The Industry Ministry has tightened collaboration with another local government in Japan to attract small and medium-sized enterprise (SME) investors to Thailand.
The ministry yesterday signed a memorandum of understanding (MoU) with Aichi prefecture in the Chubu region of the main island of Honshu.
Permanent secretary Witoon Simachokedee said the ministry hoped to see 10 prefectures enter into an MoU this year.
Mr Witoon said the new wave of Japanese investors are interested in investing in Thailand as part of the Japanese government's policy to help its SMEs expand abroad.
Aichi provides the third-largest number of Japanese investors in Thailand, mostly in the automotive supply chain, electronics and high-technology sectors.
Mr Witoon said Japanese investors were more confident about investing in Thailand after being reluctant to make decisions during the political turmoil.
The country's fundamentals remain strong and infrastructure is ready to support their businesses.
Mr Witoon said the ministry expected to ink deals soon with four other prefectures including Fukuoka and Kawasaki.
Aichi governor Hideaki Ohmura said investors from his prefecture were involved mostly in the automotive, electronics, machinery and medical device sectors.
Japanese investors from Aichi prefecture investing in Thailand have reached 284.
They are involved in 416 factories including one belonging to Toyota, the world's largest car maker, and its supply chain and SMEs.
"We plan to share information for investors between Thailand and Japan and matching industries in the same clusters in order to support SMEs," said Mr Ohmura.
He said Japanese investors were still focusing on Asean members such as Thailand, Malaysia and Indonesia as major investment destinations.
This is because Asean is Japan's most important production base.
"There were a lot of Japanese business that relocated production from China to Asean to avoid the impact of political issues with China," said Mr Ohmura.
He said Thailand was the most popular country for Japanese firms compared with peers in Asean such as Indonesia.
"We've invested far more capital in businesses in Thailand," said Mr Ohmura.
Late this month, newly elected Indonesian President Joko Widodo is scheduled to visit Japan officially.
Mr Ohmura said Thailand's new government might consider visiting Japan soon as well.