Two Japanese firms are planning to spend a total of 10 billion baht expanding their investment into Thailand in S-curve industries, says the Industry Ministry.
The Thai government is promoting 12 targeted S-curve industries, including smart electronics.
The two companies are interested in investing in air and compressor manufacturing, said officials.
"Both companies are supporting the Thai economy by increasing employment and exports," said Industry Minister Pimphattra Wichaikul.
The new investment projects follow a recent roadshow, jointly organised by the Industrial Estate Authority of Thailand (IEAT) and the Board of Investment (BoI), in Japan to invite investment in the promoted industries.
Compressors, electrical appliances and solar panels are among the industries expected to grow in Thailand, according to the ministry.
Officials said other Japanese investors are considering outlays in Thailand, which is a key production base for Japanese firms.
The government's investment incentive packages and the Eastern Economic Corridor (EEC) play an important role in drawing foreign investment, said the BoI.
The EEC, which covers parts of Chon Buri, Rayong and Chachoengsao, is expected to become the country's high-tech industrial hub hosting the 12 S-curve industries.
Japan is ranked first in terms of investment value in Thailand. Investment from its 1,973 companies comprises 29% of total foreign investment worth 2.85 trillion baht, said Veeris Ammarapala, governor of the IEAT.
Most of the Japanese firms, amounting to 1,451 companies, base their production facilities in the EEC area, with 522 operating their businesses elsewhere.
Japanese executives have invested in a wide range of industries, including cars, steel, machinery, electronics, plastics, chemicals, rubber and food.
The IEAT announced last year it was in talks with the Trade Policy Bureau of Japan's Ministry of Economy, Trade and Industry regarding clean energy investment in its industrial estates.
The authority plans to invest in hydrogen energy projects, which would include the use of hydrogen-powered vehicles to transport workers on its industrial estates, as part of efforts to shift towards clean energy.