Japanese businesses lead 79% surge in foreign investment in 2024

Investors from Japan accounted for THB121.19 billion of the total THB228.1

 

Thailand witnessed a 79 per cent year-on-year surge in foreign investment in 2024, attracting a substantial 228 billion baht, the Commerce Ministry said on Friday, underscoring the growing confidence of international businesses in the Thai economy.  

 

Japanese businesses were the biggest investors, accounting for more than half with over 121 billion baht.

 

Auramon Sapthaweethum, director-general of the Department of Business Development at the Ministry of Commerce, revealed that 954 foreign businesses had received authorisation to operate in Thailand in 2024 under the Foreign Business Act.  

 

This comprises 227 businesses granted standard operating licences and 727 receiving certificates through investment promotion schemes or international agreements, said Auramon, who is also secretary of the Foreign Business Operations Committee. 

 

Japanese investment, totalling 121.190 billion baht across 254 businesses, represented 27% of all foreign investment in Thailand in 2024.  Japanese companies are active in diverse sectors, including engineering and technical services (such as electric vehicle engine testing), international trade (sourcing materials for the automotive and electronics industries), food and beverage retail, digital content and software development, and contract manufacturing (producing items like moulds, metal and plastic parts, and vehicle components).
  

A total of 137 Singaporean businesses brought in 22.485 billion baht (14% of the total), with focus on areas such as engineering and technical services (including engineering design), international trade (particularly in medical devices), petroleum drilling, software development, and contract manufacturing (for solar energy components, vehicle parts, and metal products).

 

China’s 123 businesses, which are investing 19.547 billion baht (13% of the total), are involved in installing and maintaining conveyor belt systems for electric vehicle factories, international trade (especially in electronics components), software development, film visual effects, and contract manufacturing (producing moulds, high-capacity batteries, electrical appliances, and vehicle parts).

 

A total of 121 US businesses are investing 24.675 billion baht (13% of the total). They are active in sectors such as engineering and technical services (including website development), retail (covering food and beverages, industrial machinery and medical equipment), advertising, food and beverage services, and contract manufacturing (producing car parts, confectionery, ready meals and electronic products).

 

A total of 69 Hong Kong businesses invested 15.281 billion baht (7% of the total), focused on international trade (sourcing materials for various industries), engineering design and construction (including solar cell systems), distribution centres, software development, and contract manufacturing (for moulds, automotive parts, and electronic components).
 

  

This substantial foreign investment has facilitated valuable technology transfer to Thai workers, providing expertise in areas such as petroleum drilling, medical technology, automotive component quality testing, and electric vehicle electrical system design, Auramon said.

 

The 2024 figures represent a 43% increase in the number of foreign businesses operating in Thailand (up from 667 in 2023 to 954) and a 79% increase in investment value (from 127.532 billion baht in 2023 to 228.106 billion baht).  

 

However, the number of Thai employees hired by foreign investors decreased by 26% (from 6,845 in 2023 to 5,040 in 2024).

 



 

Japan remains the largest investor, with investment increasing more than three fold – from 32.148 billion baht in 2023 to 121.190 billion baht in 2024.

 

Investment in the Eastern Economic Corridor (EEC) has also seen substantial growth. The number of foreign investors in the EEC has increased by 124% (from 134 in 2023 to 301 in 2024), and investment value has risen by 46% (from 38.613 billion baht in 2023 to 56.490 billion baht in 2024).  

 

Key EEC investors include Japan, China and Hong Kong, focusing on sectors such as automotive engineering services, sourcing materials for various industries, software platforms, heat treatment and contract manufacturing.

 

In December 2024 alone, 70 foreign businesses were authorised to operate in Thailand, representing 14.142 billion baht of investment, primarily from Singapore, Japan and Hong Kong. These investments created 1,369 jobs for Thais and brought technology transfer in areas such as air cargo management, offshore cement injection, telematics, and digital advertising.  

 

Investments in December focused on sectors like petroleum drilling platform maintenance, international business centres, software development, air freight forwarding, and contract manufacturing.

(2025/02/08-00:00)