Thailand witnessed a slowdown in new business registrations in the first half of 2025, as economic headwinds prompted cautious sentiment among entrepreneurs. According to the Department of Business Development (DBD), a total of 6,244 businesses shut down during the six-month period.
DBD Director-General Auramon Supthaweethum reported that 7,023 new businesses were registered in June 2025, a decline of 328 or 4.46% compared to the same month in 2024. Cumulatively, from January to June, new business registrations reached 43,838, down 2,545 or 5.49% year-on-year.
Despite the drop in volume, the overall registered capital of these businesses rose by 4.06 billion baht, or 2.8%, reaching 149.14 billion baht, up from 145.07 billion baht recorded in the same period last year. This uptick suggests continued confidence in long-term investment, despite short-term challenges.
The three most active sectors for new business registrations were general construction (3,490 businesses), real estate (2,870), and restaurants and catering services (1,832), accounting for 7.96%, 6.55%, and 4.18% of the total registrations, respectively.
Conversely, business closures continued to edge higher. In June alone, 1,468 businesses ceased operations, a 3.67% increase from the 1,416 closures recorded in June 2024.
The registered capital from these closed businesses surged to 10.40 billion baht, marking a sharp 112.16% rise from the previous year.
Between January and June, total closures reached 6,244 businesses, up by 205 or 3.39% compared to the same period in 2024. However, the combined registered capital of shuttered businesses dropped significantly to 30.54 billion baht, down 60.20% from 76.74 billion baht in the first half of 2024.
The sectors hit hardest by closures mirrored those with the highest registrations, with 547 construction companies, 316 real estate firms, and 276 restaurants and catering businesses ceasing operations. These figures represented 8.76%, 5.06%, and 4.42% of all closures, respectively.
Auramon noted that while fewer new businesses were established, the rise in capital investment signals underlying optimism.
Meanwhile, the moderate increase in business closures alongside a sharp drop in closed capital reflects the cyclical nature of the market. The ratio of new businesses to closures stood at 7:1, consistent with the historical average between 2020 and 2024.
Sectors showing the strongest growth in new registrations included wholesale of other food products (+64.45%), hotels and resorts (+48.93%), legal services (+46.79%), wholesale of general goods (+46.40%), and transport and logistics (+21.05%).
However, retail and real estate sectors saw notable declines. General retail stores fell by 31.50%, real estate agents and brokers by 29.11%, online retail by 26.05%, real estate firms by 21.50%, and restaurants and catering businesses by 12%.
In terms of foreign direct investment (FDI), Thailand recorded 111.50 billion baht in inflows during the first half of 2025, an increase of 30% from the same period last year.
Japan led foreign investment with 99 businesses, representing 20% of foreign enterprises and contributing 43.02 billion baht, mostly in raw material and component sourcing.
The United States followed with 72 businesses (14%), investing 2.79 billion baht primarily in engineering and retail, including automotive parts, cosmetics, and supplements.
China ranked third with 65 businesses (13%) and 18.33 billion baht in investments. Singapore had 63 businesses (13%) and invested 17.38 billion baht, focusing on personal loan services and data centres.
Hong Kong rounded out the top five with 51 businesses (10%) and 8.30 billion baht, investing in distribution centres, data infrastructure, and solar energy.
The Eastern Economic Corridor (EEC) attracted 158 foreign businesses in the first half of 2025, 31% of the total, reflecting a 36% increase from the previous year.
Investments in the EEC reached 62.85 billion baht, representing 56% of Thailand’s total foreign investment during the period. Japan was once again the leading investor in the region.
