Thailand should expect a new wave of investment from Japan's small and medium-sized enterprises (SMEs), as the investment climate here is very supportive, says Deputy Prime Minister Somkid Jatusripitak.
Mr Somkid said Japanese SMEs have been looking for a perfect location to invest and Thailand's current investment climate is encouraging as the government continues to promote business matching between Japanese SMEs and Thai counterparts.
More importantly, most large Japanese companies have been well-established for years in Thailand.
Japan is the top foreign investor in Thailand. In the first half of this year, Japan submitted the most applications to the Office of the Board of Investment (BoI). It accounted for 55% of the total foreign investment or 65 billion baht from a total of 120 billion baht.
"Japanese SMEs perfectly meet the needs of their Thai counterparts, who are desperate to upgrade their technology," he said. "Japanese SMEs, meanwhile, are now expanding abroad, and there are around 8,000 Japanese SMEs that are potentially capable of going abroad."
Mr Somkid said Japan's Minister of Economy Hiroshige Seko recently made a clear statement that Thailand will remain a key partner for Japanese investors.
Japan hopes Thailand will form a crucial link in the production chain, connecting the CLMV cluster of nations (Cambodia, Laos, Myanmar, Vietnam and Thailand) with the Greater Mekong Subregion, and Asean as a whole.
Mr Somkid said Industry Minister Uttama Savanayana has been tasked with working in detail on cooperation between Thai and Japanese SMEs and between Thailand's Eastern Economic Corridor (EEC) and Japanese prefectures, including Fukuoka, Kansai, Toyama and Ehime.
According to Mr Somkid, during Monday's meeting between Japan investors and Prime Minister Prayut Chan-o-cha, the premier pledged that the Thai government is willing to support Japanese SMEs who move to invest in Thailand.
Gen Prayut also urged Japan to ramp up investment in Thailand as ongoing national reforms underscore the importance of keeping government policy consistent and transparent in the for stability.
The government has devised plans to develop the EEC into a series of new economic zones featuring upgraded technology based on an estimated 600 billion baht infrastructure investment plan.
The government has promised to go ahead with the EEC, and it will continue even after an elected government comes to power because it has been stipulated in the law, Gen Prayut said. A general election is expected between September and December next year.
