BOI & JETRO Highlight THB 396B Japanese Investment
BOI reports THB 396B in Japanese investment over 5 years, with new funds focusing on upgrading existing factories in Thailand.
Stock photo for illustration only, not from the actual event
- Japanese investors submitted 1,380 project applications worth over THB 396,000 million in 5 years.
- Survey shows 59% of Japanese firms plan to replace machinery to boost efficiency.
- BOI and JETRO discuss green energy and high-skilled workforce development.
The Thailand Board of Investment, or BOI, has highlighted ongoing business expansion by Japanese enterprises following recent high-level discussions with the Japan External Trade Organization in Bangkok and the Japanese Chamber of Commerce, Bangkok. Data spanning the past five years from 2021 through the first half of 2026 reveals that Japanese investors submitted a total of 1,380 project applications for investment promotion, representing a combined value exceeding THB 396,000 million.
The official meeting took place on August 13, 2026, hosted by Narit Therdsteerasukdi, Secretary General of the BOI, who welcomed Ichiro Abe, President of JETRO Bangkok and Regional Representative for Southeast Asia, alongside Hiroyasu Kondo, President of the Japanese Chamber of Commerce, Bangkok, and their delegation. During the session, the Japanese representatives presented their economic outlook survey for the first half of 2026, gathering insights from 504 Japanese companies operating across manufacturing and service sectors in Thailand.
The survey results indicated that the business sentiment diffusion index for the first half of 2026 stood at -6, dropping from 0 in the latter half of 2025 due to mounting pressures from raw material prices and logistics costs driven by Middle Eastern geopolitical situations. Nonetheless, demand within the semiconductor sector alongside investments in factories and machinery remained resilient, with the index expected to stabilize through the second half of the year amid ongoing growth in electronics and digital industries.
Stock photo for illustration only, not from the actual event
Regarding investment directions, the survey found that 23 percent of Japanese companies planned to increase their investment spending in 2026, while 48 percent intended to maintain their current levels. The primary focus centers on upgrading existing production bases, with 59 percent planning machinery replacements, 31 percent targeting operational improvements, and 22 percent investing in digital transformation initiatives to enhance overall productivity.
The strategic shift among Japanese firms from establishing brand-new facilities toward upgrading existing machinery and embracing digital tools illustrates Thailand's transition into smart manufacturing. This evolution aligns seamlessly with the BOI's agenda to promote targeted high-value industries, helping the country navigate economic shifts through sustainable practices and reduced carbon footprints.
Furthermore, statistics from the BOI's Smart and Sustainable Industry promotion measures between 2023 and the first half of 2026 show that over 400 projects with Japanese shareholding applied for promotion, totaling more than THB 55,000 million in capital investments. These projects span energy conservation, environmental impact reduction, and the integration of automation and robotics systems.
"Moving forward, the critical priority is not merely maintaining existing investment bases, but encouraging an upgrade toward higher-value activities by leveraging technology and innovation to drive efficiency, develop talent, and transition toward sustainable production."
Narit Therdsteerasukdi
Source: Techsauce
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