Posted on 16 Jan 2015
Industry Minister
Chakramon Phasukavanich said that under Japanese Prime Minister Shinzo Abe's
policy to help SMEs invest overseas, many companies wanted to expand into
Thailand because of the two countries' close relations and their view that
Thailand is a centre for
Asean linkage.
He spoke after a meeting with the head of
Japan's Ministry of Economy, Trade and Industry and the head of the
Organisation for Small and Medium Enterprises and Regional Innovation, Japan
(SMRJ) on late Wednesday.
"With the real intention of Japan
SMEs to expand their businesses into Thailand, the ministry is targeting 500
Japan SMEs investing in Thailand this year," Chakramon said.
To facilitate Japanese investment, the
ministry will launch a programme to match Thai and Japanese SMEs as partners
for starting businesses in Thailand.
Under Abe's policy, the Japanese
government wants at least 10,000 SMEs to begin operating abroad between 2014
and 2018 because of the country's economic-growth slowdown and its rising
number of elderly people.
By investing overseas, SMEs tap a bigger
market while Asean - especially Thailand - is a target destination for
new investment thanks to the region's rising economic growth, its support
infrastructure, and its supply chains and facilities to support business
expansion.
Chakramon said more Japanese SMEs
commencing operations in Thailand would help promote the growth of supply-chain
industries and increase the value add in many products and services.
Transfer technology
When asked if Thai businesses should be
worried about competition from Japanese SMEs, he said they should not worry too
much because Japanese companies wanted Thai partners. He said Japanese
investment should also help transfer technology, know-how, and wisdom to Thais.
According to the Industry Ministry, in
2014 more than 10 Japanese SMEs in sectors such as food, pharmaceuticals and
cosmetics opened in Thailand.
To help forge closer ties with Japan,
Chakramon said Prime Minister General Prayut Chan-o-cha would lead a team to
Japan early next month to discuss investment and trade cooperation as well as
the Kingdom's planned high-speed rail network.
He said the two countries would also
discuss the possibility of revising the Japan-Thailand Economic Partnership
Agreement. Japan wants Thailand to review tariffs on steel and luxury-car
imports under the agreement, and Thailand has studied the economic impact of
any tariff reductions.
Hiroshi Takada, chairman and chief
executive officer of SMRJ, said hundreds of Japan SMEs viewed Thailand as a
potential market and a springboard to serve business growth in other
Asean countries under the upcoming full implementation of the
Asean Economic Community this year.
He said the most popular segment was
supply-chain manufacturing - from farming to services such as medical supplies
and electronics.
Takada added that Japanese SMEs had a lot
of confidence about investing in Thailand since many large Japanese enterprises
are already in the country and can support supply-chain industries, while the
Kingdom also has good basic infrastructure.
Japanese investors prompted the transfer
of know-how and technology to Thais to form good partnerships, he said.
His only concern for Japanese SMEs centred
on Thailand's laws and regulations not being in English.
