Thai industrial sector faces mounting pressure as factory closures match new openings in June

Thailand’s industrial sector is grappling with intensifying challenges, with official data showing that in June 2025, the number of factory closures equalled the number of newly opened factories — a rare and concerning signal for the economy.

Figures from the Department of Industrial Works (DIW) covering January to July 2025 reveal that while factories continue to open, closures remain persistently high, underscoring the sector’s fragility. The downturn is compounded by looming threats from new US import tariffs, which are expected to directly impact Thai exports in the near future, forcing businesses to adapt swiftly to mounting uncertainty.

Factory operations, expansions, and closures (January–July 2025):

• January: 147 new, 14 expansions, 42 closures
• February: 144 new, 22 expansions, 47 closures
• March: 94 new, 22 expansions, 51 closures
• April: 117 new, 12 expansions, 82 closures
• May: 99 new, 14 expansions, 63 closures
• June: 73 new, 20 expansions, 73 closures
• July: 95 new, 25 expansions, 67 closures

Employment impact:

Job creation from new factories fell sharply mid-year, with June seeing just 1,413 new jobs compared with 2,307 lost from closures. Over the seven-month period, fluctuations in labour demand mirrored the volatility in factory operations.

Investment trends:

Capital investment also weakened, with June recording just 2.6 billion baht in new factory investments — one of the lowest figures of the year — against 3.1 billion baht lost from closures. While July saw a rebound in expansion investment (11.79 billion baht), new factory investment remained subdued at 9.38 billion baht.

Top five industrial sectors with the highest investment in new operations (January–July 2025):

1. Electrical appliances, printed circuit board equipment, and electronic component manufacturing – 16.72 billion baht
2. Machinery and mechanical equipment manufacturing, and mould and machinery repair – 8.08 billion baht
3. Food industry – 7.77 billion baht
4. Metal products, including construction metal products and steel pipes – 6.01 billion baht
5. Plastic products, including PVC plastic flooring manufacturing and sales – 4.40 billion baht

Top five industrial sectors with the highest investment in expansion (January–July 2025):

1. Vehicle and automotive parts manufacturing – passenger cars, trucks, and automotive components – 9.38 billion baht
2. Food industry – processed seafood, vegetable- and fruit-based beverages, and canned products – 7.57 billion baht
3. Metal products – containers, interior fittings, furniture manufacturing, modification, or repair – 5.22 billion baht
4. Beverage industry – beverage manufacturing – 708.12 million baht
5. Printing industry – printing, binding, cover-making, and print finishing – 562.37 million baht

Top five industrial sectors with the highest investment in closures (January–July 2025):

1. Machinery and mechanical equipment – refrigerator and accessory manufacturing – 1.73 billion baht
2. Chemicals and chemical products – synthetic cleaning materials (soap, shampoo), pesticide production, chemical fertilisers, organic fertilisers, and bio-fertilisers – 1.37 billion baht
3. Metal products – construction metal products, steel sheet cutting or rolling – 1.37 billion baht
4. Vehicles and automotive equipment – automotive and motorcycle parts manufacturing, vehicle repair – 1.27 billion baht
5. Wood processing and wood products – particle board manufacturing, rubberwood processing – 922.33 million baht