Foreign investment in Thailand hits to THB276 billion in 10 months

Poonpong Naiyanapakorn, director-general of the Department of Business Development at the Commerce Ministry, said that in the first 10 months of 2025 (January–October), a total of 869 foreign-owned businesses were approved to operate in Thailand under the Foreign Business Act 1999.

Of these, 228 businesses were granted foreign business licences, while 641 received certificates to operate.

The combined value of foreign investment during the period reached THB276.736 billion. The top five nationalities investing in Thailand were:

1. Japan accounted for 158 businesses, representing 18% of all foreign enterprises in Thailand, with investment totalling THB78.285 billion. Key sectors included:

• Engineering and technical services, such as mould and equipment design for automotive production, and technical consultancy on manufacturing processes.
• Telematics systems for vehicle management and status monitoring.
• Research and development services for products and appliances for mothers and children.
• Contract manufacturing of goods, including automotive parts, electrical appliance components, construction machinery parts, and coated steel sheets.

2. The United States ranked second with 127 businesses (15%) and an investment of THB4.83 billion, focusing on:

• Advertising services.
• Software, platform design, development, installation, and maintenance.
• Research and development of production formulas for vegetable, fruit, and agricultural products.
• Contract manufacturing of items such as precious metal jewellery and components, automotive electronic parts, DC cables, and alloys for jewellery production.

3. Singapore followed with 126 businesses (14%) and the highest investment value among the top five, at THB92.318 billion, in sectors such as:

• Wood processing for furniture and household goods.
• Software development for sale and/or service provision.
• Installation, maintenance, and repair services for machinery.
• Contract manufacturing of products, including metal and formed metal parts, mapping and ablation system catheters, air filters, and plastic components for industrial use.

4. China came next with 116 businesses (13%) and investment totalling THB25.404 billion, with activity in:

• Wood processing for activated carbon production.
• Custom software development services.
• Scientific testing services, including testing of parts and components for electrical and electronic automotive equipment.
• Contract manufacturing of goods such as natural rubber products, flexible printed circuit boards, formed metal products, and forged steel parts.

5. Hong Kong ranked fifth with 93 businesses (11%) and THB13.198 billion in investment, across sectors including:

• Wood processing for furniture and household products.
• Petroleum drilling services within concession areas in the Gulf of Thailand.
• Software development, including cybersecurity detection and protection systems.
• Contract manufacturing of goods such as rechargeable batteries, compressed biomass fuel products, imaging and audio equipment, and plastic film and packaging.

Year-on-year comparisons show a sharp rise in foreign investment. Approvals for foreign-owned businesses increased by 83 cases (11%) compared with the same period in 2024, while the total value of investment surged by THB115.567 billion (72%).

Foreign investors who received foreign business licences also created 5,364 Thai jobs, up 2,331 positions (77%) from the previous year. Japanese investors continued to lead in both number and investment value, mirroring last year’s trend.

A significant share of investment came through projects promoted under the Board of Investment (BOI). A total of 424 businesses, or 49% of all 869 approvals, were linked to BOI incentives, representing THB210.101 billion, or 76% of all foreign investment value.

This aligns with the government’s strategy to attract foreign investment into future industries, including advanced technology, digital and AI, electric vehicles, clean energy, and agri-food innovation.

The top three BOI-supported business categories were:

1. Contract manufacturing services, such as metal and plastic products and automotive components, support high-value-added production.
2. Trade and Investment Support Offices (TISO), which strengthen Thailand’s role as a regional hub for investment and logistics.
3. Computer-related services, including software development and data centres—key enablers of the digital economy, data centre expansion, and AI services.

Poonpong added that foreign investors continue to show strong interest in Thailand’s Eastern Economic Corridor (EEC).

Between January and October 2025, 253 foreign businesses chose to invest in the EEC provinces, accounting for 29% of all foreign investors nationwide—an increase of two cases (1%) year-on-year.

Foreign investment in the EEC totalled THB90.791 billion, representing 33% of all foreign investment. The main investor groups were:

• China: 65 businesses, THB17.882 billion
• Japan: 57 businesses, THB30.369 billion
• Singapore: 35 businesses, THB20.106 billion
• Other countries: 96 businesses, THB22.434 billion

Key investment sectors in the EEC included:

• Wood processing for household and sanitaryware components
• Engineering services for automotive part design, such as body frames, door structures, dashboards, and seating
• Digital platform development and data centre services
• Contract manufacturing, including printed circuit board assembly (PCBA), industrial plastic components, formed metal parts, and chemical products for industrial use

In October 2025 alone, a total of 99 foreign businesses were approved to operate in Thailand.

Of these, 27 received foreign business licences, and 72 were granted certificates, with a combined investment worth THB23.621 billion.

Most investors came from Singapore, China and Japan, and foreign businesses employing Thai workers under foreign business licences totalled 232 people.

There was also significant technology transfer, with specialised know-how shared directly with Thai personnel, ranging from maintenance of automatic fare collection systems to information security standards and product development for mothers and children.

Foreign-owned businesses approved in October 2025 included:

• Design, procurement, installation, upgrading and development services for automatic fare collection systems
• Advertising services
• Consultancy, advisory and training services in business operations and information technology
• Software design and development services for organisational business processes
• Contract manufacturing, including PCBA, recycled paper products, industrial plastic components and machinery parts