The Board of Investment (BOI), in collaboration with the Thai trade delegation, the Prime Minister’s Office, the Thai ambassador and consul general in Japan, organized an investment roadshow to Japan from June 19th to 21st, 2024. The delegation, led by M.L. Chayotid Kridakon, Chairman of the Thai Trade Representative, and Mr. Narit Therdsteerasukdi,Secretary-General of the BOI, hosted the “Thailand – Japan Investment Forum 2024” in Tokyo and Osaka, in partnership with MUFG, Japan’s largest bank.
The event attracted over 400 Japanese investors from various industries, including automotive, electronics and semiconductors, digital, bio-industry, and finance and banking. In addition to industry-specific meetings and BOI Clinic consultations, the delegation also met with leading Japanese companies in high-tech automotive and electronics components, bio-industry, and creative industries.
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M.L. Chayotid emphasized the Thai government’s commitment to Japanese investors, who have been the first and largest foreign investors in Thailand for over 50 years, playing a crucial role in establishing Thailand’s industrial base,particularly in automotive and electronics.
“Geopolitical issues, which tend to escalate, have created risks for the business sector, making it necessary for global investors, including Japanese investors, to diversify or relocate their production bases to stable and neutral countries,” said M.L. Chayotid. “The Thai government recognizes the challenges that come with this opportunity and has focused on improving regulations and the business ecosystem to create an investment environment that is not only free from conflict but also enhances investors’ competitiveness in various aspects.”
The Thai government is accelerating policies crucial to trade and investment, such as negotiating free trade agreements (FTAs). Thailand currently has 15 FTAs covering 19 economic zones and is negotiating five more with the EU, EFTA,South Korea, the UAE, and Bhutan. The government is also focused on providing clean energy sources to investors to support their carbon reduction goals and developing a skilled workforce for new industries through programs like the Thai-Kosen Institute and the Ministry of Higher Education, Science, Research and Innovation’s (MHESI) Sandbox program.
Mr. Narit highlighted Japan’s position as Thailand’s top investor for decades, with over 6,000 Japanese companies operating in Thailand, the most in ASEAN. He emphasized Thailand’s advantages for Japanese investors, including quality infrastructure, digital infrastructure, a complete supply chain, market access through FTAs, a skilled workforce,openness to foreign talent, clean energy sources, neutrality, reasonable business costs, and quality of life.
“The BOI is committed to supporting Japanese investors to grow and expand their investments in Thailand, particularly in advanced technologies or new target industries such as electric vehicles, semiconductors and advanced electronics, digital,and bio-industry,” said Mr. Narit. “We also encourage Japan to use Thailand as a base for research and development centers and regional offices.”
The BOI presented new measures beneficial to Japanese investors, including incentives for upgrading the automotive and parts industry, relocating businesses, stimulating investment for economic recovery, promoting smart and sustainable industries, and investing in target areas like the EEC and special economic zones. The BOI also introduced a Startup Matching Fund to support collaboration between Thai and Japanese startups.
The Investment Forum included industry-specific roundtable meetings for the automotive and electronics industries, with over 80 and 30 participants, respectively. Additionally, over 20 companies with plans to invest in Thailand participated in the BOI Clinic for in-depth consultations, demonstrating strong interest in investing in Thailand.
The Thai trade delegation and BOI also met with four leading Japanese companies to discuss investment plans in Thailand and government support. These companies included MinebeaMitsumi, Toray Industries, Mitsui, and TeamLab.
Over the past 10 years, Japanese investment projects have applied for promotional privileges worth over 870 billion baht.In 2023, Japanese investors submitted 264 projects worth 79.151 billion baht. In the first quarter of this year, 74 projects from Japan applied for promotional privileges, with investments totaling 14.981 billion baht, mainly in the automotive and parts, electronics, food, and biotechnology industries.
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