Japanese manufacturing bases in Thailand are entering a 59% upgrade phase, poised to replace machinery, paving the way for Thai businesses to enter high-value supply chains.

The government revealed that 59% of Japanese companies in Thailand plan to replace their machinery, accelerating efficiency improvements and the adoption of digital technology. This opens opportunities for Thai entrepreneurs to develop products, technologies, and services to enter higher value-added supply chains.

17 August 2569 – Ms. Lalida Periswiwatana, Deputy Government Spokesperson It was revealed that the government prioritizes maintaining existing investment bases while attracting new investments. The results of discussions between the Board of Investment (BOI), the Japan External Trade Organization (JETRO), and the Japanese Chamber of Commerce and Industry in Bangkok (JCC) on August 13, 2569, reflect this important direction. Japanese businesses in Thailand are entering a phase of upgrading their production, focusing on machinery replacement, increasing efficiency, utilizing digital technologies and automation, and reducing energy consumption.

Deputy Spokesperson for the Prime Minister's Office It was stated that between 2021 and the first half of 2026, Japanese companies submitted applications for investment promotion in Thailand for a total of 1,380 projects, worth more than 396 billion baht. This reflects Japan's role as one of Thailand's key investors. This figure represents the cumulative value of investment applications over approximately five and a half years, and does not reflect new investment amounts all at once.

Meanwhile, a survey of economic trends among Japanese companies in Thailand for the first half of 2569, with a total of 504 companies responding, found that regarding the details of investment plans for 2569, out of 432 respondents, 59% or 256 companies planned to replace old machinery with new ones, 31% or 132 companies planned to improve production efficiency, and 22% or 96 companies planned to invest in Digital Transformation.

"This figure doesn't mean Japanese companies have stopped creating or expanding new investments. What's clear is that the most chosen activity is replacing machinery and improving the efficiency of existing production facilities. This reflects a shift in the industrial sector's focus from simply increasing production capacity to producing more efficient products using more advanced technology, conserving energy, and maintaining long-term competitiveness." Ms. Lalida said

This trend aligns with the Board of Investment's (BOI) implementation of the Smart and Sustainable Industry upgrade measures. From 2566 to the first half of 2569, more than 400 projects with Japanese shareholders have applied for promotion under these measures, with an investment value exceeding 55,000 billion baht.

This encompasses machinery modernization, energy conservation, environmental impact reduction, and the application of digital technologies, automation, and robotics in production.

Deputy Spokesperson for the Prime Minister's Office It was stated that this change presents an opportunity for Thai entrepreneurs because upgrading existing factories creates a demand not only for new machinery but also for replacement parts, control systems, automation systems, industrial software, maintenance, as well as energy-saving technologies and services.

“As Japanese factories in Thailand are undergoing machinery upgrades and adopting more automation, digitalization, and energy-saving technologies, this presents an opportunity for Thai businesses to shift from producing general parts to supplying higher value-added goods, technologies, and services. This is possible if they can improve their quality, standards, timeliness, and ability to connect with their Japanese buyers' production systems.” Ms. Lalida said

This The Board of Investment (BOI) will work closely with JETRO, the Japanese Chamber of Commerce and Industry in Bangkok, and Japanese businesses. To support the upgrading of existing businesses to higher value-added activities, coupled with human resource development, access to clean energy, and the creation of a favorable investment environment, Japanese investment will not only generate capital but also enhance technology and open opportunities for Thai entrepreneurs to play a role in continuously higher value-added supply chains.

refer : www.thaigov.go.th

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