Thailand’s Board of Investment (BOI) reported a sharp rise in Japanese investment interest in 2025, with applications surging 146% year-on-year to a total value of 119 billion baht. The increase comes as a survey by JETRO Bangkok indicates improving business sentiment among Japanese firms operating in Thailand for the first half of 2026.
BOI secretary-general Narit Therdsteerasukdi said the JETRO survey found that Japanese companies expect Thailand’s economic conditions to improve in early 2026, marking the most optimistic outlook in the past six quarters.
The survey, conducted between November and December 2025 among more than 520 Japanese firms, attributed the brighter sentiment to a recovery in production and domestic consumption, as well as emerging business opportunities across multiple industries. Sectors forecast to see stronger performance include automotive, electronics, chemicals, food, trading, and financial services.
According to the survey, 23% of respondents plan to expand investment in Thailand this year, while 35% expect export growth. Additionally, 26% are considering establishing regional headquarters in the country.
On external risk factors such as US reciprocal tariff measures, 44% of firms said they have not been affected, while 26% reported being, or expecting to be, impacted. Most companies (54%) indicated they would maintain their current business strategies, while others cited potential adjustments such as passing on higher costs, diversifying into domestic or alternative markets, and improving operational efficiency. The findings suggest that while investors remain cautious amid global trade uncertainties, confidence has not significantly weakened.
Regarding the temporary closure of Thai-Cambodian border checkpoints, more than 67% of surveyed firms said there was no major impact on their operations. However, 25% reported logistical and production disruptions due to previous reliance on cross-border land transport. In response, affected companies shifted to sea freight or rerouted shipments through Laos and Vietnam.
The survey also highlighted key areas where Japanese investors want to see policy improvements to strengthen Thailand’s investment environment. Priorities include boosting domestic consumption, addressing high household debt, improving the efficiency of tax audits and refund processes, and upgrading transportation infrastructure. Respondents also expressed support for continued economic stimulus measures combined with long-term infrastructure development to enhance competitiveness.
Narit said the positive sentiment reflected in the survey is consistent with the strong growth in Japanese investment applications last year. In 2025, Japanese firms submitted 311 investment project applications in Thailand, a 17% increase from the previous year, with total pledged investment value exceeding 119 billion baht — up 146% year-on-year. The majority of investments were concentrated in the automotive and auto parts, electronics, and digital sectors, underscoring Thailand’s position as a key production hub for Japanese companies in ASEAN.