Japanese investments started to flood into Thailand in 1985, when a sharp appreciation of the yen prompted export-oriented companies to shift production abroad in order to take advantage of weaker currencies, such as the Thai baht. The south-east Asian country has, for the most part, proven to be a lucrative market for Japan Inc.
Japanese firms account for more than 60% of all the firms receiving tax privileges under the government’s Board of Investment of Thailand, and they contribute about half of the country’s manufacturing output. There are some 1600 registered Japanese companies in Thailand, together with about 43,000 Japanese expatriates, making it the second largest Japanese overseas community after China.
