Thailand is actively courting Japanese investment, highlighting its positive economic outlook and positioning itself as a regional hub for future industries.
Commerce Minister Pichai Naripthaphan recently met with representatives of Japan External Trade Organisation and Japan Chamber of Commerce Bangkok to strengthen economic ties.
Pichai emphasised Thailand's commitment to supporting Japanese businesses, citing robust export growth (5.4%) in 2024 and record investment promotion figures (1.13 trillion baht). He stressed the importance of Japan as Thailand's top foreign investor and highlighted the prime minister's push for further investment.
Key initiatives include securing new free trade agreements (FTAs) with the EU and other nations to enhance trade opportunities. Thailand is particularly keen to attract Japanese investment in future-oriented sectors like semiconductors, data centres, and AI, offering potential participation in Japan's multi-billion-yen supply chain initiatives.
Pichai also discussed addressing investor concerns, including tariff issues with the US, and outlined efforts to protect intellectual property and ensure fair trade. JETRO and JCCB offered recommendations for improving Thailand's business environment, focusing on streamlining regulations and bolstering cybersecurity.
JETRO Bangkok chairman Kuroda Jun presented findings from a recent survey regarding the economic outlook for Japanese joint ventures in Thailand.
While the survey indicated some concerns about durable goods consumption (with a Diffusion Index of -11), it also showed optimism for export growth in 2025, particularly to India, Vietnam, Indonesia, and the US.
Japanese businesses acknowledged Thailand's progress in infrastructure, digital government initiatives, and visa facilitation. Kuroda highlighted these improvements as positive signs for continued Japanese investment.
Bilateral trade between Thailand and Japan reached $52.02 billion in 2024, with Japan remaining a crucial investment partner.