Japanese firms very interested in doing business in Thailand

[webfact]

Japanese firms very interested in key sectors here
Petchanet Pratruangkrai
The Nation


Masayasu Hosumi: Thailand now ranks second for Japanese investment after China.

BANGKOK: -- Many Japanese small and medium-sized enterprises have shown a strong interest in doing business in Thailand, in particular in the service and industrial-support sector, according to the president of the Japan External Trade Organisation (Jetro) office in Bangkok.

In an exclusive interview with The Nation, Masayasu Hosumi said many SMEs had asked for advice about doing business in the Kingdom.

"Many SMEs from Japan would like to expand their business into Thailand because of its emerging growth economy, and Thailand, and especially Bangkok, can provide a very attractive market to serve Japanese SMEs' growth," he said.

Confidence in Thailand among Japanese investors should also increase in the next survey results, which are scheduled to be released next month, with positive sentiment expected to rise now that the country has a functioning government, and one which has already come out with economic-stimulus policies, he said.

Thailand's economy will be stepping beyond the middle-income level to an average of more than US$5,000 (Bt162,000) a year per person in the near future, and Thais will therefore have more purchasing power, which will in turn serve Japanese business expansion, Hosumi added.

The main types of business that Japanese SMEs will expand in Thailand are in industrial-support services such as logistics, consultancy and accounting, and other services.

Moreover, the Jetro Bangkok chief said Japanese investors were also eyeing wider expansion in Asean under upcoming regional economic integration.

According to data from Japan's Finance Ministry, Thailand, Indonesia and Vietnam rank second, third and fourth, respectively, as target countries for Japanese investment, after China.

Asean this year has become the major target for Japanese investment, replacing China.

Data shows the value of Japanese direct investment in Asean came in at Bt303.1 billion during the first seven months of the year, against a total of Bt690.44 billion for the whole of last year.

Direct investment in China was worth Bt103.86 billion from January to July, against Bt266.27 billion last year.

Despite their interest in Thailand, there are some problems Japanese investors have expressed concern about in the latest survey and want the Thai government to address, such as pressing ahead with infrastructure projects and solving traffic problems in Bangkok.

Asked if Japanese investors were interested in joining development of Dawei in Myanmar, he said his government was looking at that.

He could not predict if Thai shipments to Japan would be negatively affected by the Japanese government's policy to increase consumption tax next year, as a final decision on whether to raise the tariff to 10 per cent would not be made until December.

Source: http://www.nationmultimedia.com/business/Japanese-firms-very-interested-in-key-sectors-here-30246784.html


-- The Nation 2014-11-03

[BSJ]

If the Japanese stopped flip floping and made a firm decision maybe the project could move ahead....or not!

[ChrisY1]

If the Japanese stopped flip floping and made a firm decision maybe the project could move ahead....or not!

Nothing to do with the Japanese "flip-flopping"........there just happens to be a military junta managing the country.......there won't be major new cash inflows while this situation continues....

[klauskunkel]

Japanese firms very interested in doing business in Thailand

except for Toyota who threatened last week to leave...just saying...

[mike324]

Japanese firms very interested in doing business in Thailand

except for Toyota who threatened last week to leave...just saying...

toyota never threatened to leave, they were just moving some production to other countries because there is an increase in demand which makes sense for them to start production there.

[fab4]

If the Japanese stopped flip floping and made a firm decision maybe the project could move ahead....or not!

Nothing to do with the Japanese "flip-flopping"........there just happens to be a military junta managing the country.......there won't be major new cash inflows while this situation continues....

....................and if they get round to reading Sunday's front page exclusive by the "other paper" regarding proposed changes to the Foreign Business Act ( all in the good cause of Nationalism, of course) there won't be many more statements like this being made by Japan, or anybody else for that matter.............................

[Lupatria]

Obey propaganda! And tomorrow we read: The Vatican is very interested to build 500 churches in LOS.

[FireMedic]

How big does your "firm" have to be so that you don't have to give 51% of it to a Thai? I get why it's done, but at some point, Toyota or Honda isn't 51% Thai owned in Thailand.

[JOC]

How big does your "firm" have to be so that you don't have to give 51% of it to a Thai? I get why it's done, but at some point, Toyota or Honda isn't 51% Thai owned in Thailand.

Big enough to be called Toyota (Thailand) or Honda (Thailand)!!

[JOC]

<Especially Bangkok, can provide a very attractive market to serve Japanese growth," he said.>

Badly needed, considering 3-3-3

[klauskunkel]

Japanese firms very interested in doing business in Thailand

except for Toyota who threatened last week to leave...just saying...

toyota never threatened to leave, they were just moving some production to other countries because there is an increase in demand which makes sense for them to start production there.

granted, they did not threaten..., however I was referring to this post from memory:

Posted 2014-10-28 09:42:39

Toyota may shift manufacturing hub for Fortuner to PH

By Othel V. Campos

http://www.thaivisa.com/forum/topic/771941-toyota-may-shift-manufacturing-hub-for-fortuner-from-thailand-to-philippines/?hl= toyota

[rickirs]

"Asean this year has become the major target for Japanese investment, replacing China."

This is part of a bigger picture as the conflict between China and Japan, as well as with the other China Sea countries, continues to escalate. Japan will want to move its industries out of China so as not to be held hostage to Chinese political manuevers as soon as possible so Japan can continue with its own political agenda for China Sea resources.

Thailand, Malaysia, and Vietnam stand to benefit so long as they can provide the infrastructure and labor to support those industries. However, from a military strategic viewpoint, all those countries are land-accessible from China and lack American military presence which might them targets of Chinese political pressure and military posturing. The Philippines is less accessible to China and has significant American military forces based in the country; however, it needs better infrastrucure and is more susceptible to violent weather conditions. Thailand would best keep in mind it is not the only suitor for increased Japanese businesses and might well chill a little with its embracement of partnership with China.

[Christie Paul]

Japanese firms very interested in doing business in Thailand...

Really?

Perhaps a bit of vulture capitalism which can leverage itself in a shrinking economy with money velocity slowing down.

Areas of interest? Logistics, consultancy, accounting, and other services. Now there's some corporate ambiguity with a tendency towards a low investment foot print and focusing on the more parasitic of endeavours.

Because of their existing investments, the Japanese have to appear positive but if one reads in between the lines, it's clear there is not even the slightest hint of any serious Japanese investment.

[mango66]

Especial small companies,

as CEO likes to have his apartment close to Patpong or Nana;

[thailiketoo]

except for Toyota who threatened last week to leave...just saying...

toyota never threatened to leave, they were just moving some production to other countries because there is an increase in demand which makes sense for them to start production there.

granted, they did not threaten..., however I was referring to this post from memory:

Posted 2014-10-28 09:42:39

Toyota may shift manufacturing hub for Fortuner to PH

By Othel V. Campos

http://www.thaivisa.com/forum/topic/771941-toyota-may-shift-manufacturing-hub-for-fortuner-from-thailand-to-philippines/?hl= toyota

The devil is in the details. That was not a story by Toyota it was from the Philippine Chamber of Commerce with no confirmation from Toyota. As opposed to the above story by the President of the Japan External Trade Organisation .

[khunpa]

I know a lot of foreign companies who would also be interested in doing business and investing here. But with the current terms most run away.

Besides the women and warm weather, then what does Thailand really have to offer?

Educated people? English speakers? Low Salary Levels? Friendliness towards foreign investors or foreigners in general?

[thailiketoo]

I know a lot of foreign companies who would also be interested in doing business and investing here. But with the current terms most run away.

Besides the women and warm weather, then what does Thailand really have to offer?

Educated people? English speakers? Low Salary Levels? Friendliness towards foreign investors or foreigners in general?

1. Cheap skilled labor, 2. Electricity. 3. Deep water ports close to the industrial areas for ease of import and export shipping overseas. 4. The industrial infrastructure to provide the parts necessary for manufacturing. (Ford buys the parts to assemble the autos in Thailand) Thailand is worlds 10th leading manufacturer of automotive vehicles and makes half of the computer hard drives made in the world.

That's what it has among other things.