Published on 08/05/2013
Japanese SMEs want Thai bases More small and medium-sized Japanese companies, especially those in the autoparts sector, are interested in joining hands with Thai counterparts to manufacture their products here to serve the Asean market.
Sanchai: Chance for partnerships
Thailand remains the favoured hub for Japanese investors including a new wave of SMEs looking for opportunities arising from the launch of the Asean Economic Community (AEC) in 2016, said Sanchai Noombunnam, project director at UBM Asia (Thailand) Co. Japanese SMEs, mainly in the auto-parts sector, will come with production know-how and customers as they are suppliers for big car makers such as Nissan, Toyota and Honda in Japan. "They consider Thailand as their long-term partner," he said. It is a good opportunity for Thai SMEs to find Japanese partners as the partnerships will help them increase competitiveness and survive in the long term. Mr Sanchai said Thai SMEs will be able to learn from their counterparts about automated or semi-automated production systems that can help lower costs as wages rise and market competition becomes tougher.
Normally, each Japanese SME sets an investment budget of about 200 million baht for a joint venture in Thailand. Mr Sanchai said Japanese SMEs are also looking to benefit from the AEC when they set up production bases here. "They will produce major parts in Thailand and import simple parts, whose manufacture is not complicated, from neighbouring countries. Their products will serve clients here or be exported to Japan or other countries," he said. The Bureau of Supporting Industries Development estimates that more than 500 Japanese SMEs will show strong interest in co-investing with Thai companies this year.