Economic downturn leads to 6,244 business closures in H1 2025, says DBD

Auramon Supthaweethum, the DBD’s director-general, revealed that in June 2025, 7,023 new businesses were registered, a decrease of 328 businesses (-4.46%) compared to June 2024. 

For the first half of 2025, new business registrations totalled 43,838, down by 2,545 businesses (-5.49%) from the same period in 2024 (46,383). However, the registered capital of these new businesses increased by 4.06 billion baht (2.80%) year-on-year, reaching a total of 149.14 billion baht, compared to 145.07 billion baht in 2024.

The top three business sectors with the highest new registrations in the first half of 2025 were:

• General construction businesses (3,490 businesses)
• Real estate businesses (2,870 businesses)
• Restaurants and catering businesses (1,832 businesses)

These sectors accounted for 7.96%, 6.55%, and 4.18% of the total business registrations, respectively.

In contrast, business closures have surged. In June 2025, 1,468 businesses ceased operations, an increase of 52 businesses (3.67%) compared to June 2024 (1,416 businesses). The registered capital of these closed businesses amounted to 10.40 billion baht, up by 5.49 billion baht (112.16%) compared to the previous year.

In the first half of 2025, 6,244 businesses closed, an increase of 205 businesses (3.39%) compared to the same period in 2024 (6,039 businesses). The accumulated registered capital of these businesses was 30.54 billion baht, a decrease of 46.20 billion baht (-60.20%) compared to the first half of 2024 (76.74 billion baht).

The sectors with the highest business closures in the first half of 2025 were:

• General construction businesses (547 businesses)
• Real estate businesses (316 businesses)
• Restaurants and catering businesses (276 businesses)

These sectors accounted for 8.76%, 5.06%, and 4.42% of the total business closures, respectively.

Auramon noted that although the new business registration figures in the first half of 2025 showed a slowdown, the increase in registered capital indicates continued confidence in business investment. 

Conversely, while the number of business closures rose slightly, the decline in capital illustrates the cyclical nature of the business registration process. The ratio of new businesses to closures stood at 7:1, which is consistent with the average ratio from 2020-2024.

Auramon also highlighted that the most significant contributors to new business registrations in the first half of 2025 were:

• Wholesale of other food products (up 64.45%)
• Hotels, resorts, and apartments (up 48.93%)
• Legal activities (up 46.79%)
• Wholesale of general goods (up 46.40%)
• Transport and logistics (up 21.05%)

Conversely, retail businesses and real estate saw declines. Retail of other goods in general stores decreased by 31.50%, real estate agents and brokers by 29.11%, online retail by 26.05%, real estate by 21.50%, and restaurants and catering by 12%.

Regarding foreign investment, the DBD reported that foreign direct investment (FDI) in Thailand during the first half of 2025 totalled 111.50 billion baht, an increase of 30% from the same period in 2024. 

The top five foreign investors in Thailand in the first half of 2025 were:

• Japan: 99 businesses, accounting for 20% of foreign businesses in Thailand, with investments totalling 43.02 billion baht. The majority of investments were in raw material and component sourcing businesses.
• United States: 72 businesses, representing 14% of foreign businesses in Thailand, with investments of 2.79 billion baht. Investments were primarily in engineering services and retail businesses, including vehicle parts, cosmetics, and dietary supplements.
• China: 65 businesses, making up 13% of foreign businesses in Thailand, with investments of 18.33 billion baht. The majority of investments were in sourcing raw materials and components.
• Singapore: 63 businesses, also 13% of foreign businesses in Thailand, with investments totalling 17.38 billion baht. Investments were primarily in personal loans (regulated by the Ministry of Finance) and data centres.
• Hong Kong: 51 businesses, accounting for 10% of foreign businesses in Thailand, with investments totalling 8.30 billion baht. Investments focused on modern distribution centres, data centres, and solar energy projects.

In the first half of 2025, foreign investment in Thailand’s Eastern Economic Corridor (EEC) amounted to 158 businesses, representing 31% of all foreign investors in Thailand. This was a 36% increase from the same period in 2024. 

Investments in the EEC totalled 62.85 billion baht, or 56% of the total foreign investment in the country. Japanese investors led this growth, accounting for the highest number of investments in the EEC.