Japan METI assists Thailand MOI in accelerating economic recovery

Mr. Hagiuda Koichi (left), Japanese Minister of Economy, Trade and Industry and Mr. Suriya Juangroongruangkit (right), Thai Minister of Industry jointly sign a framework document on co-creation for innovative and sustainable growth at a ceremony held at Shangri-La Hotel Bangkok on January 13, 2022.

Bangkok, January 13, 2022 – The Ministry of Industry (MOI) and the Ministry of Economy, Trade and Industry (METI) of Japan are working closely together on strategies to revitalize the remarkable economic and industrial development potentials of the two country. It is to provide opportunities from the ASIA-Japan Investing for the Future (AJIF) initiative within the framework of Thailand’s bio-circular-green economy (BCG model) by jointly developing innovation and technology, human capital capacity, digital technology in SMEs and the supply chain, as well as coping with economic and social changes. Additionally, continues to push its economic expansion in Thailand, investing around 70 billion baht in various projects.

The COVID-19 outbreak continues to affect economic activities and industrial sectors in many countries, according to Mr. Suriya Juangroongruangkit, Minister of Industry. Therefore, to reinforce an ever-changing framework, a method of rejuvenation is essential. During his visit to Thailand, the Ministry of Home Affairs discussed ways to restore the economy and industry with Mr. Hagiuda Koichi, Minister of METI, Japan, to find ways to mitigate the changes and existing volatility, as well as developing the BCG model in collaboration with 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 supply chain development with the aim of fostering Japanese investment in Thailand, establishing regional connection and to exchange the outstanding potential of both countries to jointly create opportunities in various dimensions. .

Mr. Suriya Juangroongruangkit, Thailand’s Minister of Industry, said that despite a crisis in 2021 that damaged Thailand’s confidence, Japan remains a key economic partner.

Mr. Suriya also said that there are three areas of this certain cooperation, which are:
(1) Innovative and sustainable technologies and capacity building in human capital, focusing on the development and promotion of targeted industries, including next-generation vehicles, smart electronics, advanced agriculture, food processing, robotics, automation, aviation, logistics, digital, medical hub, bioindustry, circular economy and green economy, as well as supporting human resource development to promote co-creation for innovative and sustainable growth in Thailand, in particular by developing the skills and knowledge of Thai engineers in smart manufacturing and using their capabilities.

(2) Accelerating the growth of small and medium-sized enterprises (SMEs), focusing on promoting digital solutions among Thai SMEs by collaborating with the Industrial Transformation Center (ITC), as well as connecting Thai SMEs and Japan through efforts such as business matchmaking and digital platforms.
(3) Supply chain co-creation, focusing on building a resilient and competitive supply chain in the Mekong region, improving the quality and value of the supply chain through digital transformation and human resource development, and building a circular and green supply chain.

“Cooperation with relevant countries is an essential strategy to deal with the global economic crisis. These countries can help us achieve our goals by combining our various strengths in a timely manner. Through the BCG model, Japan, as a long-standing ally of Thailand, intends to bring the innovation and technology it has developed to build capacity in selected Thai industries. They also intend to increase the potential of human resources, both in the workforce and in a group of young people interested in technology, including specialized Japanese SMEs, in order to adapt to the changing global context.

Currently, the Ministry of Interior and METI of Japan are working together on various initiatives, including: (1) Establishment of a comprehensive end-of-life vehicle (ELV) management system in Thailand. Since disposing of automotive waste in Thailand is fraught with challenges, working with the Industrial Estate Authority of Thailand would reduce environmental impact 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-mentioned projects are aimed at empowering personnel to move the industrial sector to SI (System Integrator) status and facilitate the transition to a smart factory by leveraging AI IoT automation as a mechanism to increase productivity.

Mr Suriya said that despite a crisis in 2021 that damaged Thailand’s confidence, Japan remains a key economic partner. According to a BOI study, Japan is the largest source of investment value in foreign projects approved for investment promotion, accounting for 19% of Thailand’s total foreign investment. Large projects (1,000 million baht or more) account for the majority of the investment value, including the production of petrochemical products (PET resin) worth 3,062 million baht, the production of wires or of tissues with special properties worth 2,597 million baht, and research and development activities (production using microbial cells, plant cells and cells) worth 1,990 million baht . Bearings for the automotive industry are also valued at 1,680 million baht. Japan has several projects that have been submitted for promotion in the first nine months of 2021. The development has 125 projects totaling 67,817 million baht.

The Japanese and Thai delegations gather for a group photo during the signing ceremony of the framework document on co-creation for innovative and sustainable growth.

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