Tanaka: Thailand a top market in Asean

Panasonic Corporation, a Japanese multinational electronics group, will enter Thailand's 350-billion-baht property market through a joint venture with a local developer to build housing projects, shopping centres and hospitals in the next two years.

Kazuhiko Tanaka, managing director of PanaHome Asia Pacific Pte, said the company is negotiating with a few property companies in Thailand and will chose one as its business partner to jointly penetrate the Thai property market.

A new joint venture will be formed, with Panasonic holding a 49% stake.

The Japanese company will select its business partner next year and expects to build the first housing project by 2018, which will target middle- to high-income earners. Houses will be priced from 4 million baht per unit.

Thailand is the third country in Asia where the company has expanded its property business, after Taiwan in 2008 and later Malaysia. Operations in both countries are run as joint ventures. Currently, it has 10 property development projects in Taiwan, primarily condominiums. It has also built four housing projects in Malaysia.

"We're interested in expanding into the property business in Thailand because the country is among the top markets in Asean. The real estate sector is a key industry here and Thai consumers are both familiar with and accept Japanese innovations and designs," said Mr Tanaka.

Panasonic has many strengths in the industry, including 50 years of experience. The company also has five solutions to provide to the property market, including energy, security and smart homes.

Hidekazu Ito, managing director of Panasonic Siew Sales (Thailand) Co, the distributor of Panasonic home appliances here, said the company is promoting its eco-solution products at the 35th House and Condo 2016 fair, which runs until this Sunday at Queen Sirikit National Convention Center.

Currently, there are 19 companies operating under the Panasonic banner in Thailand.

Of the total, four are sales companies: Panasonic Siew Sales (Thailand) Co, Panasonic A.P. Sales (Thailand) Co, Panasonic Industrial Device Sales (Thailand) and Panasonic Eco Solutions Sales (Thailand) Co. Their combined sales were 36 billion baht for the 2015 fiscal year ending March 31, 2016.

The group expects sales of 37 billion baht from these four sales units this fiscal year.