Thailand inks deal with Japan to promote investment, trade
The Department of Industrial Promotion has signed a memorandum of understanding with the Japanese government and private sector to promote joint investment and trade between Thai and Japanese companies in Shimane and Osaka, deputy director-general Phassakorn Chairat said.
“Shimane is the location of Japan’s leading agricultural industries, while Osaka is among Japan’s top three cities in electronics and electrical industries,” he said. “This cooperation will boost Thailand’s capacity in agriculture and electronics, especially among small and medium enterprises that will benefit from technology transfer with Japan.”
Phassakorn said the department’s Japan division has been working closely with the Japanese government for more than a decade and has signed MoUs with 21 of 47 prefectures in Japan.
“We have also facilitated the establishment of trade offices in three Japanese prefectures – Tokyo, Aichi and Fukuoka – under cooperation with the SMRJ [Organisation for Small & Medium Enterprises and Regional Innovation, Japan] to promote investment and trade between the two countries,” he said.
“Due to the Covid-19 situation, the department has organised a business tie-up event between Thai and Japanese entrepreneurs online, in which we will provide an interpretation service,” Phassakorn said.
“This year we set a target to match at least 200 Thai entrepreneurs with 200 Japanese counterparts, with focus on automotive parts, food, medical equipment and cosmetics. The department will hold online trade negotiations once a week between five pairs of entrepreneurs until the year-end.”
In 2019, the department matched 43 Thai entrepreneurs with 40 Japanese businesses, with an estimated trade value of Bt370 million.
SMRJ representative in Thailand Makoto Ihara said that in the past few years several Japanese SMEs have been interested in investing in Thailand, Vietnam and Indonesia, with Thailand being considered a suitable location to establish manufacturing factories and a base to export to foreign markets.
“They view Thai entrepreneurs as being loyal and fair, and not just entering into cooperation with them to steal their technology,” Ihara said.
“The industries that the SMRJ have helped to promote bilateral cooperation include electronics, machinery and automotive components,” he said.
“Due to the trade war between the US and China, more Japanese companies are moving out of China and heading to Thailand and Vietnam as two equally best choices in the Asean region. Indonesia, which used to be a viable option, is now proving to have obstacles due to strict regulations,” he added.