Nation Thailand
Toyota’s Vietnam expansion exposes Thailand’s EV-era investment challenge
Compiled by KHAO Editorial — aggregated from 1 outlet. See llms.txt for citation guidance.
◌ Single Source
Toyota’s planned investment expansion in Vietnam has reignited concerns over Thailand’s future as a regional automotive production hub, but industry sources say the move reflects a broader shift in ASEAN manufacturing strategy rather than a withdrawa
Key facts
- Toyota has announced additional investment of more than US$283 million (around 9.3 billion baht) in Vietnam, prompting renewed attention on whether Thailand risks losing its position as a key production base.
- Toyota also plans to invest more than US$360 million to upgrade its Vietnamese facilities and prepare for hybrid vehicle production.
- The sources said manufacturers may increasingly choose countries where factories can serve domestic demand directly, with around 30-50% of production potentially sold locally and the remainder exported to nearby markets.
- In 2025, Toyota produced 564,933 vehicles in Thailand and exported 358,135 vehicles, reinforcing the country’s role as a major regional manufacturing and export centre.
- Vietnam’s advantage comes partly from its domestic market of more than 100 million people, while Indonesia has a population of around 288 million in 2026, creating larger markets to support direct production.
Summary
Toyota has announced additional investment of more than US$283 million (around 9.3 billion baht) in Vietnam, prompting renewed attention on whether Thailand risks losing its position as a key production base.
However, private-sector industry sources said the investment should not be interpreted as Toyota moving production from Thailand to Vietnam. Instead, it reflects the company’s strategy of expanding its regional manufacturing network in response to market size, production costs and changing automotive trends.