2025.09.15

Corporate Management

Investment in Thailand, First – Half of 2025 : Positive Signals for the Engineering Industry and Japanese Companies

Foreign Investment Report, First Half of 2025 (Jan – Jun)

According to the report from the Board of Investment (BOI), Thailand received 1,880 foreign investment promotion applications in the first half of 2025 (Jan–Jun), marking an increase of 38%. The total investment value amounted to 1.06 trillion baht, a surge of 138% compared to the previous year.

The Top 5 industries by investment value were

1.Digital: 522,577 million baht
2.Electronics & Smart Appliances: 125,786 million baht
3.Automotive & Parts: 45,195 million baht
4.Renewable Energy: 42,238 million baht
5.Agriculture & Food: 30,785 million baht

 

In addition, foreign investors continue to show confidence in Thailand, with 1,369 FDI projects totaling 737,572 million baht, up by 132%. The top five investing countries/economic zones were Singapore, Hong Kong, China, the United Kingdom, and Japan respectively, with Japan alone investing 49,819 million baht. The Eastern Economic Corridor (EEC) remained the top investment destination, attracting 660,631 million baht in projects. BOI estimates that these investments will generate over 110,000 new jobs for Thai workers.

 

Investment in Thailand, First – Half of 2025 : Positive Signals for the Engineering Industry and Japanese Companies

Foreign Direct Investment (FDI) in Thailand continues to expand despite global economic uncertainties. The BOI report confirms Thailand’s strong position as a prime investment hub in Southeast Asia, particularly in industries such as digital, electronics, smart appliances, and next-generation automotive.

Notably, many projects are directly linked to the production of electric vehicles (EVs), semiconductors, and data centers—all future-facing industries that require a high volume of engineering and technology professionals, including electrical, electronics, mechatronics, and computer engineers.

For Japanese companies in Thailand, despite facing competition and cost pressures, investment continues, particularly in automotive and auto parts, which remain Japan’s core production base in the region. The transition toward EVs and automation systems has further increased the demand for talent skilled in automation, digital engineering, and Japanese language proficiency, ensuring smooth collaboration with headquarters in Japan.

The 49,819 million baht investment from Japan in the first half of the year not only underscores Japanese investors’ confidence in Thailand but also highlights the urgent demand for highly skilled professionals in engineering fields. Currently, this demand outpaces the Thai labor market supply, especially in mechanical, electrical, and mechatronics engineering.

Opportunities for Thai Workforce

1.High Demand: BOI’s promoted industries heavily rely on engineering expertise.
2.Labor Shortage: The gap between industry needs and the number of engineering graduates remains a challenge.
3.Digital Skills are Key: Fresh graduates with capabilities in IoT, AI, and automation will be in strong demand.
4.Japanese Language Advantage: Proficiency in Japanese will provide a significant edge in entering this market.

The surge of investment in Thailand, particularly from Japanese companies, presents both challenges and opportunities for the Thai STEM workforce. While BOI projects that over 110,000 new jobs will be created this year, the key question remains: Is the Thai workforce ready to meet the shifting demands?

Accelerating the development of engineering skills, combined with digital capabilities and foreign language proficiency, will be the critical factors enabling Thai workers to secure a strong, sustainable position in the evolving labor market.

Source  :  BOI, Foreign Direct Investment Report 2025 , Mreport

 

 

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