Bangkok: The government has announced that 59% of Japanese manufacturing facilities in Thailand are entering an upgrade phase, with plans to replace machinery and enhance technology, thereby opening opportunities for Thai businesses to enter high-value supply chains. According to Thai News Agency, this development was highlighted by Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, who emphasized the government's priority to maintain existing investment bases while attracting new investments.
The discussions held on August 13, 2026, between the Board of Investment (BOI), the Japan External Trade Organization (JETRO), and the Japanese Chamber of Commerce and Industry in Bangkok (JCC) revealed that Japanese businesses are focusing on machinery replacement, increasing efficiency, utilizing digital technology and automation, and reducing energy consumption. Between 2021 and the first half of 2026, Japanese companies submitted applications for investment promotion in Thailand for 1,380 projects, valued at over 396 billion baht, further solidifying Japan's role as a key investor in Thailand.
A survey conducted among 504 Japanese companies in Thailand for the first half of 2026 showed that 59% of respondents planned to replace old machinery, 31% aimed to improve production efficiency, and 22% intended to invest in digital transformation. This reflects a shift from merely increasing production capacity to enhancing product efficiency using advanced technology, conserving energy, and maintaining competitiveness in the long term.
This trend aligns with the BOI's Smart and Sustainable Industry upgrade program, which attracted over 400 projects with Japanese shareholders from 2023 to the first half of 2026, totaling an investment value exceeding 55 billion baht. These projects focus on upgrading machinery, saving energy, reducing environmental impact, and adopting digital technologies, automation, and robotics in production.
Ms. Lalida also mentioned that the machinery upgrades and adoption of automation present opportunities for Thai entrepreneurs to supply high-value-added goods, technologies, and services. This transition will require improvements in quality, standards, timeliness, and connectivity with Japanese buyers' production systems.
The BOI, along with JETRO and the Japanese Chamber of Commerce and Industry in Bangkok, will support the upgrading of existing businesses to higher value-added activities. This initiative will be accompanied by efforts in human resource development, access to clean energy, and creating a favorable investment environment, ensuring that Japanese investment not only brings capital but also enhances technology and expands opportunities for Thai entrepreneurs in the value-added supply chains.