Thread: Japan slows down investment in Thailand

Japan slows down investment in Thailand
Monday November 17, 2008 14:27

Thai Chamber of Commerce President Pramon Sutivong said Japan is slowing down its investment in Thailand because of political issues and differences in conditions proposed by each country, but expect Japanese investor confidence to soon return.

Mr. Pramon said progress under the Japan-Thailand Economic Partnership Agreement (JTEPA) is obstructed by the difference in proposed conditions for Thai exports to Japan, thus more efforts to foster joint understanding between the two sides must be made. He admitted the current political problems had affected investor's confidence, but said he believe Japanese investors would come to understand Thailand's situation. He added that the government needed to demonstrate clarity in its part in order to foster uninterrupted investment.

Japan-Thailand Economic and Trade Committee Chairman Uichiro Niwa believes Thai economic fundamentals remain strong, and said Japan would continue to monitor Thailand's situation in order to make good investment decisions in the country. However he noted that Japan's economy is expected to expand by 0 percent this year.

Thai Deputy Prime Minister for Economics, Olarn Chaipravat, said the economic decline in Japan would not result in declining numbers of workers in Thailand as most Japanese operations in the country are high-tech industries that would be adversely affected by such lay-offs. He believed these operations would instead resort to reducing work hours.

Thai Federation of Industries President Santi Vilassakdanont said Thailand's major exports to Japan are food and textile products, whose markets are expanding well in accordance with consumption demands in Japan. Mr. Santi believed Thai exports to Japan would expand by 21 percent this year.

bangkokpost.com

I am frankly astonished Japanese firms keep investing at all.

Thailand as most Japanese operations in the country are high-tech industries that would be adversely affected by such lay-offs. He believed these operations would instead resort to reducing work hours.

And so it goes. Less working hours amounts to what? Less food on the table? How many hours less per week? 2, 20? I doubt it's Thailand's political situation that turns investors off, more like a lack of politics at all, closer to feuding clans.

Jeez, you pick up your red phone to talk to the PM and you never know who's going to answer.

Originally Posted by Camel Toe

Jeez, you pick up your red phone to talk to the PM and you never know who's going to answer.

Probably someone randomnly of the PAD if the red phone is in the government house.

Originally Posted by Gaudente

I am frankly astonished Japanese firms keep investing at all.

Basically, Japan owed Thailand for being her ally during WW2.

I had read about 2 years ago, that Japan had essentially cleared much of it's social conscience backlog, with Thailand, & was looking to support other Asean emerging nations e.g. Vietnam, Laos etc.