Japanese investors have cited high labor costs as the biggest obstacle to investing in Thailand.
These concerns were relayed by Takeo Kato, president of the Japanese Chamber of Commerce in Bangkok, during a seminar on new dimensions of Thai-Japanese economic cooperation organized by the Thai Department of Trade Negotiations.
Takeo also pointed out that foreign entrepreneurs face strict tax regulations and urged Thai authorities to consider revising these codes in order to better facilitate investment from abroad.
Hagiuda Koichi, Japan’s minister of Economy, Trade and Industry, nevertheless noted that Thailand has a major advantage as a regional economic center and an important supply chain hub. He added that Japan has initiated a new investment policy focusing on creative partnerships to promote sustainable economic and social development through innovation.
Nobuhiko Sasaki, CEO & Chairman of Japan External Trade Organization (JETRO), said more Japanese firms invested more in Thailand than any other nation in Southeast Asia. He also said more companies could potentially follow suit in the post-pandemic era.
Thai Deputy Commerce Minister Sinit Lertkrai meanwhile said the Japan–Thailand Economic Partnership Agreement (JTEPA), together with the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP) and Regional Comprehensive Economic Partnership (RCEP), would play a crucial role in promoting bilateral between the two great nations.