Survey results of Japanese business in Thailand presented to NESDC

The Japan External Trade Organisation (Jetro) Bangkok office chief Kuroda Jun and the Japanese Chamber of Commerce (JCCB) Bangkok office head Takeo Kato recently met with the secretary-general of the National Economic and Social Development Council (NESDC), Danucha Pichayanan, to present the results of a survey on the economic outlook of Japanese joint ventures and businesses in Thailand for the first half of this year.

The survey found that the business environment for Japanese joint ventures and businesses in Thailand in the past six months has fallen, reflecting a decrease in the Diffusion Index (DI) caused by inflation and the shrinkage of Thai exports. The DI for the first half of this year stood at 21, down from 24 at the end of 2022.

However, it is expected that the index will improve in the second half of the year, reaching a level of 26, supported by the recovery of tourism and exports in the remaining months.

In addition to presenting the survey results, they exchanged opinions on various issues to support an investment-friendly environment in Thailand. This includes utilising the Long-Term Resident Visa (LTR Visa) to attract foreign experts to work in Thailand, as well as enhancing workforce skills in the country to create a skilled labour force for targeted industries that can attract foreign investment, such as semiconductor manufacturing, electric vehicles (EV), and hybrid vehicles.

According to the Department of Business Development, between January and May this year, the Committee on Business Operations of Foreigners approved 274 foreign investors to conduct business in Thailand under the Foreign Business Act of 1999.

However, it was stressed that this effort must be accompanied by addressing the increasing household debt in the country and making Japanese investors confident about maintaining a stable economic environment for conducting business in Thailand.

Of these, 87 were approved for foreign business licenses, and 187 received certificates to conduct business. The total investment amounted to 45.39 billion baht, employing a total of 2,999 Thai staff.

The top five countries in terms of investment were Japan with 63 projects and an investment value of 15.87 billion baht (23%), followed by the United States with 48 projects and an investment value of 2.46 billion baht (18%), Singapore with 46 projects and an investment value of 6.36 billion baht (17%), China with 19 projects and an investment value of 11.49 billion baht (7%), and Hong Kong with 12 projects and an investment value of 2.99 billion baht (4%).

Regarding investments in the Eastern Economic Corridor (EEC) in the same period, there were 48 foreign investors interested in investing in the EEC, accounting for 18% of the total number of investors. The total investment value in the EEC amounted to 9.44 billion baht, making up 21% of the total investment.

Japanese investors accounted for 19 projects with an investment value of 3.26 billion baht, followed by China with 9 projects and an investment value of 752 million baht, Hong Kong with 3 projects and an investment value of 2.92 billion baht, and other countries with 17 projects and an investment value of 2.51 billion baht.

These investments primarily involved services such as consulting and management of production processes in various industries, engineering and technical services, machinery and equipment design, and manufacturing services for industrial machinery and plastic parts, as well as international trade involving the purchase of goods, raw materials, and components for various industries, including the automotive industry.