Pact with Japan to bolster trade and investment

The Japan Business Federation, also known as Keidanren, signed a memorandum of understanding yesterday with the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) to strengthen trade, investment and economic cooperation between the two nations' business sectors.

Japanese businesses also pledge to shift their production bases from China to Thailand and increase investments, particularly in businesses related to the bio-, circular and green (BCG) economy and low-carbon sectors.

According to Kriengkrai Thiennukul, chairman of the Federation of Thai Industries and JSCCIB, under the partnership the two parties vow to explore more opportunities for cooperation and collaboration, mainly through joint committee meetings.

The two groups also agreed to promote regular exchanges of economic, trade and business information and entrepreneurial expertise.

In 2022, Japan visited Thailand several times at the leadership level. In addition to visiting Thailand to attend an Asia-Pacific Economic Cooperation meeting in May last year, Prime Minister Fumio Kishida flew here as a guest of the Thai government, the first visit by a Japanese prime minister in nine years.

Discussions between the leaders of both countries strengthened the strategic partnership of Thailand and Japan. They agreed to elevate their relationship from a strategic partnership to a comprehensive one, resulting in increased cooperation in many areas, according to JSCCIB.

Saroj Chayavivatkul, vice-chairman of the Thai Chamber of Commerce, said the two sides discussed the business environment and investment opportunities in both Thailand and Japan, as well as important aspects of business cooperation between the two countries, with a focus on promoting bilateral trade and investment.

Kobsak Duangdee, secretary-general of the Thai Bankers' Association, said the talks covered economic developments, including BCG economies, clean energy management, electric vehicle investment, logistics management, and production expansion in Thailand.

The two sides also discussed how to improve efficiency in international trade between Japan and Thailand through digitalisation, noting the significant advancements in digital trading systems following the pandemic.

One point of emphasis was Thailand must develop its economic competitiveness through digital systems, which will be a crucial driver for future growth, said Mr Kobsak.