Japanese corporate activity expands in Thailand amid domestic economic shifts

Japanese companies have reached a cumulative investment application total of 396 billion baht in Thailand, according to the Thailand Board of Investment (BOI). Spanning from 2021 to early 2026, these 1,380 applications focus on automotive parts, precision machinery, electronics, and smart industries. Investments are increasingly targeting smart factory upgrades, decarbonization, and high-value R&D.

In Japan, economic and retail trends show significant shifts. Consumer price inflation rose 1.9% in July, driven by energy costs, though rice prices saw a decline. The department store sector is facing a crisis, with over 80% of 58 major companies reporting decreased revenue in fiscal 2025, leading to an increase in 'department store empty prefectures.'

Technological adoption is accelerating in the Japanese business sector. Tsuruha Holdings is implementing 'SalesSensor' AI to improve new store sales forecasting, while Michibiku Co., Ltd. has launched an AI-driven evidence check service for internal control DX. Additionally, businesses are adapting to extreme heat by shifting leisure activities to nighttime or indoor environments.