Understanding Business and Economic Ties Between Japan and Thailand is essential for any country that wishes to grow both economically and politically. These two countries have an important role in the regional economic structure, as they are connected by a land route passing through Laos, Vietnam and Cambodia. Additionally, there is an overland route which passes through northern Thailand, Laos, northern Myanmar and the Mekong Delta in Southern Thailand. The countries share economic and political interests, and a solid friendship between the two. In this article we will take a look at some of the key economic issues between Japan and Thailand, as well as how those issues can affect the countries involved.
For many years now, the two countries have been trading competitively and effectively, with extensive cross-border trade and regular visits from Japanese businesspeople to their counterpart in Thailand. However, recent events have shocked and stirred the Thai public, who are worried about the impact on their small-business community – a fear heightened by the fact that the recent incidents seem to have targeted Thais in particular. Recently, in the city of Mukding Sat, a Chinese restaurant was burnt down by a fire caused allegedly by a Chinese member. According to one report, that incident marked the first such incursion since July last year when a Chinese boat was also burnt down in the same city.
In response to this latest incident, the Japanese government has expressed its strong support for its Thai counterparts and promised that all measures would be taken to apprehend the criminals. The authorities have also cancelled a scheduled high-level meeting with its South Korean counterparts, scheduled for the next week. On the other hand, there are no indications that the Japanese government has instructed its Thai counterpart to scrap the canceled meeting, despite the obvious sensitivity of the issue. In fact, the Thai foreign ministry has already said that the canceled meeting is due to Thailand’s commitment to protect the lives of its citizens, in view of the renewed attack on the Japanese in Mukding Sat.
With this backdrop, one might wonder what the relationship between these two countries is really all about. Over the past several years, both countries have made efforts to bolster their economic partnership through various measures. Many international businesses now set base in either Bangkok or Kuala Lumpur, and many Japanese businessmen have established manufacturing facilities in the country. Given its close proximity to the growing economic hub of China, Thailand offers not only a stable market but a favorable environment for doing business. Not only does the country offer low labor costs and competent workforce, but also has a conducive business environment. Furthermore, Thailand has proved itself to be an important trading partner and major investor in the Chinese economic growth.
On the flip side, there are some analysts who see Japan’s interest in investing in the Southeast Asian country as nothing more than a move to secure its own economic future. Navigate to this website to learn more. Although there are certainly some truth to that, both countries share much of the same vision in terms of promoting economic development and are looking forward to establishing a stronger partnership in the coming years. For Japan, its experience in dealing with the former Southeast Asian tigers will provide a welcome boost to its economy. Meanwhile, for Thailand, the vision of building a strong network of economic, political, and trade relationships in the region will serve as a great boon for its economy. Moreover, the government’s long-term plan to stimulate economic growth – the Thailand Investment Program (TIP) – will surely take effect in the market, strengthening the hand of the Thai government in its bid to enhance its ties with the Association of Southeast Asian Nations.
In the end, it is the current global economic and political situation that has brought the two countries together. At the turn of the century, they were trading with only Japan and the Soviet Union, and today, they have become a key member of the Asean economic community. The current economic reforms implemented by the Thai government, such as the Thailand Open Markets and the Thailand-ASEAN Free Trade Agreement, have played a major role in improving Thailand’s image in the global market. Moreover, the Thai government’s long-term plan to boost economic growth is working – and now is the right time to consider investing in the country.