Bangkok, January 13, 2022 – The Ministry of Industry (MOI) and Japan’s Ministry of Economy, Trade and Industry (METI) are working closely on strategies to revitalize both countries’ remarkable potentials for economic and industrial development. This is to provide opportunities from the ASIA-Japan Investing for the Future Initiative (AJIF) as part of Thailand’s Bio-Circular-Green Economy (BCG model) through the joint development of innovation and technology, human capital capacity, digital technology in SMEs and supply chain. as well as coping with economic and social changes. In addition, he is continuing his economic expansion in Thailand and is investing around 70 billion baht in various projects.
According to Minister Suriya Juangroongruangkit, Minister of Industry, the COVID-19 epidemic continues to affect economic activities and industrial sectors in many countries. Therefore, in order to reinforce an ever-changing environment, a method of rejuvenation is vital. During his visit to Thailand, the Ministry of the Interior discussed with Mr. Hagiuda Koichi, Minister of METI, Japan, ways to restore the economy and industry to find ways to mitigate existing change and volatility, as well as developing the BCG model in collaboration with the AJIF by defining a framework document on co-creation for innovative and sustainable growth.
The framework focuses on innovation and technology, human capital capacity, digital technology in SMEs and development of the supply chain with the aim of promoting Japanese investments in Thailand, building a regional connection and exchanging outstanding potentials of both countries in order to create opportunities in different dimensions together.
Mr Suriya also stated that there are three areas of this particular collaboration: (1) Innovative and sustainable technologies and human capital capacity building, with an emphasis on developing and promoting target industries including next generation vehicles, smart electronics, advancement agriculture, food processing, Robotics, automation, aviation, logistics, digital medical center, bio-industry, circular economy and green economy, as well as supporting human resource development to encourage co-creation for innovative and sustainable growth in Thailand, especially in developing Thai skills and knowledge of engineers in intelligent manufacturing and using their skills, (2) accelerating the growth of small and medium-sized enterprises (SMEs) with a focus on promoting digital solutions in Thai SMEs through cooperation with the Industrial Transformation Center (ITC), as and the Connecting Thai and Japanese SMEs through efforts such as business matching and digital platforms and (3) Supply Chain Co-Cr We are focused on building resilient and competitive supply chain in Mekong region, improving the quality and value of the supply chain through digital Transformation and personnel development as well as the establishment of a circular and green supply chain.
“Working with competent countries is a crucial strategy in dealing with the global economic crisis. Such countries can help us to achieve our goals by pooling our diverse strengths in good time. Through the BCG model, Japan, as a longstanding ally of Thailand, intends to bring in the innovations and technologies it has developed to build capacity for Thailand’s select industries. They also intend to increase the human resource potential of both the labor force and a group of technology-savvy young people, including specialized Japanese SMEs, to adapt to the changing global environment. “
Currently, the MOI and METI, Japan are collaborating on various initiatives including: (1) Establishing a comprehensive end-of-life vehicle management system (ELVs) in Thailand. Since car scrap is difficult to dispose of in Thailand, working with the Industrial Estate Authority of Thailand would reduce environmental pollution while supporting the government’s BCG policy. (2) Smart Monosukuri, Lean Automation System Integrator (LASI) and Lean IoT Plant Management and Execution (LIPE). The above projects aim to build human resources in order to upgrade the industrial sector to the status of SI (System Integrator) and to support the transition to a Smart Factory through the use of AI-IoT automation as a mechanism to increase productivity.
Mr Suriya stated that despite a crisis in 2021 that damaged Thai confidence, Japan remains a key economic partner. According to a BOI study, Japan is the largest source of investment value in foreign projects eligible for investment promotion, accounting for 19% of Thailand’s total foreign investment. Major projects (1,000 million baht or more) account for the majority of the investment value, including the manufacture of petrochemical products (PET resin) valued at 3,062 million baht, the manufacture of yarns or fabrics with special properties valued at 2,597 million baht, and research and development activities (Production from microbial cells, plant cells and cells) worth 1,990 million baht. The bearings for the automotive industry are also valued at 1,680 million baht. Japan has several projects that were submitted for funding in the first nine months of 2021. The development is the focus of 125 projects for a total of 67,817 million baht.