More than 700 Japanese companies under a Thailand-Japan joint effort to promote small and medium-sized enterprises (SMEs) have started real investment in Thailand this year, says Nangnoi Wetayapong, director of the Bureau of Strategies Management under the Department of Industrial Promotion (DIP).
The initiative is part of a project to bring Japanese SMEs from major prefectures to start and expand investment in Thailand.
The expectation is for billions of baht in investment to pour into the Thai economy, Mrs Nangnoi said.
SMEs in 17 of Japan's 47 prefectures have signed a memorandum of understanding with the Industry Ministry over the past few years to work together in bringing more Japanese SMEs to invest in Thailand.
Thailand's DIP and the Japan International Cooperation Agency are cooperating to support Japanese SMEs seeking investment opportunities abroad.
"This project is aimed at promoting SMEs to expand businesses and investment in the overseas market, including Thailand," Mrs Nangnoi said. "This is part of Japan's policy to support Japanese SMEs seeking opportunities abroad."
Some 197 companies from Saitama prefecture -- home to medical device, electronics and auto industries -- have begun investing in Thailand, she said.
From Yamanashi prefecture, famous for its food and drinks, 11 companies have invested in Thailand.
Six companies with 21 factories from Akita prefecture, which is the centre of car manufacturing and electronics, have also come to Thailand since late last year.
Totori prefecture, which is a hub for auto parts and electronics, had 19 companies with 22 factories in Thailand.
Shimane prefecture, a base for food, machinery and electronics components businesses, had invested in 21 companies with factories in Thailand.
Over 280 SMEs from Aichi prefecture, mostly in the auto, aviation and parts industries, have started construction of 416 factories in the country, Mrs Nangnoi said.
Some 58 companies from Toyoma prefecture, a medicine and machinery hub, are expected to build 31 factories in Thailand.
Meanwhile, investors in the garment, chemical and renewable energy sectors from Kyoto prefecture are about to start investing in Thailand this year, she said.
Mrs Nangnoi declined to give details about the exact investment value of Japanese SMEs investing in Thailand. The amount is believed in the billions of baht.
According to data from the Board of Investment, Japan remains the biggest foreign investor in Thailand in terms of investment value.