Market Update: Economic downturn leads to 6,244 business closures in H1 2025, says DBD – Full Analysis

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.