Somkid confident of Japanese support
TOKYO: Deputy Prime Minister Somkid Jatusripitak is hopeful government incentives will trigger off a new wave of Japanese investment in Thailand.
More investment from China, South Korea, Germany and other EU countries is also expected if the government can ensure long-term peace and political stability.
“I believe a third wave of Japanese investment in Thailand is imminent after the government has introduced a raft of incentives, particularly for high technology and industrial cluster development,” Mr Somkid said yesterday on the second day of his four-day visit to Japan.
Japanese investors entered Thailand 30 years ago, with a second wave after the JapanThailand Economic Partnership Agreement came into force in 2007.
Mr Somkid and 24 executives of Thai companies yesterday met representatives of 80 Japanese companies and encouraged them to invest in Thailand, especially in high technology, innovation and research and development, to take advantage of privileges from the Board of Investment (BoI) and Finance Ministry.
The government will also set up a fund of 10 billion baht to support investment in 10 targeted industries being promoted as clusters, Mr Somkid said.
Last week the cabinet endorsed a plan to lure investment in 10 targeted industries after the Finance Ministry’s latest study found private investment in Thailand had receded continuously over the past decade.
The industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical.
“During the meeting, no companies complained about the government’s policies or expressed concerns about the Thai political situation,” Mr Somkid said.
“Instead, Japanese investors asked the Thai government to join the Trans-Pacific Partnership (TPP) trade bloc, saying that membership will reinforce their investment in Thailand.”
Mr Somkid confirmed with Japanese investors that Thailand still has time to join the TPP.
He said Thailand and Japan would establish a joint venture in the first quarter of next year to implement a rail project linking Myanmar’s Dawei megaproject with Laem Chabang and the Cambodian border.
Mr Somkid is due to meet Japanese Prime Minister Shinzo Abe today.
Thailand’s four economic ministers will also meet Japanese counterparts to discuss ways to strengthen trade and investment.
Mr Somkid said Minebea, Nachi-Fujikoshi, Mazda and Bridgestone have committed to expanding their business in Thailand.
BoI secretary-general Hiranya Sujinai said Minebea would like to make aviation ball bearings in Thailand.