The Nation newspaper says on its website the boats were ferrying tourists to Pha-Ngan island for a "full moon" party – a monthly event that attracts mostly young Western tourists.
It says the boats collided and overturned just before midnight, throwing passengers into the sea.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Two are reported missing and two of the 39 injured suffered serious head injuries.
Australian authorities have confirmed at least seven Australians are among the injured and they're still trying to find out if any are missing.
