BANGKOK, Thailand – The government reports that Japanese companies in Thailand are beginning a new production-upgrade cycle, which creates opportunities for Thai businesses to supply higher-value technologies, products, and services. Deputy Government Spokesperson Lalida Persvivatana stated on August 17, 2026, that recent discussions among the Thailand Board of Investment (BOI), the Japan External Trade Organization (JETRO), and the Japanese Chamber of Commerce, Bangkok (JCC) highlighted a stronger focus on machinery replacement, automation, digital technology, energy efficiency, and productivity.
Between 2021 and mid-2026, Japanese companies submitted 1,380 investment-promotion applications totaling over 396 billion baht. This figure reflects cumulative applications over five and a half years, not new investment announced at one time. A survey of 504 Japanese companies in Thailand found that 432 responded about their 2026 investment plans. Of these, 59% (256 companies) planned to replace existing machinery, 31% (132 companies) aimed to improve production efficiency, and 22% (96 companies) intended to invest in digital transformation.
From 2023 to mid-2026, Japanese-owned companies submitted applications for over 400 projects valued at more than 55 billion baht under the BOI’s Smart and Sustainable Industry measures. These upgrades are expected to increase demand for replacement parts, control systems, automation, industrial software, maintenance, and energy-saving technologies. Thai suppliers can move beyond general component manufacturing into higher-value segments by enhancing quality, standards, delivery reliability, and compatibility with Japanese production systems. The deputy spokesperson stated that the BOI will continue to work with JETRO, JCC, and Japanese businesses to support technology upgrades, workforce development, clean-energy access, and increased Thai participation in high-value supply chains. (NNT)
