BOI Partners With Japanese Business Groups to Boost Thailand Investment
Thailand's BOI pledges continued support for Japanese investors, targeting over 390 billion baht in cumulative investment over the next five years amid cautious near-term sentiment but strong semiconductor demand.
The Board of Investment (BOI) met with the Japan External Trade Organization (JETRO) and the Japanese Chamber of Commerce in Bangkok to reaffirm support for Japanese companies maintaining and expanding their investment base in Thailand. According to BOI Secretary-General Nakharin Tedsathirsakdi, on August 13, 2025, JETRO Bangkok Chairman Abe Ichiro and Southeast Asia regional representatives, along with Japanese Chamber of Commerce Bangkok President Konda Hiroyasu and delegation members, discussed measures to support Japanese firms' continued confidence in Thailand over the next five years, targeting over 390 billion baht in cumulative investment.
Over the past five years (2020 to mid-2025), 1,380 investment promotion projects worth approximately 396 billion baht have received approval. A survey of 504 Japanese companies covering both manufacturing and service sectors revealed cautious sentiment toward short-term economic conditions, with the Diffusion Index at minus 6, down from zero in the second half of 2024, due to pressure from raw material prices and shipping costs. However, demand in the semiconductor industry remains strong, with electronics and digital sectors expected to continue expanding.
Regarding investment plans, 23 percent of Japanese companies intend to increase investment in 2025, while 48 percent plan to maintain current levels, focusing on upgrading existing production base efficiency. Over 59 percent plan to replace machinery, 31 percent will improve machine efficiency, and 22 percent will invest in digital transformation. Between 2023 and mid-2025, over 400 Japanese-backed companies submitted applications for the Smart and Sustainable Industry promotion scheme, representing more than 55 billion baht in investments.
Japanese companies are requesting government support in tax and finance incentives (29 percent), domestic market promotion (26 percent), and market expansion to third countries through free trade agreements (24 percent), reflecting a desire for greater business flexibility amid global trade uncertainty. The BOI will collaborate with JETRO, the Japanese Chamber of Commerce, and Japanese businesses to retain existing investments while promoting higher-value-added activities focused on technology and innovation, labor skills development, clean energy, and improved business conditions to enable continued Japanese business expansion from Thailand.
