- Region: Asia
- Manufacturing and Services
September 12, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a Memorandum of Understanding (MOU) on cooperation with the Office of the Board of Investment (BOI) in the Kingdom of Thailand, aiming to promote information sharing on the investment opportunities, and climate in Thailand. Both sides agreed to exchange information on various investment issues such as BOI investment policies and incentives, investment trends in Thailand, and the operations and policies of JBIC in relation to overseas investment credits.
- Thailand was considered early on as one of the most promising destinations of overseas business development by Japanese manufacturers and other firms that have made direct investment in a broad range of industries, including automobiles, electrical equipment and electronics, precision machinery, and food processing. According to BOI, from January 1970 to December 2010, 1,868 Japanese companies receiving BOI investment privileges had operational bases in Thailand. Japan remains the No. 1 investor country in Thailand, accounting for 40% of total foreign investment. In the eyes of the Japanese firms, the country continues to be a significant investment destination not only because of traditional reasons such as affordable labor and serving as a supply base for assembly manufacturers, but also with Thailand located at the heart of Asia in easy reach of ASEAN countries. Furthermore, Thailand has become a sales market due to the increasing domestic demand. In the Survey Report on Overseas Business Operations by Japanese Manufacturing Companies (22nd annual survey)*2 that JBIC announced in December 2010, Thailand ranked the 4th among the most promising countries for overseas business in the long term.
- BOI is an institution under the Thai Ministry of Industry, initiating investment promotion policies and offering investment incentives and services with guidance from its Board, which is comprised of economic ministers, representatives of industrial and business associations and academics, and which is particularly chaired by the prime minister. Since BOI determines the country’s investment priority sectors, as well as the terms and conditions on tax and non-tax incentives for individual investment projects, it maintains an essential role for Japanese firms making investments in Thailand.
- The signing exchange of the MOU between JBIC and BOI is expected, through information exchange and co-organizing of seminars and meetings, to help forge closer ties between the two institutions, thereby leading to efficient project implementation by Japanese firms, including SMEs and mid-tier companies.
- By making these arrangements, JBIC will continue to support the maintenance and improvement of the international competitiveness of Japanese industries.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 See the press release dated December 3, 2010.