Japanese medium- and small-sized manufacturers are ramping up operations markets outside Japan amid dramatic growth in newly emerging countries. The Japanese government, meanwhile, has laid out a new industrial structure vision and growth strategy prioritizing growth in foreign markets.
The Techno Park business is the Toyota Tsusho Group’s solution to meeting both private- and public-sector demand with unrivaled know-how and networks. As the Techno Park business expands around the world, we interviewed colleagues on the frontline.
Bolstering the Supply Chain
Honing Our Edge in New Business and Customer Development
Supporting Manufacturers as a Trading and Investment Company
The Techno Park business’s mission is to provide solutions to the many challenges faced by medium- and small-sized businesses when the expand outside Japan. Their issues run the gamut, from how to distribute limited management resources, gather information on local markets, and understand local business and social practices, to overseas labor and tax issues, local legal compliance, and ways of solving wrongful acts related to their business. Many companies see these as barriers to foreign expansion even when they have competitive technologies. And the perceived risks are even greater when dealing with emerging countries.
As the Toyota Group’s trading representatives, our motto in the Techno Park business is, “You manufacture, we do others!” The ability of the Techno Park business to handle a range of business issues enables customers to focus on what they know best, namely manufacturing.
In addition to helping launch local companies and production lines to match local requirements, we offer administrative services and infrastructure support after manufacturing begins. Other companies can offer rental factories. The Toyota Tsusho Group’s Techno Park business goes well beyond just land and facilities leasing by identifying the challenges facing customers and providing specific, effective solutions for each of them.
Building Customer Bases and Businesses
Toyota Tsusho Corporation launched its first Techno Park in Bangalore, India in 1998 just as Toyota Motor Corporation was accelerating manufacturing operations outside Japan. Today, Our Business Development Department Techno Park Management group manages seven Techno Parks in four countries, mostly in Asia. We would like to bolster the supply chain honing our edge in the development of new customers and businesses for the entire Toyota Tsusho Group in such areas as logistics and parts assembly, along with information solutions.
In 2016, our latest Techno Park opened in Poi Pet, Cambodia in support of the “Thai-Plus-One” policy to expand manufacturing activities outward across Asia from bases in Thailand.
As the Japanese public and private sectors look abroad for new growth, we are striving to contribute to new customer and business creation for the entire Toyota Tsusho Group by leveraging and promoting the Group’s vast network and business know-how.
As one example, in April 2017, we formed a collaborative agreement with Aichi Prefecture to act as a consultant for prefectural companies interested in expanding outside Japan. In our capacity as consultant, we will provide companies with information on local business environments and the establishment of sites abroad.
Backing “Thai Plus One” with Broad Services
Located in Poi Pet City, Cambodia near the Thai border, Techno Park Poi Pet Pvt. Co., Ltd. began operations in September 2016.
|Company name||Techno Park Poi Pet Pvt. Co., Ltd.|
|Location||Poi Pet City, Banteay Meanchey Province, Cambodia (in the SANCO Special Economic Zone POI PET)|
|Establishment||May 2015Capital:US$3.01 million (100% TTC owned)|
|Business description||Leasing of land and factories to companies entering local market; agency services and support for general affairs, accounting, human resources, personnel dispatch, and other administrative functions; customs clearance for Techno Park tenants|
Poi Pet: Great location and labor pool with burgeoning potential and energy
Cambodia held its first democratic elections in 1993, putting behind it the stigma of the Pol Pot era. For the past decade, foreign investment has flowed into the country, and today it stands on the threshold of a new age of industrialization. Designated a special economic zone, the city of Poi Pet is making rapid strides towards industrialization. Here, TTC has established a Techno Park near the Thai border. Tenant companies were begin full-scale manufacturing operations from 2017.
It was three years ago that TTC first eyed Poi Pet as a potential site. Located only 230 km from Bangkok, about four hours by car, the city is becoming a manufacturing hub in the “Thai-Plus-One” strategy to extend operations from Thailand to neighboring regions. Stores and apartment buildings are popping up amid the manufacturing boom. There is also a plan to establish railways connections between Bangkok in Thailand, Poi Pet and Phnom Penh in Cambodia. The city and people are brimming with hope and energy.
Broadening services with staff training and dispatch
In addition to the Techno Park services traditionally provided, we’ve broadened the menu in Poi Pet with new staff training and dispatch services. For companies in the Techno Park, we began offering general staff dispatch six months ago. The customers have been very satisfied, telling us the staff are performing even better than they expected.
The Cambodian population is still heavily agrarian. Part of our role is to mold local labor into productive staff providing high added value for manufacturing.
Our Techno Park itself must also urgently develop local staff and strengthen its organization to ensure we can support a growing number of companies with a broad array of superior services. We’ve already had success training local staff to manage certain business tasks like customs clearance procedures between Thailand and Cambodia. This is an area we can develop into a core competency. In the future, we also plan to expand the logistics business for trade routes in cooperation with TTC’s Techno Park in Thailand, while also building our own manufacturing lines to produce and process goods for other companies. We strive to grow the Cambodian Techno Park into a great success.
Global Techno Park Business
Techno Parks offer a full suite of business support services enabling manufacturers to focus solely on production.
These services range from rental factories to infrastructure and administration support services after manufacturing operations begin.
Assisting manufacturers (small- and medium-sized companies) expand abroad.