Thailand Assures Japanese Investors It Won't Be Abandoned

Prime Minister Anutin Charnvirakul dismissed rumors of Japanese manufacturers relocating production, reaffirming the government's commitment to supporting long-standing investors while attracting new capital and removing business obstacles to preserve Thailand's position as an automotive manufacturing base and global supply chain hub.

Anutin told reporters that the government prioritizes investors from all countries, particularly Japanese manufacturers who have used Thailand as a primary production base for decades and have become integral to Thai industry. The government is ready to provide assurance that Thailand will not abandon these long-established investors. He confirmed the government's core policy is to remain open and adjust conditions to create business flexibility and good relationships, promoting sustainable growth and long-term economic cooperation while maintaining a strong Japanese manufacturing foundation in Thailand.

The government emphasizes the automotive industry's importance, with most components—engines, bodies, chassis, and systems—currently produced domestically under Japanese brands. Anutin stressed this sector cannot be abandoned and investors must be given confidence to stay. "Japanese investors have been here since the earliest stages, so long that it's impossible to separate Thailand from Japan in terms of manufacturing base," he said. "We're ready to remove obstacles to reassure them we're not abandoning them—not one where we accept everything when we need them, then add conditions later once they succeed."

Regarding electric vehicles, the government has assigned Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas to review approaches for supporting investors from various countries, ensuring the automotive industry does not suffer disadvantages as Japan invests in this sector. Structural adjustments will be made to ensure fairness and maintain producer confidence in Thailand.

Although EV production will initially require significant imported components, a new domestic supply chain will inevitably develop, including batteries, computer systems, and other parts that production mechanisms will force to establish bases in Thailand. The government will maintain political and economic stability to attract and retain long-term foreign investment.

"We must focus on the numbers since this government took office," Anutin said. "Foreign direct investment into Thailand increased significantly last year, breaking the one trillion baht mark, so there's no evidence of production base relocation or investment slowdown due to Thailand being unprepared."