Thailand’s manufacturing sector recorded 786 factory closures and 1,220 new openings in 2025, but momentum weakened sharply towards the end of the year, according to Kasikorn Research Centre. In December, factory closures exceeded openings for the first time in two years, signalling mounting pressure on industrial operators and raising concerns about the sector’s short-term stability.
The data, reported by PPTVHD36 on February 6, show that while the full-year balance remained positive, the gap between openings and closures narrowed significantly. Kasikorn Research Centre said this trend reflects ongoing structural problems and increasingly intense competition within the manufacturing sector, particularly as economic conditions remain fragile.
Throughout 2025, new factory openings still outnumbered closures, but the overall surplus declined by 42% compared with previous years. The proportion of factory openings to closures dropped to 434, representing a significant decrease and indicating that business confidence is weakening despite continued investment activity.
The research centre identified the mining industry, food and beverage production, and non-metallic materials as the three sectors experiencing the highest number of factory closures. These industries have faced sustained pressure from rising costs, fluctuating demand and heightened competition from imported goods.
Another notable shift highlighted in the report is the increasing size of factories that are shutting down. The average registered capital per closed factory is projected to reach 49 million baht in 2025, up from 39 million baht per factory in 2024, suggesting that larger operators are now being affected rather than only smaller firms.
Kasikorn Research Centre warned that several structural challenges continue to weigh on manufacturing performance. Weak economic conditions and reduced purchasing power, driven by high living costs and elevated household debt, are limiting domestic demand and slowing output growth.
External pressures are also playing a significant role. Trade wars and a strengthening baht have increased production costs and reduced the international competitiveness of Thai manufacturers, particularly exporters operating on thin margins.
At the same time, intense competition from imported goods is squeezing capacity utilisation and sales across multiple sectors. This has made it harder for factories to maintain profitability, contributing to the rising number of closures seen towards the end of the year.
Kasikorn Research Centre recommended close monitoring of three key issues that may influence factory openings and closures. These include domestic economic conditions, external trade developments, and the impact of imports on local manufacturers’ capacity utilisation and revenues.
The research centre noted that how these factors evolve will be critical in determining whether Thailand’s manufacturing sector can stabilise in 2026 or face further consolidation.
Key Takeaways
• Thailand recorded 786 factory closures and 1,220 new openings in 2025, but closures exceeded openings in December.
• The mining, food and beverage, and non-metallic materials sectors saw the most factory shutdowns.
• Larger factories are closing, with average registered capital rising to 49 million baht per factory in 2025.
Adapted by ASEAN Now from Thainewsroom 2026-02-08
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