Thailand's PM pledges full support for Japanese automakers, saying the government won't abandon long-standing investors and will remove obstacles to keep them confident in the country's automotive sector.
Prime Minister and Interior Minister Anutin Charnvirakul has dismissed reports that Japanese investors are moving their production bases out of Thailand, saying the government will not abandon long-standing investors and will fully support the country's traditional automotive industry.
Anutin said the government places importance on investors from all countries, particularly Japan, which has used Thailand as a major production base for decades and has become deeply integrated into the country's industrial sector.
The government is prepared to adjust business conditions and remove obstacles to ensure Japanese investors remain confident in Thailand, he said.
"The government's core policy is to remain open and improve various conditions to make business operations more flexible under our good relationship, so that we can achieve sustainable growth and long-term economic cooperation and maintain Japan's strong production base in Thailand," Anutin said.
He said the automotive industry was particularly important because most components, including engines, vehicle bodies, chassis and various systems, are manufactured in Thailand by Japanese brands.
"This is something we cannot abandon, and we must ensure that investors do not abandon Thailand either," he said.
Anutin said Japanese investors had been operating in Thailand for so long that the two countries' automotive production systems had become deeply intertwined.
"We are ready to ease obstacles to reassure them that we have not abandoned them. It cannot be a situation where we give them everything when we need them, but once they are doing well, we later add more conditions," he said.
EV rules to be reviewed
On electric vehicles, Anutin said he had assigned Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas to review measures governing investors from different countries.
The review aims to prevent Japan's automotive industry from being placed at a disadvantage as Japanese companies enter Thailand's EV sector, he said.
The government will consider restructuring relevant measures to ensure fair competition and maintain confidence among automakers from different countries, according to Anutin.
He acknowledged that EV manufacturers initially import many components from overseas, but said new domestic supply chains would eventually emerge.
These are expected to include batteries, computer systems and other components, which production requirements would encourage manufacturers to establish in Thailand, he said.
The government will also focus on maintaining political and economic stability as a key factor in attracting and retaining investment over the long term.
530 billion baht in foreign investment in first half
Anutin pointed to investment figures as evidence that foreign investors remain confident in Thailand.
He said foreign investment in Thailand exceeded 1 trillion baht last year, while actual foreign investment had already reached about 530 billion baht in the first half of the year.
