There already has been some significant contributions from Japan, when it comes to investing in Thailand. It is expected that within a span of the next 10 years if everything goes as per plan; Thailand is going to emerge as one of the major economic forces in South-East Asia. Already, considering the future prospect of growth; many foreign companies have started showing interest to float their business in Thailand.
It has been estimated by the experts that within the next decade, Thailand is about to experience a massive improvement in the industrial and manufacturing sectors. As per recent news updates, some of the economic giants of Asia are willing to invest in Thailand. With foreign direct investment coming in, the country’s NI or National Income is like to grow at a tremendous speed. Talking of foreign investment, Japan is at the top of the list. They not only have shown interest in investing money in Thailand but at the same time, they are willing to get into trade partnership, which would help to boom the economy of Thailand to a great extent. Besides, Japan is also interested in the transfer of technology and knowledge to Thailand.
Thailand 4.0 – A New Economic Policy and Japan’s Contribution
One of the latest economic policies of Thailand is Thailand 4.0, which aims towards advancing and upgrading the industrial sector of this country. This process involves the modernization of the present commercial processes and re-engineering the technological and digital tools. Besides, they are also focusing on robotics in order to achieve cost-effective production, which would help the Thai industries gain a competitive edge in the global market. Japan has been a major contributor to this entire process. They have been transferring technology, offering training and helping the Thai government to create an ideal infrastructure for the development of their industrial sector. It is expected, that after the successful implementation of this project, there would be a massive rise in Thailand’s employment index, which would help to improve their GDP to a great extent.
One of the main aims of this project is to train and educate the workers at various levels which would help them attain more efficiency and productivity. Japan has been playing a very important role in this regard. They have agreed to transfer the latest technology to help Thailand achieve its goal of industrial modernization.
Sectors where Japan would Invest
There are a couple of industrial and manufacturing sectors which have been identified by the Thai authorities to put more emphasis on. Japan has agreed to come in with investment in terms of capital, technology, and other aspects. Here are some of them
- Smart Electronics
- Agriculture and Biotechnology
- Digital Enhancement
- Wellness and Health Tourism
- Medical Science
Recently WorldFolio has reported that the Ministry of Commerce of Thailand Sontriat Sontijirawong has stated “Japanese investment is an investment of quality. Japan not only invests to produce here, but they also transfer knowledge and technology. Japanese companies are very keen in terms of technology transfer, providing skills and being ahead in terms of innovation and quality.” This indicates that Japan is not willing to invest capital in Thailand, but at the same time, they are equally eager to train and educate the Thai workers on different latest technologies.
How can Japan Contribute
Here are a couple of segments in which Japan has decided to invest to help Thailand improve its industrial and economic infrastructure
- Capital Investment: Though undisclosed, yet it is estimated that Japans investment would be something, which has never been experienced by the Thai economy
- Technology Transfer: Japan is the world’s hub for the latest and advanced technology. They have decided to transfer their technologies to Thailand in order to assist them to improve their industrial and manufacturing infrastructures.
- Training: In order to make sure that the technology is being used at the optimum level; it is very important to have adequate training on them. Besides transferring technology; Japan has also decided to offer training to the Thai labor force, on how to utilize these technologies to yield maximum output.
The relationship between Thailand and Japan goes back to many years. Thailand would definitely benefit from this investment which is Japan has decided to make in the Thai industrial sector.
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