Osaka keen on high-tech options

       Japanese investment in Thailand is set to surge - with life-sciences and hightech companies, in particular, seeking to expand their presence - from the beginning of next year as the two economies recover from recession.
       Both Japan and Thailand will be more stable economically and politically next year, said representatives of the Osaka Chamber of Commerce and Industry (OCCI) during a three-day visit to Bangkok.
       Japan will hold an election by the end of this month, while the political uncertainties that have plagued investment in Thailand for years are expected to ease during the rest of the year, OCCI vice-chairman Makoto Kato said yesterday.
       "The Japanese economy is coming back from recession and companies will be ready to aggressively invest abroad from the beginning of next year," said Mr Kato, who is accompanying governor Toru Hashimoto and executives of 14 Osaka-based firms as they explore business opportunities in Thailand.
       "By then, I think the Thai economy will be also on the recovery path while political issues will see some improvement."
       Osaka, with 8.8 million residents, contributes 8% of the Japanese economy with a gross domestic product of $333.5 billion. The city is home to the whitegoods giants Sharp and Panasonic and to other leading Japanese brands such as Daihatsu, Kubota, Suntory, Takeda and Mizuno.
       "The new wave of Japanese investment in Thailand will be more in high-tech and value-added industries to avoid rising competition from lower-wage countries.Osaka itself has a strong expertise in life sciences, biotechnology and alternative energies and we are keen to invest here,"said Mr Kato.
       Technologies for hybrid vehicles and eco-cars, as well as for electric vehicles,are elements Osaka could deliver to Thai partners, he added.
       With 258 of its firms present in Thailand, Osaka is second only to Tokyo for its businesses' investment in Thailand.Japan is also Thailand's largest foreign investor with 130 projects worth more than 30 billion baht approved by the Board of Investment in the first seven months of this year.
       Thailand Trade Representative Vachara Phanchet said the time is right for Thai investors to invest in Osaka by forming joint ventures with Japanese partners.
       "The Japanese economy is bouncing back from the crisis but is not yet as strong as in the past. This provides a good chance for Thai companies to have greater access for investing there," he said.
       Japanese financial institutions, including the Japan Bank for International Co-operation and the Development Bank of Japan, have recently agreed to provide financial support to foreign small and medium-sized companies investing in the country, added Mr Vachara.
       Osaka is in the mid-western Kansai region, where bilateral trade with Thailand has increased since the launch of the Japan-Thailand Economic Partnership Agreement in November 2007. Exports from Kansai to Thailand stayed at about $6 billion with imports totalling $3.6 billion last year.