Thailand is committed to moving ahead with collaborative initiatives with Japan's Wakayama prefecture, focusing on the joint development of furniture and agricultural processing industries, enhancing joint product development and increasing export opportunities.
Speaking on Thursday after meeting with Kishimoto Shuhei, the governor of Wakayama, Commerce Minister Phumtham Wechayachai said he proposed the prefecture promote collaboration and start a matching scheme between Thai and Japanese entrepreneurs in the furniture and agricultural processing industries to develop joint products that leverage each country's strengths.
Mr Phumtham also requested Wakayama entrepreneurs in agricultural processing consider importing agricultural raw materials from Thailand for product development.
He highlighted Nakata Foods Co, a participant in the recent food and beverage trade fair Thaifex–Anuga Asia 2023, which expressed interest in importing passion fruit juice from Thailand to produce alcoholic beverages. Negotiations between companies are ongoing, said Mr Phumtham.
He said he told Mr Shuhei if other companies in the prefecture are interested in importing Thai products, the ministry is ready to provide full support.
Thailand's International Trade Promotion Department signed a memorandum of understanding with the Wakayama government on May 28, 2019, to promote cooperation in trade and the development of small and medium-sized enterprises (SMEs) in both countries. Mr Phumtham said the pact sparked continuous cooperation between the two regions.
"In the past, the Commerce Ministry participated in joint meetings with Thai private sector representatives and the Federation of Thai Industries to emphasise cooperation in the furniture industry. The goal is to provide opportunities for entrepreneurs in both countries to connect and develop products together by using innovations and knowledge to add value," he said.
"The ultimate aim is facilitating the expansion of export markets between the two regions, as well as increasing export opportunities to other countries."
Wakayama is located in the Kansai region and borders Osaka, Nara and Mie.
The prefecture can be accessed by Kansai airport or Shimotsu port and has a land transport network connected to major cities in the Kansai region.
SMEs in Wakayama primarily engage in textiles, furniture, leather products, machinery and household items. Key industries include petroleum, chemicals, steel, machinery and food production.
Investments in the prefecture have increased, with a maximum subsidy of up to ¥10 billion provided for businesses investing in or expanding their operations in Wakayama under certain conditions. This is the largest subsidy available in Japan, and there is a loan fund for new businesses or plant expansion.