Thailand’s factory closures are accelerating nationwide. For the past two years, an average of at least 100 businesses have shuttered their doors each month, according to data from the Kasikorn Research Center (KResearch).
The forecasts suggest closures will continue throughout 2025, impacting businesses of all sizes.
While overall factory openings in 2024 outnumbered closures, the persistent rate of closures – exceeding 100 per month – paints a concerning picture.
The net reduction in operational factories, calculated by subtracting closures from new openings, has plummeted. Over the past two years (2023-2024), this figure has averaged just 52 per month, a stark contrast to the 127 monthly average seen between 2021 and 2022.
Kiatipong Ariyapruchya, a senior economist at the World Bank in Thailand, says there are significant hurdles facing Thai businesses, particularly in accessing funding, developing essential infrastructure, and addressing skills shortages. There are also regulatory obstacles, particularly concerning fair competition, trade, and investment.
Source: The Nation
