maintain appeal among buyers concerned about charging infrastructure. However, gross margins have faced pressure from higher raw material costs and promotional pricing.

Analysts remain mixed but generally constructive on longer-term prospects. Consensus price targets cluster around levels implying upside from current valuations, with some highlighting the potential for margin recovery as new products ramp up. Morgan Stanley recently trimmed its target but maintained an overweight rating, citing execution risks around the L9 launch while noting expected benefits from AI investments and product cycle improvements. The stock trades at a relatively low multiple compared to some growth peers, though volatility persists amid broader China EV sentiment.

Li Auto also released its 2025 ESG Report and inaugural climate-related disclosures on April 10, underscoring commitments to sustainable manufacturing and supply chain practices as it scales production. The company operates with a vertically integrated model focused on user value, from vehicle design to software updates delivered via over-the-air (OTA) technology. Recent OTA version 8.3 brought enhancements to its VLA driver model, smart cockpit and electric functionality.

Looking ahead, attention will turn to the May earnings report, where management is expected to provide more color on Q2 guidance, L9 production ramps and BEV contribution. The company plans to launch an all-new Li i9 battery electric SUV in the second half of 2026, further broadening its pure EV lineup.

Challenges remain, including sustaining delivery growth in a high-competition environment, managing R&D expenses that have risen with AI and autonomy pushes, and navigating potential regulatory or subsidy shifts in China’s NEV sector. Supply chain stability and raw material costs will also influence margins.

Friday’s trading in Hong Kong showed strong participation as the stock tested recent resistance levels following the March delivery news. Technical observers noted improving momentum, though the shares remain well below 2025 peaks amid last year’s delivery slowdown.

Founded in 2015, Li Auto has grown rapidly by targeting the premium family segment with vehicles that combine the convenience of gasoline range with electric efficiency and smart features. Under CEO Xiang Li, the company has prioritized user experience, with high net promoter scores for models like the Li i8.

As China’s EV market matures and global interest in intelligent vehicles grows, Li Auto’s blend of hardware innovation, software differentiation and family-focused design positions it as a resilient player. Success with the new L9 and continued BEV momentum could help the company reclaim stronger growth trajectory in 2026 and beyond.

Investors will closely monitor execution in the coming quarters, particularly whether the refreshed lineup can drive order backlogs, stabilize pricing and deliver on margin targets. For now, the March rebound and technology roadmap have provided fresh optimism in a sector where product cycles and innovation often dictate market leadership.

Peter Moore has called on the governing body to “sort out” their structures ahead of the summer spectacular

Former Liverpool CEO Peter Moore has expressed his disappointment with FIFA’s current ticketing strategy for the 2026 World Cup. Moore is far from the first in the space to voice concerns, as watching football in person becomes increasingly difficult for the average fan.

Moore, who served as Liverpool’s CEO from 2017 to 2020, has called on FIFA to reconsider its ticketing approach, stating that it is “completely detached from the very soul of football.”

Moore has urged FIFA to “sort out” its ticketing strategy before it’s too late. He expressed concern that the current model prioritises revenue over the reality of the average, passionate football supporter. These are the fans who save for years to attend the World Cup, travelling across continents and bringing the spirit, colour, and noise to the games.

Moore, who has attended five World Cups, described them as “life chapters” about culture, connection, and unity through football. He emphasised that the issue of ticket pricing carries significant weight given his extensive experience in the sports and entertainment industries.

During his career, Moore has held senior roles at Reebok, Sega, Microsoft, and Electronic Arts (EA). He recalled standing “shoulder to shoulder” with FIFA during its 2015 controversy when senior officials were charged with bribery, racketeering, and money laundering. Despite many sponsors distancing themselves from FIFA, EA continued to work with them, keeping millions of fans connected to football and the World Cup during a time of low trust in the organisation.

The controversy of dynamic pricing

FIFA’s ticket pricing for the upcoming World Cup has already sparked controversy. The Football Supporters’ Association (FSA) has criticised the ticket pricing policy as excessively expensive and unfair to fans. The introduction of dynamic pricing, a model that the FSA has urged FIFA to abandon, is one of the main reasons behind the increase.

A recent investigation revealed the high costs fans would face, including flights, tickets, and accommodation, to attend the World Cup. Moore echoed the FSA’s sentiments, stating that the current approach feels detached from the essence of football. He argued that football should not be a luxury product reserved for the highest bidder, but rather, it belongs to the people.

The future of FIFA ticket pricing strategy

While public criticism may not be enough to force FIFA to reconsider its pricing model, the results it produces might. FIFA claimed in January to have received half a billion ticket requests for the World Cup.

If a large proportion of tickets are held outside genuine fan demand, there is a risk that stadiums may not be full for many matches. This could pose a significant issue for FIFA, even if revenues reach record levels, especially given its ambition to deliver the biggest and best World Cup in history.

Moore concluded by saying, “The World Cup should unite the world, not divide it by price. Football deserves better. And so do the fans. Come on, FIFA, sort this out… It’s not too late.”