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Economy

Japan SMEs find prime hunting grounds in Southeast Asia

Nearly half of the JBIC's loans go to smaller businesses

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A man walks in a Bangkok business district. Many of the Japan Bank for International Cooperation's corporate borrowers are investing in Thailand.   © Reuters

TOKYO -- It is not only Japan's giant corporations that are looking to expand overseas. For the past three fiscal years, more than 40% of loan commitments provided by the Japan Bank for International Cooperation were directed to mid-tier, small and midsize enterprises to help them get started in other countries.

With their domestic market perennially in the doldrums, many Japanese businesses are now seeking better opportunities abroad, especially in the growing economies of Southeast Asia -- now viewed as high-potential markets as opposed to production locations.

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