Japan has pledged to help restructure Thailand's industries and upgrade both large and small-scale enterprises to meet the "Thailand 4.0" initiative, which focuses on innovation and technology to foster a more value-based economy.
Industry Minister Uttama Savanayana signed a memorandum of understanding with Japan's Ministry of Economy, Trade and Industry (Meti) yesterday on cooperation in restructuring Thai industry.
Under the MoU, Japan will focus on helping to upgrade 10 targeted industries the government is promoting as clusters in the Eastern Economic Corridor (EEC) outside Bangkok.
The EEC, spanning a combined 30,000 rai in the three eastern provinces of Chon Buri, Rayong and Chachoengsao, is intended as a special zone for investment in these industries.
They 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 services.
The two countries will also work together to promote "global sourcing" in a bid to ease production costs for both Thai and Japanese companies, Mr Uttama said.
As an initial step, both countries will develop manuals explaining their respective industries. Meti will do this in Japan, with the Industry Ministry and Commerce Ministry tasked with doing the same in Thailand.
Japan is chasing a new policy goal of "Connected Industries" based on the use of digital technology to create more added value in its industries and it is now seeking cooperation from Germany on this, Mr Uttama said.
This creates room for Thai industry to learn from both, he added.
In another move to upgrade Thai SMEs, the Industrial Promotion Department has signed a cooperation pact with Small and Medium Enterprises and Regional Innovation, Japan, a state agency under Meti responsible for the development of SMES in Japan.
Meanwhile, the Thai government is establishing a long-term revolving fund for SMEs, Mr Uttama said. The fund may be around 50 billion baht but its size has not been fixed, he said.