Japan's SMEs seek fortune in Thailand

Japan's SMEs seek fortune in Thailand

Japanese investors, particularly small and medium-sized enterprises (SMEs), are keen on Thailand as a production base to tap opportunities from the upcoming Asean Economic Community (AEC).

Shoji Nishio, executive director of the SME division of the Tokyo Chamber of Commerce and Industry (TCCI), said his group's 80,000 Japanese SME members are eager to expand in Asean, especially Thailand.

When the AEC arrives in 2016, Thailand is seen as having an edge in infrastructure and facilities.

The country's culture is also viewed as a strength that attracts Japanese SMEs here.

The TCCI yesterday signed a memorandum of understanding with Thailand's fourth-biggest lender by assets, Kasikornbank (KBank), marking the first time it has partnered with a non-Japanese financial institution.

Mr Nishio said the deal, offering financial and non-financial support, will let more Japanese SMEs enter Thailand.

Banthoon Lamsam, KBank's chairman and chief executive, said cooperation with the chamber is aimed at preparing the bank for the changing environment both globally and locally.

KBank foresees Japanese and Chinese investors playing a greater role in Asia amid the still-fragile state of the US and euro-zone economies.

"We will seek cooperation with other chambers of commerce in Japan, state and private groups, and the existing 24 Japanese partner banks to reaffirm KBank's strategy of being an Asian bank," said Mr Banthoon.

Chambers of commerce in Japan say more than 7,000 Japanese companies operate in Thailand, half of them SMEs.

From 2005-10, the Japanese were the biggest foreign direct investors in Thailand, with a combined 720 billion baht applying for tax incentives from the Board of Investment.

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