Japanese to invest 10 billion baht in Thailand’s S-curve industries
Two Japanese corporations are set to inject a total of 10 billion baht into Thailand’s S-curve industries, according to the Thai Industry Ministry. This initiative encompasses 12 industries earmarked for development by the Thai government, including smart electronics.
Air and compressor manufacturing are the sectors that have particularly piqued the interest of the two firms, said Industry Minister Pimphattra Wichaikul.
“Both companies are supporting the Thai economy by increasing employment and exports.”
This investment announcement followed a recent joint roadshow in Japan by the Industrial Estate Authority of Thailand (IEAT) and the Board of Investment (BoI). The objective of the roadshow was to invite investment into the promoted industries.
According to the ministry, compressors, electrical appliances, and solar panels are among the sectors expected to experience growth in Thailand. It was also mentioned by officials that several other Japanese investors are considering investing in Thailand, already a crucial production base for Japanese firms.
The Board of Investment noted the crucial role of government incentive packages and the Eastern Economic Corridor (EEC) in attracting foreign investment. The EEC, spanning parts of Chon Buri, Rayong and Chachoengsao, is anticipated to evolve into the nation’s high-tech industrial hub, hosting the 12 S-curve industries.
Veeris Ammarapala, governor of the IEAT, revealed that Japan leads in terms of investment value in Thailand. The 1,973 Japanese companies present in the country account for 29% of the total foreign investment, amounting to 2.85 trillion baht.
The majority of these Japanese firms, totalling 1,451, have set up their production facilities within the EEC area, while 522 operate their businesses in other parts of the country. These companies have invested across a broad spectrum of industries, from automobiles, steel, machinery, electronics, plastics, and chemicals, to rubber and food.
Last year, the IEAT announced that it was negotiating with the Trade Policy Bureau of Japan’s Ministry of Economy, Trade, and Industry about investing in clean energy within its industrial estates. The authority’s plans include investing in hydrogen energy projects, and incorporating the use of hydrogen-powered vehicles for worker transportation within its industrial estates, as part of a move towards clean energy, reported Bangkok Post.
