EXIM Thailand Synergizes Thailand Team and Allies in Japan
EXIM Thailand Synergizes Thailand Team and Allies in Japan to Promote Manufacturing Technology Transfer and BCG Economy in Asia-Pacific
Mr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that EXIM Thailand led by Dr. Pasu Loharjun, EXIM Thailand Chairman, together with Board members, and Mr. Piyabutr Cholvijarn, Chairman of Performance Agreement Sub-Committee (SubPAC) for State-owned Financial Institutions, as well as executives of Fiscal Policy Office (FPO), State Enterprise Policy Office (SEPO) and Institute of Research and Development for Public Enterprises (IRDP), which are organizations supporting EXIM Thailand’s missions in promotion of international trade and investment, met to discuss and expand relationship with allies from public and private sectors in Japan during December 8-9, 2022. The collaborative move has aimed to boost fresh opportunities conducive to Thai business sectors’ expansion of trade and investment with Japan in Asian Region. These agencies comprise Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), TradeWaltz, MUFG Bank, Ltd., and Japan International Cooperation Agency (JICA).
Mr. Rak said that Japan is Thailand’s strategic partner ranking No. 3 in the world by economic size, following the US and China, and Thailand’s largest foreign investor mostly in the manufacturing sector, e.g. machinery, automobile, steel and steel products, and electrical and electronic appliances. Moreover, Japan ranks among top 10 destination countries where Thai entrepreneurs have made investment in such businesses as hotel, foods, garment, spa, telecommunication, construction and renewable energy. It also ranks No. 2, following China, in the list of key trade counterparts of Thailand, approximately 80% of Japan’s imports from Thailand are industrial goods while Thailand has imported capital goods and raw materials from Japan. However, for the first 9 months of 2022, Thai exports to Japan grew by only 0.9% amid the economic slowdown. EXIM Thailand’s main mission is to synergize its Thai alliances from both public and private sectors with Thailand Team to promote and uplift Thailand’s competitive advantage on the global stage. The Bank has envisaged Japan as the master of development of production technologies and innovations, which could be transferred to Thai industries, particularly those in linkage with Bio-Circular-Green (BCG) economy in line with Thai government policy.
On this occasion, EXIM Thailand entered into Memoranda of Understanding with Japan’s financial institutions as below:
- Memorandum of Understanding (MOU) between EXIM Thailand and JBIC on Cooperation in Promotion and Support of Trade and Investment between Thailand and Japan
Mr. Rak Vorrakitpokatorn, EXIM Thailand President, and Mr. Amakawa Kazuhiko, JBIC Deputy Governor, signed an MOU on Cooperation in Promotion and Support of Trade and Investment between Thailand and Japan, both financially and non-financially, such as exchange of knowledge base to enhance expansion of Thai-Japanese trade and investment and sustainable development at the Regional and Greater Mekong Subregional levels in linkage with development of clean energy in the BCG economy model leveraging on Thailand’s strengths in respect of biological and cultural diversity, which is in line with the sufficiency economy philosophy and the sustainable development goals (SDGs). The MOU signing ceremony was witnessed by Mr. Singtong Lapisatepun, Thai Ambassador to Japan, at JBIC Headquarters, Tokyo, Japan.
- Addendum between EXIM Thailand and NEXI
Mr. Rak Vorrakitpokatorn, EXIM Thailand President, and Mr. Atsuo Kuroda, NEXI Chairman and CEO, inked an Addendum to the MOU executed by the two institutions in 2020, in the presence of Dr. Pasu Loharjun, EXIM Thailand Chairman, and executives of alliance agencies as witnesses. EXIM Thailand and NEXI will exchange information and jointly carry out activities to enhance Thai and Japanese entrepreneurs’ knowledge and understanding of risk management tools for international trade and investment so that they would be able to start up or expand international businesses with confidence, particularly in high-potential new frontiers like the CLMV (Cambodia, Lao PDR, Myanmar and Vietnam) and the areas in the Eastern Economic Corridor (EEC) of Thailand. In 2023, EXIM Thailand will host the Asia-Pacific Regional Cooperation Group CEO Meeting of export credit insurance agencies. The meeting will serve as a forum for member organizations’ sharing of information and experiences in development and expansion of export and investment insurance services for business sectors in various countries.
In addition, EXIM Thailand met and discussed relevant issues with alliance agencies from both public and private sectors in Japan as follows:
- Ambassador, Royal Thai Embassy in Tokyo
Mr. Pasu Loharjun, EXIM Thailand Chairman, led an executive team to pay a courtesy visit to Mr. Singtong Lapisatepun, Thai Ambassador to Japan, at the Royal Thai Embassy in Tokyo to present and discuss EXIM Thailand’s strategies under its new role as Thailand Development Bank as well as guidelines for promotion of Thai-Japanese trade and investment under such international trade agreements as Japan-Thailand Economic Partnership Agreement (JTEPA), ASEAN-Japan Comprehensive Economic Partnership (AJCEP), Regional Comprehensive Economic Partnership Agreement (RCEP), and Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS).
- TradeWaltz, developer of digital platform for international trade
Mr. Pasu Loharjun, EXIM Thailand Chairman, led his team to meet with Mr. Satoru Someya, Managing Director of TradeWaltz Inc., and Mr. Kobsak Duangdee, Secretary General of Thai Bankers’ Association (TBA), to discuss guidelines for development and connectivity of information on international trade of Thailand and Japan in order to equip entrepreneurs with supporting data for their decision making, facilitate their access to trade counterparts, and cut down their costs and complexity in document storage. TradeWaltz is currently in the process of connecting the system with central trade platforms of various countries including Thailand. This aims to assist business sectors in prompt access to sources of goods or raw materials.
- JICA
Mr. Pasu Loharjun, EXIM Thailand Chairman, led his team to meet with Mr. Keiichiro Nakazawa, JICA Senior Vice President in charge of Southeast Asia and Pacific Department, South Asia Department, and Private Sector Partnership and Finance Department at JICA to discuss guidelines for promotion of Thai-Japanese trade and investment, as well as investment under ACMECS especially for infrastructure and BCG projects in particular.
- MUFG Bank, Ltd. and Bank of Ayudhya Plc.
Mr. Pasu Loharjun, EXIM Thailand Chairman, together with EXIM Thailand Board of Directors and Dr. Rak Vorrakitpokatorn, EXIM Thailand President, led the team to meet with executives of MUFG Bank, Ltd. and Mr. Prakob Phiencharoen, Executive Committee Member of Bank of Ayudhya Plc., a member company of MUFG Group, to discuss cooperation framework and share business operation perspectives under the sustainable development principles. MUFG Bank, Ltd. is Japan’s largest financial institution and major business alliance and counterpart of EXIM Thailand. It is expected to support EXIM Thailand’s role as Thailand Development Bank that links economic dimension with social and environmental dimensions in alignment with the sustainable development goal of EXIM Thailand.
