Thailand’s political stability has made it one of the most attractive locations for Japanese investors. Between 1985 and 2016, Japan invested in Thailand around a cumulative total of 2.9 trillion baht (US$85 billion; 2017 rates) that is more than double the USA (the next biggest investor) Besides, Thai agricultural sector has contributed affordable food and labor plus surplus capital to support manufacturing investments while providing finished products as well as raw materials for agro-industries.
Coming to the present, very recently a massive Japanese trade mission was led to Thailand that involved 570 investors. The trade mission was headed by Hiroshige Seko, the head of the Japanese Ministry for the Economy and included a close look in the Eastern Economic Corridor (EEC), Chon Buri, Chachoengsao, and Rayong.
The METI trade mission suggested Japan moving to compete with China’s actions in Thailand. There’s no denying of the fact that China is making quite an aggressive move into ASEAN. In fact they have secured a major agreement for investment in the high-speed rail in Thailand, Indonesia, and Laos. In contrast, Japan is upgrading their production base across the world by bringing in automation, the Internet of Things, and robotics to manufacturing.
Thus, Japan is still continuing to be the largest investor in Thailand while Chinese investors are catching up the pace. It is expected that both Chinese and Japanese direct investment would make Economic Eastern Corridor investment more attractive. Mr. Rattanakhamfu said that EEC is attractive because of so many reasons, including infrastructure projects, high-speed rail and motorways, airports and seaports with other countries.
