Japan Investment in Thailand Reaches 113 Billion Baht in 2028
BOI reports Japanese investment applications hit 302 projects worth 113700 million baht in 2028, led by automotive and electronics upgrades.
Stock photo for illustration only, not from the actual event
- Japanese investors submitted 302 project applications worth over 113,700 million baht in 2028.
- Focus shifts toward upgrading existing facilities with automation, clean energy, and advanced technology.
- Major automakers including Isuzu, Mazda, Mitsubishi, and Honda invest heavily in hybrids and EVs.
- Panasonic establishes ASEAN's first MEGTRON material production facility for digital and AI markets.
Japanese investors submitted a total of 302 project applications for investment promotion in Thailand during 2028, representing a combined investment value of over 113,700 million baht. This marks a more than twofold increase compared to the previous year and stands as one of the highest volumes of Japanese investment recorded in the country.
The Board of Investment (BOI) explained that these funds do not represent greenfield startups, but rather reinvestments leveraging production bases built by Japanese firms in Thailand over several decades. The focus centers on technological upgrades, productivity enhancement, and higher-value products to navigate global industrial transitions, reinforcing investor views of Thailand as a second home.
Narit Therdsteerasukdi, Secretary General of the BOI, stated that Japan has long remained a vital investment partner instrumental in shaping Thailand's industrial supply chain, particularly in automotive, electronics, electrical appliances, and machinery sectors. Current investments are transitioning from traditional capacity expansion toward technology upgrades aligned with global trends.
Stock photo for illustration only, not from the actual event
Categorized by industry, the automotive and parts sector recorded application values of 28,310 million baht, expanding by 57 percent year-on-year. Electronics and electrical appliances reached 19,378 million baht, up 76 percent, while agriculture and food reached 4,069 million baht, up 54 percent. Logistics and services surpassed 1,468 million baht, more than doubling from the previous year, alongside notable expansions in digital and aerospace sectors.
This upward trajectory aligns with the Japanese Chamber of Commerce (JCC) survey for the first half of 2026 involving 504 respondents, which showed that 23 percent of Japanese companies plan to increase investments in Thailand, while 48 percent intend to maintain current levels through machinery upgrades, clean energy adoption, and digital integration.
The preference among Japanese investors for brownfield upgrades over new greenfield setups highlights Thailand's deeply entrenched industrial supply chain and robust infrastructure. This strong foundation enables a smooth transition toward electric vehicles and advanced electronics without requiring entirely new manufacturing ecosystems from scratch.
Such confidence is clearly reflected through major commitments, including Isuzu receiving approval for over 15,000 million baht to upgrade pickup production with automation, robotics, and clean energy to meet Euro 6 standards. Mazda secured 7,400 million baht for Mild Hybrid Electric Vehicles, while Mitsubishi Motors announced an additional 16,000 million baht investment by 2030 for the All New Pajero, and Honda committed 12,000 million baht by 2029 to produce eight vehicle models in Thailand outside Japan.
"Japan has long been a key investment partner for Thailand with high potential to grow alongside future industries."
Board of Investment (BOI)
Source: Techsauce
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