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16 Jan 2013

International Economy

[AEC Plus] Japanese PM’s Visit Reflecting Thailand’s Importance in ASEAN (Current Issue No. 2303)

Fresh from being re-elected as Japanese Prime Minister, Mr. Shinzo Abe is scheduled to visit Vietnam, Thailand and Indonesia during January 16-19, 2013. His planned visit to these three ASEAN member states follows his announcement of a massive domestic stimulus package earlier this month, intended to breathe new life into Japan's moribund economy. This visit to Thailand indicates that Japan continues to place importance on Thailand as a major investment destination. Topics of mutual interest between Japanese and Thai leaders are to include economic cooperation, bilateral trade and investment, plus discussions on major Thai infrastructure development projects.
Although Japanese investors remain interested in Thailand, competition from other ASEAN member states to attract foreign investments is intensifying, meaning that Thai investors may have to direct their investments to the same destinations where Japanese companies will decide to invest within other ASEAN states. This would be necessary since one of the Japanese business sector's strategies is to diversify their investments within ASEAN.

Strengthened trade and business relations between our two nations following Mr. Abe's visit to Thailand, along with positive results expected from Japan's latest economic stimuli, should help support our exports to Japan this year.

International Economy