Financial assistance for 23 tech-related cooperation projects between Japanese and Southeast Asian companies will be provided by the central government, The Yomiuri Shimbun learned on Tuesday.
The projects aim to address challenges such as agricultural productivity and medical quality faced by countries in Southeast Asia by utilising the private sector.
The move is also aimed at countering China’s rise in the tech sector in Southeast Asia.
The government will announce the plan before Prime Minister Yoshihide Suga visits Southeast Asia in his first diplomatic trip as prime minister later this month.
Japan will provide a total of 500 million yen ($4.7 million) for the 23 projects in nine of the 10 ASEAN member states, including Cambodia and Thailand.
For example, Sojitz Corp, a major trading company, will provide pig farmers in Vietnam with an IT-based production management system. They can adjust the amount of feed and manage health conditions by analysing the movement of pigs with a camera to improve product quality.
In Cambodia, Toyota Tsusho Corp, another major trading company, will team up with Grab, a company that operates car-hailing services throughout Southeast Asia, offering services combining sightseeing and various modes of transportation, including buses and taxis.
In Thailand, Hitachi Ltd will use artificial intelligence to analyse medical data at major local hospitals to improve medical services, such as personalised treatment and medication.
In Indonesia, Japanese and local auto parts makers will work together to enhance production efficiency.
Japan’s move comes amid China’s growing presence in the digital sector in Southeast Asia. Video sharing app TikTok and other Chinese tech services are being widely used in each country in the region.
Japan aims to deepen cooperation with Southeast Asian countries in IT-based businesses before Chinese companies become more influential there.
Japan and ASEAN agreed at a meeting of economic ministers this spring to cooperate on putting digital services into practical use in order to enhance the sustainability of economic activities in the face of the spread of the novel coronavirus infection. Japan already has similar assistance projects ongoing in India.
The government hopes the assistance will help Japanese companies expand into new businesses in Southeast Asia and stimulate the creation of more digital services in Japan at the same time.
THE YOMIURI SHIMBUN (JAPAN)/ASIA NEWS NETWORK
