BOI Partners With JETRO and JCC to Upgrade Japanese Production Bases as Investment Requests Reach 396 Billion Baht Over Five Years

Brickinfo News Agency – The Thailand Board of Investment (BOI) has held discussions with the Japan External Trade Organization (JETRO) Bangkok and the Japanese Chamber of Commerce (JCC) Bangkok to support the continued expansion of Japanese business operations in Thailand. Data from 2021 to the first half of 2026 shows that Japanese investors submitted 1,380 applications for investment promotion, representing a total value of over 396 billion baht. The latest survey on Japanese companies operating in Thailand highlights an ongoing effort to modernize production bases through machinery upgrades, efficiency improvements, and digital transformation to maintain competitiveness in global trade.

During a meeting on August 13, 2026, Narit Therdsteerasukdi, Secretary General of the BOI, met with Ichiro Abe, President of JETRO Bangkok and Chief Representative for South East Asia, alongside Hiroyasu Kondo, President of JCC Bangkok. The delegates presented the results of the Business Sentiment Survey of Japanese Corporations in Thailand for the first half of 2026, which surveyed 504 enterprises across manufacturing and service sectors. The survey reported a Diffusion Index (DI) of -6 for the first half of 2026, down from 0 in the second half of 2025, driven by rising raw material prices and transportation costs tied to Middle East tensions. However, demand in the semiconductor industry and investment in plant and equipment remained strong, with the DI expected to stabilize in the second half of 2026 due to continuous expansion in the electronics and digital sectors.

Regarding investment plans for 2026, 23 percent of surveyed Japanese firms plan to increase capital expenditure, while 48 percent intend to maintain current levels. Their investment focus is centered on enhancing existing production facilities, with 59 percent planning to replace machinery, 31 percent aiming to improve machinery efficiency, and 22 percent investing in digital transformation. These initiatives align with the BOI's Smart and Sustainable Industry measure, under which Japanese-owned projects submitted over 400 applications valued at more than 55 billion baht between 2023 and the first half of 2026. These applications cover machine replacements, energy conservation, environmental reduction measures, digital technology integration, automation, and robotics.

Survey responses also identified priority support areas expected from the Thai government. Japanese investors highlighted tax and financial support measures (29 percent), domestic market promotion (26 percent), and the expansion of third-country markets through Free Trade Agreements (24 percent). Concerning global trade policy uncertainty, 42 percent of respondents reported minimal impact from US trade tax policy changes, while 39 percent experienced moderate impact, leading firms to emphasize risk diversification and new market entry. Additional discussion topics included supporting the transition to clean energy via direct power purchase agreements (Direct PPA) and Utility Green Tariff (UGT) mechanisms, high-skilled workforce development under the Skill Bridge program, capital market listings through the BOI to IPO initiative, and mitigating the effects of the Global Minimum Tax via Qualified Refundable Tax Credits (QRTC).

"Japan has long been one of Thailand's vital economic and investment partners, playing a key role in developing the country's industrial base. Moving forward, the focus is not only on maintaining existing investments but also supporting transition into higher value-added activities. This involves utilizing technology and innovation to boost efficiency, developing human resources, and adapting to sustainable manufacturing practices," stated Narit Therdsteerasukdi, Secretary General of the BOI. He added that the BOI remains committed to collaborating with JETRO, JCC, and the Japanese business sector to strengthen long-term economic cooperation.