Thailand’s exports jumped 17.8% in the first quarter of 2026, reaching $95.1 billion. This figure marks the strongest growth in 17 quarters. The surge was largely driven by technology exports and stronger manufacturing activity, supported by private investment and robust production activity across the sector.
According to the Thailand Industrial Market Overview H1 2026 report by Knight Frank Thailand, private investment also saw a notable increase. Private investment rose by 10.1%, its strongest growth in 14 quarters. This momentum was supported by spending on machinery and equipment.
The recovery in the manufacturing sector is reflected in several key indicators. The Manufacturing Production Index averaged 97.4 in Q1, up from 95.7 a year earlier. Manufacturing output growth accelerated to 0.9% from 0.4% in the prior quarter, signaling a return to stability for the sector.
Exports of computer parts and accessories led the way, increasing by 45.4%. Telecommunications equipment saw a massive surge of 140.1%. Electrical appliances also showed growth, contributing 19.6% to the total export value. These figures align with a broader trend of rising demand for electronics and digital components.
Production of electronic components and boards rose by 12.1%. Computers and peripheral equipment saw a 27.8% increase. As manufacturers ramped up to meet overseas demand, capacity utilization climbed to 61.3% from 57.5% in the previous quarter. This indicates that factories are operating closer to full speed to handle the increased workload.
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This growth coincides with the implementation of trade policies that benefited the sector. Thailand’s exports to the United States increased by 41.8% year-on-year following the effective import tariff rate falling to 5.3%. This adjustment came after the implementation of Section 122, which exempts certain products from higher tariffs.
Products exempt under Section 122 accounted for 61.2% of Thailand’s exports to the US. In March alone, exports of digital processing units in these categories jumped 247%. Telecommunications equipment rose 87.3% and printed circuit boards increased by 297.8%.
Investment and Foreign Partners
Electronics remained a primary recipient of investment, attracting about $2.56 billion in Q1. This represents approximately 40% of total approved investment. The focus was on flexible printed circuit boards, printed circuit boards, and related electronic components.
Overall, Thailand approved 435 foreign investment projects in the quarter. While this is down from 511 projects a year earlier, total approved investment reached around $4.77 billion. Singapore accounted for 57% of the investment value, up from 42% the previous year.
Three data center projects accounted for roughly $1.37 billion, alongside significant investment in advanced electronics and PCB manufacturing. China was the second-largest source of investment, accounting for 12% of the value ($737.5 million) and focusing on high-density interconnect PCBs. Japan contributed 10% ($622.2 million), investing in copper clad laminate and passive electronic components.
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The shift toward data centers and high-density components suggests that Thailand is transitioning from general manufacturing toward specialized production hubs. For local communities in these industrial zones, this trend likely means evolving job requirements and increased pressure on existing utility grids to handle the specific energy needs of modern data infrastructure.
Geographic Focus: The Eastern Economic Corridor
The Eastern Economic Corridor remains the main industrial base for the country. It accounts for 123,478 rai, or 64.6% of the nation’s serviced industrial land supply. Regions like Rayong and Chonburi see the highest concentration of this activity.
New industrial land supply in the first half of 2026 was primarily concentrated in Rayong and Chonburi. Marcus Burtenshaw, Partner and Head of Industry Strategy & Solutions at Knight Frank Thailand, noted that broader economic recovery is underway. He stated that countries are increasingly judged by their ability to support industrial supply chains.
Burtenshaw added that electronics, digital infrastructure, and advanced manufacturing will continue to be key sectors supporting Thailand’s industrial activity. The report suggests that the country’s focus on reliable infrastructure and utilities will remain critical for maintaining this growth trajectory.
