High-Tech Future
As we cross the threshold into 2026, the economic synergy between Japan and Thailand is entering a sophisticated new chapter. Far from the traditional “factory-floor” relationship of decades past, the partnership is evolving into a high-tech alliance fueled by record-breaking investment applications and a renewed sense of business confidence.
Supporting this charge is Hiroyasu Kondo, President of the Japanese Chamber of Commerce (JCC) in Bangkok. In this exclusive Q&A with Bridges Magazine, Mr. Kondo discusses the primary drivers behind the recent rebound in business sentiment, the strategic pivot toward “New S-Curve” industries like electronics and digital infrastructure, and the enduring “heart-to-heart” connection that remains the bedrock of Thai-Japanese relations as we approach the 140th anniversary of diplomatic ties in 2027.
Bridges: As you lead the JCC Bangkok into 2026, the latest surveys show a significant recovery in business confidence (DI) among Japanese firms. What do you believe are the primary drivers of this renewed optimism, and how is the JCC supporting this new wave of capital injection into the Thai market?
Hiroyasu Kondo: Various factors are intricately intertwined in the fluctuations of the DI. Although there are concerns about intensifying price competition, we believe that factors such as the projected increase in demand—including the acquisition of new projects across a wide range of industries—during the first half of 2026 are contributing to the recovery of the DI. On the other hand, the survey was conducted in December last year, and since then the business environment has changed significantly. Geopolitical risks, especially the situation in the Middle East, as well as the policy direction under the new administration, may affect energy prices, supply chains, and investor sentiment, so it will be necessary to continue monitoring these developments closely. Furthermore, the JCC continues to engage in dialogue with various Thai government agencies, including the BOI, regarding business challenges facing Japanese companies in Thailand, and is working to create an environment that is even more conducive to investment. Through these efforts, we aim to support sustainable business expansion and encourage a new wave of capital injection into the Thai market.
We are witnessing an incredible 119 billion baht in recent Japanese investment applications, particularly in electronics, chemicals, and digital infrastructure. How do these “New S-Curve” industries reflect the evolving role of Thailand as a sophisticated, high-tech partner for Japan’s global supply chain?
Traditionally, Thailand has served as a manufacturing hub for automobiles and home appliances, playing a key role in a reliable supply chain. However, I understand that Japanese companies are now beginning to view Thailand as a critical hub even in high-value-added sectors such as advanced electronic components. I believe this shift is driven not only by the need to strengthen supply chains in light of geopolitical risks but also by the Thai government’s policies to promote industrial upgrading, human resource development, and digitalization.
“I am convinced that the relationship between Japan and Thailand goes beyond mere investment and trade; it has been sustained by the ‘heart-to-heart’ bonds forged by the people of both nations.”
Hiroyasu Kondo, President of the Japanese Chamber of Commerce (JCC) in Bangkok
With discussions underway to modernize the Thailand-Japan Economic Partnership Agreement (JTEPA), how do you envision this updated framework further opening doors for Japanese SMEs and startups to find a “second home” in Thailand?
To date, the JTEPA has primarily focused on promoting and facilitating trade and investment.
I am not sure exactly what “modernize” refers to or what discussions are currently taking place between the governments, but if the business environment improves, entering the Thai market could become an attractive option for SMEs and startups.
As we look toward the 140th anniversary of Thai-Japanese diplomatic relations in 2027, what is your message to the next generation of business leaders? How can our two nations continue to innovate together to build a sustainable, “Heart-to-Heart” economic future in ASEAN?
I am convinced that the relationship between Japan and Thailand goes beyond mere investment and trade; it has been sustained by the “heart-to-heart” bonds forged by the people of both nations. Whenever I engage in dialogue with key figures in the Thai government and business community, they almost invariably express their gratitude for the fact that Japanese companies have invested in Thailand for many years, creating jobs, nurturing talent, and building supply chains rooted in local communities. Since Japan and Thailand already share a strong bond of trust that can only be forged over time, I believe it is crucial to build upon this foundation and continue our steady efforts in Thailand to create new businesses that address social challenges such as the declining birthrate and aging population.
