17-1-2024 (BANGKOK) Top executives from prominent ASEAN conglomerates, Saha Group and FPT, have issued a stark warning to Japanese companies operating in Southeast Asia. They emphasize the urgency for these firms to abandon slow decision-making processes and outdated technology, or risk losing opportunities in the region to their nimble Chinese and South Korean competitors.
Boonsithi Chokwatana, Chairman of Saha Group, Thailand’s leading consumer products conglomerate, expressed concern about the sluggish decision-making within Japanese companies. Boonsithi, renowned as the “king of consumer goods” in Thailand, has extensive joint ventures with around 80 Japanese companies, including Lion, Wacoal, Secom, and Lawson. While acknowledging Japanese firms’ emphasis on building trust through long-term relationships, Boonsithi urged them to evolve their business practices to match the fast-paced world of innovation.
Boonsithi highlighted the automotive industry as an example, noting that Japanese players like Toyota and Honda face stiff competition from Chinese counterparts, particularly in electric vehicles (EVs). He praised Chinese automaker BYD for offering competitive EVs and expressed concern about the decline of Japanese automakers in Thailand, urging them to adapt swiftly to changing market dynamics.
On a positive note, Boonsithi highlighted that businesses related to Japanese culture, such as food and housing, still maintain a competitive edge in Thailand. Cultural similarities between Japan and Thailand contribute to the acceptance of Japanese products and services in the region.
Saha Group has strengthened its ties with Japanese companies through strategic investments, including a subsidiary of Pan Pacific International Holdings (PPIH) and a joint venture with Tokyu. Boonsithi unveiled plans to set up warehouses across Thailand, enhancing Japanese retailers’ supply chains and facilitating expansion.
Meanwhile, FPT, the Vietnamese information technology giant, is accelerating its expansion in Japan. Chairman Truong Gia Binh sees Japan as a promising market, leveraging FPT’s expertise to help Japanese companies digitize operations and develop new businesses. FPT, which started as a subcontractor, has evolved into a key player in the IT sector, providing services directly to major telecom providers and manufacturers.
Truong Gia Binh highlighted Japan’s reliance on outdated computer languages and complex systems, presenting a significant business opportunity for companies like FPT. The company has about 15,000 engineers dedicated to Japan and collaborates with leading Japanese firms across various sectors, including agreements with Honda Motor and Toppan Holdings.
As Japan and ASEAN celebrate the 50th anniversary of their friendship and cooperation, the relationship between Japanese and Southeast Asian companies has undergone significant transformation.
