In the first four months of 2025, a total of 3,921 businesses in Thailand shut down, marking an 8.3% increase compared to the same period last year, according to the Department of Business Development.
Amid concerns raised by lawmakers during this week’s debate on the government’s 3.78-trillion-baht budget for fiscal 2026, the department reported that the total registered capital of closed businesses was 15.99 billion baht.
The industries with the highest closures are:
- General construction: 372 closures, with a registered capital of 652 million baht
- Real estate: 184 closures, with a registered capital of 912 million baht
- Restaurants/eateries: 159 closures, with a registered capital of 391 million baht
Factors contributing to closures include rising household debt reducing consumer spending, global economic volatility, and uncertainty over US trade policies. During the same period, 30,148 new businesses were registered, representing a 4.4% decrease of 1,385 registrations from early 2024.
The sectors with the most new registrations are:
- General construction: 2,394, with a registered capital of 5.1 billion baht
- Real estate: 2,047, with a registered capital of 7.83 billion baht
- Restaurants/eateries: 1,237
Kasikorn Research Centre (K-Research) forecasted that more Thai factories may close this year than in the past two years, citing a weakening manufacturing sector and ongoing economic difficulties.
The four-day budget debate in the House of Representatives is set to conclude with a vote on the first reading scheduled for Saturday at 6 p.m.
