The ASEAN Institute for Health Development, formerly known as the Training Center for Primary Health Development (ATC/PHC), was established in October 1982 as part of the ASEAN Human Resource Development Project supported by the government of Japan under the leading initiative of H.E. Zenko Suzuki, then Prime Minister of Japan. The ATC/PHC project was jointly proposed by Mahidol University and the Ministry of Public Health. The Japanese government approved a technical grant in the amount of US$20 million for the project. The agreement-signing ceremony for the technical cooperation between Mahidol University and the Ministry of Public Health, as representative of the Thai government, was held on 29 September 1982, while the signing of the technical cooperation with the Japanese government was organized one month later. From these agreements, the ATC/PHC, under the care of the Ministry of Public Health, was set up at the Salaya Campus of Mahidol University in Nakhon Pathom province, along with four regional centers, located in the provinces of Khon Kaen, Chon Buri, Nakhon Sawan, and Nakhon Sri Thammarat. Prior to the construction of the center at Salaya Campus, the ATC/PHC began its operation in a temporary office at the Faculty of Public Health, Mahidol University on Rajvithi Road, Bangkok, and later moved to the Administrative Center of the Salaya Campus. The construction of the center finally commenced in 1983.

The Japanese based Ishimoto Co. was contracted for the construction of the center. HRH Princess Maha Chakri Sirindhorn came to preside over the ceremony for the laying of the foundation stone for the AIHD building on 23 July 1983. The AIHD people took this auspicious day as the birthday of the institute. The construction was completed in February 1984, lasting a total of one year and 20 days. Prof. Dr. Natth Bhamarapravati, then President of Mahidol University, signed the transfer agreement of the ATC/PHC building in May 1984 with Mr. Isuzu Hayashi, President of the construction company. The ATC/PHC staff then moved to the new premises.The inauguration ceremony of the ATC/PHC took place on 20 February 1985. HM King Bhumibol Adulyadej designated H R H Crown Prince Maha Vajiralongkorn to preside over the ceremony, on his behalf.

The ATC/PHC compound consisted of five buildings; namely, administrative building, training center and museum, an auditorium with 360 seats, dormitory housing 51 double rooms, and cafeteria. Apart from the grant for the construction, the Japanese government also granted a budget for research and training which immediately set the center on its course. The financial support was allocated for five years and later extended for two more years until 1989.According to the meeting no. 531 on 18 April 2018, the ASEAN Institute for Health Development was approved by the Mahidol University Council to modify the organizational structure based on the new mission in accordance with the resolution of experts’ meeting held on 5 April 2018.