The Japan Business Federation, also known as Keidanren, remains confident about its investments in Thailand and is keen to continue here, particularly in businesses related to the bio-, circular and green (BCG) economy.
Speaking after meeting with a group of visiting Japanese business executives headed by Yoshihisa Suzuki, vice-chairman of the Board of Councillors of Keidanren and chairman of the Japan-Thailand Trade and Economic Committee, Commerce Minister Jurin Laksanawisit said most Japanese companies remain interested in continuing their investment and using Thailand as a key production base and raw material supply chain, especially for the food industry.
Mr Jurin said he also encouraged Japanese investors to ramp up their outlays in the government's flagship Eastern Economic Corridor and existing special economic zones.
"Thailand and Japan will seek more cooperation to boost trade and investment," he said. "Thailand is aiming for 2% growth in exports to Japan this year."
Japan was Thailand's third-largest trading partner (after China and the US) in 2022, with a bilateral trade value of US$59.3 billion, down 2.30% year-on-year.
Thai exports were valued at $24.7 billion, with imports worth $34.6 billion, resulting in a trade deficit for Thailand of $9.91 billion.
Key Thai exports to Japan include processed animal products (such as canned tuna and salmon that are cut or seasoned), auto parts and components, cars, printers and parts, telecom equipment, electronic circuits, wire and cable, refrigerated or frozen poultry, and natural rubber.
Key Thai imports from Japan include auto parts and components, electronic circuits, hot-rolled sheet steel, electrical equipment (electric circuits), pure copper, gold, air pumps or compressors, and iron products.
According to the Business Development Department, Japan has the highest cumulative investment in Thailand, with a value of $27.8 billion, accounting for 25% of all foreign investment in Thailand. There are more than 6,000 Japanese companies in Thailand, compared with a total of 14,846 Japanese firms in the Asean region.
The top five industries in which Japanese companies invest the most are: holding companies; commercial banks; steel production; automobiles and auto parts; and electronics and electrical appliances.