Japanese keen to press on with EEC operations
Japanese investors are calling on the government to carry out the Eastern Economic Corridor (EEC) scheme as they plan to invest and expand their operations further, says the Japanese Chamber of Commerce (JCC).
Atsushi Taketani, chairman of the JCC’s economic research group, said the EEC is a strategic opportunity for Japanese investors to capture business in Southeast Asia.
The JCC conducted a survey of business sentiment among Japanese corporations in Thailand in the first half, collecting data from 560 respondents.
“17 companies have a specific plan to invest in the EEC within three years, and 64 companies are interested in investing in the EEC but without any specific investment plan,” Mr Taketani said. “But 411 companies responded that they have no intention to invest in the EEC.”
He said Japanese companies are worried that EEC policies will be changed in terms of investment incentives and privileges by the new government.
The EEC scheme is a good industrial policy for Thailand to advance investment in new targeted industries under the S-curve policy, Mr Taketani said.
“Companies expressed their investment intentions both inside and outside the EEC,” he said. “But most respondents of the latest report have plans not related to the targeted industries, including next-generation automotive and aviation and logistics.”
Mr Taketani, also president of the Japan External Trade Organization in Bangkok, said the latest report showed that the US-China trade war has already led many Japanese companies in China to move operations and manufacturing to Thailand.
“Some 16% said they received a positive effect from the trade war, but 46% expect a negative effect, while 15% are uncertain of the effect,” he said.
Mr Taketani said the baht’s volatility with its strong moves versus other currencies is pressuring Thailand’s export sector.
The JCC forecasts Japanese business sentiment in the second half to show improvement after a slowdown in the first half.