Japanese Investment in Thailand Remains Resilient Despite Labour and Cost Pressures

Japanese investment in Thailand is set to continue as companies plan to keep investing despite labour shortages and high costs, according to a survey cited by Thailand’s Board of Investment.

Of 520 firms surveyed, 23% said they aim to expand operations as they expect the economy to improve in the first half of 2026, while 35% expect exports to rise and 26% plan to establish regional offices.

BoI secretary-general Narit Therdsteerasukdi said Thailand remains Japan’s key long-term base in Southeast Asia.

Japanese investment applications more than doubled in 2025 to 311 projects worth over THB119bn, led by automotive, electronics and digital industries, including hybrid-vehicle capacity and data centres supporting AI and cloud systems.