Japan invests over 100 billion baht in Thailand's future!

Japan invests over 100 billion baht in Thailand's future!

Something exciting is happening in the Thai economy: Japan announces that it wants to invest over 100 billion baht in Thailand. These investments, led mainly by the automotive sector, are also expected to include electronics and digital businesses. Board of Investment (BOI) Secretary-General Naruttham Teodsathirasak met with Ichiro Abe, President of JETRO Bangkok, and Hiroyasu Sato, President of the Japan Chamber of Commerce on February 2, 2026 to discuss these plans. A survey was also presented that was completed by over 520 Japanese companies in Thailand and provides insights into their economic expectations.

The survey results show that the majority of respondents are confident: many Japanese companies expect the Thai economy to strengthen in the first half of 2026 compared to the last six quarters. In particular, a recovery in production and consumption was cited as a driving factor. In which area can we expect particularly positive developments? Companies seem particularly optimistic in the automotive, electronics, chemicals, food, retail and financial sectors.

Investment plans and challenges

A staggering 23% of Japanese companies surveyed plan to increase their investment in Thailand this year, while 35% expect exports to increase. Additionally, 26% are considering opening regional offices in Thailand. It is also exciting that 44% of companies do not feel any significant influence from the US reciprocal tariffs, while 26% report adverse effects in this regard. How do companies deal with this? 54% of companies said they were adapting their strategies to deal with tariff measures - including price adjustments and entering new markets. Interestingly, 67% of companies reported that they were not significantly affected by the recent closure of the Thai-Cambodia border, while 25% were affected by logistical and production challenges. To counteract these difficulties, many companies switch to sea or land transport through Laos and Vietnam.

Another aspect are the suggestions from Japanese companies to improve the investment climate in Thailand. They are calling for, among other things, incentives for domestic consumption, solutions to household debt, an improvement in tax refund processes and the expansion of transport infrastructure. It appears that the demands are falling on fertile ground, as the BOI has already signaled that it will intensify cooperation with Japanese investors to improve the quality of investments and increase Thailand's long-term competitiveness.

The future in sight

The year 2025 has already been a resounding success for Japanese investment in Thailand, with 311 projects worth over 119 billion baht, an increase of 146% compared to the previous year. Particularly in the automotive sector, which increased 57% at 28.3 billion baht, as well as in the electronics and household appliances sector, which is also strong at 24.3 billion baht, up 121%.

Another exciting trend is in the digital sector, where investments have jumped from 42 million baht in 2024 to over 7.6 billion baht in 2025, primarily due to larger data center projects. The many notable investment projects, which also include aircraft parts, high-grade steel, food and beverage manufacturing and renewable energy, underscore Japanese investors' openness to Thailand's opportunities.

Despite global uncertainties, Japanese investors remain confident and continue to view Thailand as a stable location for long-term investments - not least due to the large number of over 6,000 Japanese companies already operating in Thailand. These developments are promising and could bring further positive impulses to the Thai economy in the future. The beauty of it? It's just the beginning!

For more information, read the detailed reports on Thai Rath.