Thailand and Japan: Shaping ASEAN's economic future together!

Thailand and Japan: Shaping ASEAN's economic future together!

Economic relations between Thailand and Japan are currently at a crucial point. An exciting discussion entitled “Thailand: Shaping ASEAN’s Next Frontier” was held as part of The Standard Economic Forum 2025, organized by Nikkei Asia and The Standard. The exchange aimed to reflect the perspectives of leaders from both countries and explore new economic horizons in the ASEAN region. The event was attended by notable speakers including Vikrom Kromadit of Amata Corporation, Koji Iwanami, CEO of Honda Thailand, and Bunsei Okubo of Bank of Ayudhya (MUFG). Toyoaki Fujiwara from Nikkei moderated the event.

Vikrom Kromadit emphasized in his remarks that Thailand's economic growth depends heavily on the quality of governance. He is optimistic and believes that the country's gross domestic product (GDP) could grow by 5-6 percent if competent leadership is in place. At this point he referred to the example of Indonesia under President Joko Widodo, which shows how effective governance delivers positive results.

Thailand's location advantages and shaping the future

Thailand benefits from its geographical location in Southeast Asia, surrounded by countries such as Myanmar, Laos, Cambodia and Malaysia. The good international connections and a continuously developed infrastructure give the country advantages that should be exploited. Vikrom proposes making Thailand similar to Dubai or Singapore by reducing bureaucratic hurdles and encouraging investment.

MUFG's Bunsei Okubo added to the discussion by pointing out that today's investments are increasingly flowing not just into large factories, but also into new innovations and business ecosystems. Thailand should therefore pursue a so-called “two-pronged strategy” to both strengthen traditional industries and promote new sectors such as data centers, semiconductors and renewable energy. However, developments in modern infrastructure, workforce qualifications and clear investment guidelines are essential for this.

The Role of Honda and the Future of the Automotive Industry

Koji Iwanami from Honda Thailand emphasized Thailand's reliability as a partner and the high efficiency of the Thai workforce. Honda is pursuing a “two-track strategy” for the development of hybrid and electric vehicles. A key part of this strategy is investing in workforce training to prepare them for the future challenges of the automotive industry.

Finally, the discussion also addressed the idea of ​​trilateral cooperation between Japan, China and Thailand in order to make the best possible use of the strengths of each country. Crucial elements for Thailand's future economic growth are clear government policies and a welcoming environment for investors.

Thailand's economic situation in context

Thailand, officially known as the Kingdom of Thailand, has a population of nearly 66 million people and covers an area of ​​approximately 513,115 km². Geographically central in mainland Southeast Asia, the country offers a variety of ecosystems, ranging from rolling hills in the north to fertile rice fields in the central plains. Thai culture is strongly influenced by Theravada Buddhism and shapes the country's national identity. In addition, Thailand is recognized as a developing country and plays an important geopolitical role in the region.

With a high urbanization rate, with approximately 54.3% of the population living in urban areas, Bangkok is becoming the country's dynamic economic hub. Since the 1960s, Thailand has developed from an agricultural country to one of the largest economies in the region, with the main economic sectors being industry, agriculture and tourism.

The forecasts point to further growth in the coming years, provided the course is set correctly. Thailand has the potential to emerge as an economic leader in the ASEAN region and the current discussions are the first step in this direction.