Thai exports to Japan soar with rising demand for Y Series and entertainment despite weak yen

Thailand is pushing forward with exports to Japan in the final stretch of 2024, particularly in the booming sectors of entertainment and Y Series, despite the yen’s weakness.

Japan is a key trading partner for Thailand and remains the largest investor in the country. In 2024, trade between Thailand and Japan was valued at US$52.01 billion, with Thai exports totalling US$23.29 billion and imports amounting to US$28.73 billion. However, Thailand continues to experience a trade deficit with Japan, which reached US$4.18 billion in the first eight months of 2024.

Chanthapat Panjamanond, Thailand’s Commercial Counsellor at the Trade Promotion Office in Tokyo, said that despite Japan’s economic slowdown and weaker yen reducing consumer purchasing power, Thai exports have remained positive.

For 2025, the goal is a 2% growth in exports to Japan, which would add over 10 billion baht to the value from the previous year. In the last quarter of this year, the focus will be on increasing exports of food and entertainment products, particularly games and Y Series, which have gained massive popularity in Japan. In the previous year, Thailand exported approximately 1.5 billion baht in games and 1 billion baht in Y Series.

Despite the challenges posed by Japan's economic conditions, such as higher costs of living and stagnant wages, Thai exports continue to thrive. The depreciation of the yen has made foreign goods cheaper for Japanese consumers, while increasing the cost of imported goods for domestic consumers, causing them to tighten their belts.

Chanthapat also explained that Thailand’s trade deficit with Japan is partly due to Japanese companies establishing production bases in Thailand. For example, Japanese car manufacturers import essential parts to produce vehicles for both the domestic market and exports. If Japan's car exports, particularly to the United States, continue to perform well, this could boost Thailand's automotive exports to Japan.

The recent US-Japan tax agreement, which reduces Japan’s tariff on US goods from 24% to 15%, could affect the Thai rice market in Japan. Japan has also agreed to import 770,000 tons of US rice annually under a World Trade Organization (WTO) quota, which might cause Thailand to lose some of its rice market share to the US. However, Japan still demands specific types of rice, such as jasmine rice, which Thailand can produce in abundance. The Thai Ministry of Commerce is closely monitoring the situation to ensure continued rice exports to Japan.