Commerce minister eyes Japan as leading business partner
MCOT News, Thailand
Commerce minister eyes Japan as leading business partner
31 January 2006
TOKYO, Jan 30 (TNA) - Deputy Prime Minister and Commerce Minister Somkid Jatusripitak has targeted Japan as the kingdom’s primary business partner in developing Thailand as an Asian hub for electronics and electrical equipment production.
Mr. Somkid was interviewed on his visit to Japan for talks on the proposed Thai-Japan Free Trade Area Agreement (FTA), saying he would meet five Japanese ministers to finalise the negotiations.
Some additional issues must be discussed before the pact will be signed by the prime ministers of the two countries in April, he said.
However, he added that the Japanese-Thai FTA is not solely aimed at increasing the value of bilateral trade but Thailand also wants Japan as its partner and to collaborate in technology and human resource development.
Japanese technology will help Thailand maximize its business potential, and the value of trade will definitely rise after the FTA — but that is not the main target, he said.
The Thai delegation also includes Industry Minister Suriya Jungrungreangkit and Board of Investment (BOI) secretary-general Sathit Sirirangkamanond.
The issue of making Thailand as Japan’s offshore production base for electronics and electrical equipment will be on the agenda, Mr. Somkid said.
It is expected that the export value of these two categogies will double in the next three to four years. The value of Thailand’s current exports of electronic products and electrical equipment is Bt1.5 trillion (about US$37.5 billion) a year.
Mr. Somkid said he also planned to promote Thai food, products, and tourism during his visit to Tokyo and Sapporo.
The Department of Export Promotion (DEP) will talk with Japan External Trade Organisation (JETRO) to help Thailand develop human resources and increase competitiveness of Thai products in the global market.
The signing of a Memorandum of Understanding (MoU) between DEP and JETRO is due in the middle of this year.
On this occasion, the largest Thai contribution company, Saha Pathanapibul will sign an MoU with Lion Corporation Japan, the Japanese consumer products giant, to shift its production base to Thailand and invest more in research and development.
Mr. Sathit said that since BOI introduced new promotion privileges for investors last month, several Japanese electronic and electrical products business have expressed interest in investing in Thailand.
Under the BOI’s new investment conditions, investors will be entitled to special benefits if they are engaged in technology transfer to Thailand and assist the country in research and human resource development.
