Prime Minister Anutin Charnvirakul on Monday urged Thailand and Japan to move from producing goods for one another to producing them together, saying closer supply-chain ties would help sustain Japanese investment as the automotive industry shifts towards electric vehicles.
He made the remarks while meeting Team Thailand in Tokyo to outline policy on bilateral relations before travelling from Japan to New York to attend the 81st session of the United Nations General Assembly.
Mr Anutin said technology, the environment and geopolitics were key drivers of change, requiring Thailand and Japan to base their future cooperation on mutual interests and work as partners by combining their respective strengths.
“The key is to move from producing ‘for’ each other to producing ‘together’ and becoming part of each other’s supply chains,” he said.
His remarks appeared intended to address concerns that Japanese companies could shift production bases out of Thailand.
“The form of cooperation and investment might have changed from the past, but Japanese investment remains important to Thailand,” he said.
“Thailand is now going through a transition and becoming more closely connected with global markets. While this may make the country appear less dependent on Japan in some areas, it does not mean Thailand has lost its production capabilities.”
Thailand has become more diversified in investment sources, technology, and international cooperation, while developing its own infrastructure and industrial capabilities.
“In the automotive sector, decades of cooperation with Japan have helped establish a strong supply chain, with many automotive parts produced domestically,” he said.
However, the shift to electric vehicles has transformed the competition, with investors from other countries entering the battery, electronics and semiconductor sectors. He said cooperation with Japan would likely take the form of direct investment.
Thailand should build on its existing manufacturing base and develop supply chains that can support future industries, particularly digital technology, electronics and other advanced technologies, he said.
“This would create opportunities for Thai businesses to join higher-value production chains,” he said.
He said Japanese businesses remain interested in Thailand and the region, and the country should use its long-standing ties with Japan to expand investment in existing supply chains while developing higher-value industries.