Thailand exports jump 17.8% in Q1 as tech demand lifts factories

Manufacturing output growth improved to 0.9% from 0.4%.

Thailand’s manufacturing sector showed signs of recovery in the first quarter (Q1) of 2026, supported by technology exports, private investment, and stronger production activity.

According to Knight Frank Thailand’s Thailand Industrial Market Overview H1 2026 report, exports rose 17.8% year-on-year (YoY) to $95.1b in Q1, the strongest growth in 17 quarters.

Computer parts and accessories exports also increased 45.4%, telecommunications equipment rose 140.1%, and electrical appliances grew 19.6%.

The export growth coincided with stronger manufacturing activity, with the Manufacturing Production Index averaging 97.4 in Q1, up from 95.7 a year earlier.

Manufacturing output growth increased to 0.9% from 0.4% in the previous quarter.

Production of electronic components and boards rose 12.1%, whilst computers and peripheral equipment increased 27.8%.

Capacity utilisation rose to 61.3% from 57.5% in the previous quarter as manufacturers increased production to meet overseas demand.

“Thailand's manufacturing recovery in early 2026 has been supported by strong global demand for technology products, particularly electronics, computer components, and telecommunications equipment,” said Marcus Burtenshaw, Partner and Head of Industry Strategy & Solutions at Knight Frank Thailand.

Private investment increased 10.1%, its strongest growth in 14 quarters, driven by machinery and equipment investment.

Electronics remained the largest recipient of approved investment, attracting about $2.56b (THB84.6b) in Q1, or about 40% of total approved investment.

Investment included flexible printed circuit boards, printed circuit boards (PCB), and related electronic components.

Thailand approved 435 foreign investment projects during the quarter, down from 511 a year earlier. Total approved investment fell to around $4.77b (THB157.9b) from about $4.91b (THB162.5b).

Singapore accounted for 57% of approved investment value, up from 42% a year earlier. Three data centre projects accounted for around $1.37b (THB45.3b), alongside investment in advanced electronics, PCB manufacturing, and GPU-related production.

China accounted for 12% of investment value, or about $737.5m (THB24.4b), with investment focused on high-density interconnect PCBs and related electronic components.

Japan accounted for 10%, or around $622.2m (THB20.6b), with investment in copper clad laminate, flexible copper clad laminate, prepreg, and passive electronic components.

Thailand’s exports to the US increased 41.8% YoY after the effective US import tariff rate fell to 5.3%, following the implementation of Section 122.

Products exempted under Section 122 accounted for 61.2% of Thailand’s exports to the US.

In March, exports of digital processing units in exempt categories increased 247%, telecommunications equipment rose 87.3%, and PCBs increased 297.8%.

The Eastern Economic Corridor remained Thailand’s main industrial base, accounting for 123,478 rai, or 64.6% of the country’s serviced industrial land supply. Rayong accounted for 38.8%, Chonburi 20%, and Chachoengsao 5.7%.

New industrial land supply in the first half of 2026 was concentrated in Rayong and Chonburi.

Burtenshaw said countries would increasingly be judged by their ability to support the growth of entire industrial supply chains, including manufacturers across multiple tiers and reliable infrastructure and utilities.

“Electronics, digital infrastructure, and advanced manufacturing will continue to be key sectors supporting Thailand’s industrial activity and investment,” he said.

(US$1 = THB33.11)