JAPANESE small and medium-sized enterprises (SMEs) in various manufacturing and service sectors are looking at using Thailand as a base for expansion into other ASEAN markets.

    Thai Industry Minister Chakramon Phasukavanich said that under Japanese Prime Minister Shinzo Abe’s policy to help SMEs invest overseas, many companies wanted to expand into Thailand because of the two countries’ close relations and their view that Thailand is a center for ASEAN linkage.

    “With the real intention of Japan SMEs to expand their businesses into Thailand, the ministry is targeting 500 Japan SMEs investing in Thailand this year,” Chakramon said.

    To facilitate Japanese investment, the ministry will launch a program to match Thai and Japanese SMEs as partners for starting businesses in Thailand.

    Under Abe’s policy, the Japanese Government wants at least 10,000 SMEs to begin operating abroad between 2014 and 2018 because of the country’s economic-growth slowdown and its rising number of elderly people.

    By investing overseas, SMEs tap a bigger market while ASEAN — especially Thailand — is a target destination for new investment thanks to the region’s rising economic growth, its support infrastructure, and its supply chains and facilities to support business expansion.

    Chakramon said more Japanese SMEs commencing operations in Thailand would help promote the growth of supply-chain industries and increase the value add in many products and services.

    When asked if Thai businesses should be worried about competition from Japanese SMEs, he said they should not worry too much because Japanese companies wanted Thai partners.

    (SD-Agencies)