Japanese investment in Thailand is expected to become more vibrant after the timeline of the government's much-touted Eastern Economic Corridor (EEC) is clarified, says Kalin Sarasin, chairman of the Thai Chamber of Commerce.
After a meeting Tuesday with Hiroki Mitsumata, president of the Japan External Trade Organization (Jetro), Mr Kalin said the Japanese unit reaffirmed high investment confidence in Thailand.
Mr Kalin quoted Mr Mitsumata as saying that the latest survey by Jetro on Japanese firms operating in Thailand found that 62% of them plan to increase investment, especially in the EEC area.
"Jetro has reaffirmed that Japanese investors are keen to invest more in Thailand, both for investment and investment expansion," Mr Kalin said. "More importantly, some interested Japanese investors have never invested in Thailand."
According to Mr Kalin, Japanese investors also predicted that the overall business climate in the second half of the year would continue to improve, while Japanese firms expect higher exports for the period, particularly in food, electric appliances, electronics and chemicals.
They were also upbeat about the sales prospects of the retail and trading sector, he said.
Mr Kalin said Japanese investors are keen to invest in food, electronics and machinery, mainly for re-export in Asean.
Visit Limlurcha, vice-chairman of Thai National Shippers' Council, said Thailand's rapid logistics development is also instrumental in drawing Japanese and foreign investment.
He cited the World Bank's biennial Logistics Performance Index, which raised Thailand's ranking to 32nd this year from 45th in 2016, based on Thailand's massive investment in transport infrastructure and relevant legal reforms.
Thailand's ranking was second only to Singapore in Asean, overtaking Malaysia, and was seventh in Asia.
Thailand scored 3.41 out of five, up from 3.26 in 2016.
"Jetro has also expressed concerns about congestion at Laem Chabang port, which affects their operation costs," Mr Visit said. "The council has already proposed that the government tackle the issue."
In a separate development, Kyodo reported Tuesday that Japanese firms in Thailand are considering wage hikes in light of the economic recovery.
Japanese firms operating in Thailand intend to carry out wage hikes this year, thanks to a brighter economic outlook in the Southeast Asian country.
According to a survey by the Japanese Chamber of Commerce in Bangkok, member manufacturers and non-manufacturers plan to raise wages by 4.8% and 4.9% on a median figure basis, up 0.2 and 0.3 percentage points respectively from the previous year.
Japanese subsidiaries and affiliates in Thailand's manufacturing sector will implement higher salary increases for two years in a row, while those in the non-manufacturing sector, including representative offices, will do so for the first time in three years, the survey found.
Japanese firms in Thailand are raising wages every year, though average monthly salaries in the country have not grown since the military government took over in 2014, said Kazuma Takago, first secretary at the Japanese embassy in Bangkok.
The survey results are based on data collected from 568 chamber members in April.