Japan companies in Thailand should make quick decisions amid Chinese rise, says PM Srettha

Srettha Thavisin says Japanese firms should make quick decisions in their business operations amid an increasing market share by Chinese companies

‘You are not alone in the world’, reminded the visiting PM, who agreed to incentives to help Japanese companies make more electric vehicles in Thailand

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Japan’s Prime Minister Fumio Kishida (centre) and his wife, Yuko, welcome Thailand’s Prime Minister Srettha Thavisin (left) at Akasaka Palace state guest house in Tokyo on Saturday. Photo: EPA

Published: 11:46am, 17 Dec 2023

Thai Prime Minister Srettha Thavisin said on Saturday that Japanese companies in Thailand should make quick decisions in their business operations amid an increasing market share by Chinese companies.

Srettha, who is visiting Tokyo for a summit between Japan and Association of Southeast Asian Nations members slated for Sunday, met executives of several Japanese carmakers here on Friday and agreed in principle about tax incentives to help them produce more electric vehicles in Thailand, he said in an exclusive interview with Kyodo.

Thai Prime Minister Srettha Thavisin speaking during an interview in Tokyo on Saturday. Photo: Kyodo

The carmakers included Toyota, Honda, Nissan, Isuzu and Suzuki, said Srettha, the businessman-turned-politician.

“You are not alone in the world of course. While the others are making quick decisions,” Japanese companies need to make certain adaptations, Srettha said. Chinese carmakers have seen their share in the Thai EV market reach almost 80 per cent of late, according to a local bank research.

“Thailand will continue to be a base for automobile exports,” he said, adding he hoped Japanese carmakers, which have been manufacturing cars in Thailand for more than 60 years, would continue to contribute to the Thai economy.