Why Japanese Startups Are Seeking Business Partners in Thailand And Southeast Asia

Have you ever wondered what makes Thai businesses so appealing that Japanese Startups are paying close attention and continuously seeking partnerships in the country? We got the answers from a representative of the Japan External Trade Organization (JETRO), a government agency that supports investment, cooperation, and the expansion of Japanese businesses in many countries, including Thailand.

Mr. Eisuke Matsuura, Director of the SME & Startup Promotion Dept. at JETRO, states that JETRO is focused on supporting and promoting Japanese startups in entering overseas markets. Mr. Matsuura oversees the operations of JETRO Bangkok, specifically supporting Japanese startups in accessing local markets and businesses in Thailand.

With approximately 6,000 Japanese companies already operating with branches in Thailand, Japan has a significant existing customer base in the country. This has sparked interest among Japanese startups, encouraging them to explore the Thai market and seek opportunities and technologies, particularly in Software as a Service (SaaS).

Furthermore, Japanese startups specializing in Deep Tech, Green Tech, and Climate Tech have begun conducting market research in Thailand. They have observed a clear interest from Thai corporations looking to integrate these advanced technologies into their business operations.

Moreover, Thailand serves as a gateway to Southeast Asia, hosting regional activities and events that link the Thai market with the broader Southeast Asian market. This allows Japanese startups to enter and engage with the region, often facilitated by government agencies like JETRO or through regional conferences such as the Techsauce Global Summit.

From Mr. Matsuura's perspective, many Japanese startups have successfully expanded into Thailand and secured business partners through JETRO. He cites the example of Zeroboard, a Japanese Climate Tech startup. JETRO supported their search for a local partner in Thailand, which ultimately led to a partnership with Innopower, a Thai clean energy innovation company.

"Zeroboard is one of Japan's well-known startups, and JETRO brought them to exhibit at the Techsauce Global Summit for the first time in 2023," Mr. Matsuura explains. "Back then, our support wasn't just for an exhibition booth; we also facilitated business matching. Using Techsauce's matching platform, we helped the startup secure about 10 meetings with potential new partners."

Mr. Matsuura elaborates on how Innopower and Zeroboard's needs were a perfect match: "At the time, Innopower was searching for new technologies related to Green Tech, Climate Tech, or solutions for visualizing greenhouse gas (GHG) emissions. Simultaneously, Zeroboard, a Climate Tech startup with a GHG reporting system, was looking for a local partner in Thailand. When Innopower realized Zeroboard could support their business activities, they formed a partnership."

The deal was successful because it precisely met the needs of both parties. Innopower wanted to serve its customers under its own brand, while Zeroboard sought a partner to drive growth rather than focusing on building its own brand recognition. As a result, Innopower uses Zeroboard's technology as the backbone for its greenhouse gas calculation and reporting platform. This helps clients achieve their carbon neutrality goals through a "White Label" business model, an arrangement that allows one company (Innopower) to market and sell a technology produced by another (Zeroboard) under its own brand.

Beyond Green Tech and Climate Tech, Mr. Matsuura notes that Thai organizations are also highly interested in AI technology. He explains that during visits to large corporations, he consistently hears that they are seeking AI-related technologies to improve internal workflows. These companies are also looking for AI solutions to support new business ventures and want to leverage AI and Big Data to enhance marketing and sales.

Mr. Matsuura adds that in the past, Japanese startups struggled to access local Thai partners on their own. However, working through JETRO and using platforms like Techsauce as a gateway has made it much easier for them to connect with local businesses. This accessibility has also made it simpler to attract large corporations for close discussions and meetings.

“Bringing Japanese companies to the Techsauce Global Summit has proven it to be a key gateway for finding partners, facilitating business matching, and increasing opportunities for our startups to enter the local market. Moreover, I see a very positive trend for business opportunities in Thailand, for both startups and investors. Therefore, I believe the next Techsauce Global Summit will successfully connect new, high-potential startups with partners in Thailand and across Southeast Asia,” Mr. Matsuura concludes, acknowledging Techsauce as a key partner supporting the growth of both Japanese and Thai companies.