Japan calls for Thai investments

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Japan calls for Thai investments
PETCHANET PRATRUANGKRAI
THE NATION

BANGKOK: -- AFTER being a key foreign investor in the Kingdom for more than half a century, Japan now hopes to see more direct investment from Thailand and other countries to serve its new policy of earning more international income to ensure sustainable economic growth.

Thai and Japanese officials and enterprises believe that this is the perfect time for Thai companies to invest in Japan, given that country's open economic policy and the depreciation of the yen, a seminar heard yesterday.

At the "Invest Japan Symposium in Bangkok", co-hosted by the Japan External Trade Organisation (Jetro) and the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), panellists urged Thai companies to consider Japan as a high-potential investment destination for them to expand in the international arena.

Among the factors cited as favouring such a strategy were the weaker yen, which will lower the cost of investment, Japan's strong base for research and development (R&D) and innovation, and the attractiveness of the Japanese market with its strongly competitive environment.

The Japanese economy has shown clear signs of recovery, while people have more spending power, which is good for businesses operating in the country, said Jetro chairman and chief executive Hiroyuki Ishige.

"It is a good time for Thai investors to consider start doing business in Japan, as the government has launched many policies on the financial and monetary side, and relaxed many regulations to facilitate more investment.

"Thai companies are a high-potential source of foreign investment in Japan, after many Japanese firms have invested in Thailand for a long time," he said.

Ishige said Japan would now start to show stronger economic growth, and its people would have more spending power. Many Thai businesses could successfully invest in Japan, such as in power, alternative energy and businesses related to tourism, fashion and beauty, he suggested.

To facilitate more foreign investment, Prime Minister Shinzo Abe's government will continue to reduce corporate income tax to about 20-29 per cent for many sectors such as agriculture, medical care, energy and employment in the next few years.

The government has also introduced many privileges to attract foreign investors, such as an exemption on office rentals for two months, support for Thais working in Japan, and a Jetro one-stop-shop service to give advice to investors.

Moreover, to promote more inbound investment, Jetro has this year organised the "Invest Japan Symposium" series, with yesterday's seminar in Bangkok being the first such event in Asean.

Japan has previously held similar events in China and the United States.

The Jetro chief added that investment from Thailand could grow in Japan under closer cooperation between the two governments and their private sectors.

According to Japan's Finance Ministry and the Bank of Japan, Thailand is the country's 10th-largest foreign investor, with US$154 million (Bt5.2 billion) invested last year.

Kan Trakulhoon, president and CEO of Siam Cement Group (SCG), told the seminar that the Japanese market was more open now than at any time in its history.

"Many Thai firms should consider investing in Japan with the yen having depreciated by more than 10 per cent, while Japan has strong R&D and innovation development that Thai companies can learn from and share. It is also an attractive and competitive market. Japan will be the future for Thailand," he said.

Kan said SCG would make Japan one of its investment targets, alongside Asean. The company will focus on acquisitions or merging with Japanese concerns in high added-value industries and service businesses, he added.

Deputy Prime Minister MR Pridiyathorn Devakula said Thai companies had high equity and should consider investing overseas, with Japan one of the markets with the highest potential for many businesses - mainly hotels, hospitality, retail, and feed-meal manufacturing.

Supant Mongsuthree, JSCCIB chairman, said Japan now had cheaper wages and rental costs than Singapore and Hong Kong.

Source: http://www.nationmultimedia.com/business/Japan-calls-for-Thai-investments-30261092.html


-- The Nation 2015-05-28

[quandow]

Dear Japan:

Don't hold your breath.

[Anthony5]

Will there also be the requirement that 51% of the Thai investments is in Japanese hands?

[MockingJay]

Egocentric, self-indulged, greedy, nationalist pricks investing in another country??? Keep on dreaming, Japan! "Your money here, to pay a full 100% for 49% or 25% ownership was very welcome, but don't expect us to return the favor!", says the clever Thai...

Edited May 28, 2015 by MockingJay

[halloween]

Do they accept cash?

[bangon04]

Maybe the Japanese should take back their bridges railways and tunnels, car factories and other major investments ....