In a move to cultivate synergistic relations and drive mutual growth, Thailand is setting its sights towards the establishment of new alliances with Japan’s Wakayama prefecture, specifically targeting prosperous prospects within the furniture production and agricultural processing industries. The primary goals of this promising business cooperation include the augmentation of product development and broadening the spectrum of export opportunities.
Commerce Minister Phumtham Wechayachai, in a dialogue with Wakayama’s Governor Kishimoto Shuhei held recently, advocated for a conducive business environment that would enable Thai and Japanese entrepreneurs to cohesion, particularly within the furniture production and agricultural processing domains. The idea is to foster the creation of collaborative products that reflect the distinguished expertise of both nations. Additional to this, Minister Phumtham also made a strong case for agricultural entrepreneurs of Wakayama to import raw materials from Thailand as a measure to solidify the envisioned synergy.
Take, for instance, the case of Nakata Foods Co, one of the esteemed entities at the recently held Thaifex-Anuga Asia 2023 food and beverage trade fair. The company has expressed keen interest in importing passion fruit juice from Thailand for the production of their alcoholic beverages. According to Minister Phumtham, negotiations among the companies on this particular topic are currently in progress. He further reaffirmed the constructiveness of the ministry’s stance on the issue, asserting its readiness to extend full-fledged support to other prefecture companies interested in importing Thai goods.
Heading back to May 28, 2019, Thailand’s International Trade Promotion Department He inked a Memorandum of Understanding (MoU) with the government of Wakayama. This pivotal agreement laid the blueprint to invigorate trade collaboration and propel the growth of small and medium-sized enterprises (SMEs) within both nations. Minister Phumtham reiterated how this agreement has been the cornerstone for the sustained collaboration between the two regions.
The Thailand’s commerce minister stated how in the past, various joint meetings were conducted with Thai private sector counterparts and the Federation of Thai Industries to underline the importance of fostering cooperation within the furniture industry.
“The objective, quite clear, is to create platforms for entrepreneurs in both countries to sync up and co-develop products while leveraging modern innovations and knowledge to maximize value.”
Boosting the expansion of export markets between the two regions and augmenting export opportunities to other nations is the core ambition of this partnership.
Located in the heart of Kansai region, adjacent to Osaka, Nara, and Mie, Wakayama stands as a central hub accessible via the Kansai airport or Shimotsu port. This prefecture also hosts a rich network of land transport connected to major cities within the Kansai region.
Wakayama’s SMEs are chiefly known for their contributions to the textiles, furniture, leather goods, machinery, and household item sectors. Furthermore, its critical industries include petroleum, chemicals, steel, machinery, and food production.
Investments are continually flowing into the prefecture, with an appealing subsidy of up to ¥10 billion (2.92 billion baht) made available for businesses looking to invest or expand their operations in Wakayama under specific criteria. This subsidy package is by far the highest offered across Japan, with a dedicated loan fund instituted to aid new business startups or plant expansions.
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