#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Foreign Investors Angry With Thailand's Flood Response

## Mid

*Foreign Investors Angry With Thailand's Flood Response*
Kaori Enjoji
Sunday, 23 Oct 2011

*BANGKOK*  — Foreign investors in Thailand are increasingly angered by the Thai  government’s response to the floods that have ravaged many of its key  industrial zones, saying when they can resume production will depend on  how quickly the authorities can release accurate information.


_Flood waters surround an industrial complex October 20, 2011 in the neighboring provinces of Bangkok, Thailand._ 
Getty Images

“They kept telling us, it’s going to be fine,” said Hiroshi Minami, president of *Rohm Integrated Systems*  Thailand, one of the largest Japanese makers. Its factory in  Navanakorn, the nation’s oldest and largest industrial zone, has halted  production for nearly a week and the first floor is almost entirely  submerged.

“We could have taken critical equipment to the third floor and saved them. Now they are at risk of rusting away,” Minami said.

His  frustrations are shared by many of the 450 Japanese companies affected  by Thailand’s worst flooding in half a century. A factory that makes *Sony*’s [SNE          20.71                0.48          (+2.37%)               ] high-end cameras, *Honda*’s [HMC          30.55                0.88          (+2.97%)               ] main auto assembly plant, *Toshiba*’s chip factory are just a few of the companies directly affected. *

No Japanese auto maker will be able to produce this week in Thailand*.

J.P.  Morgan auto analyst Kohei Takahashi says his best case scenario for  Honda is production hold lasting three months and costing 15 billion yen  in operating profits. The supply shortage is likely to affect the rest  of the ASEAN region, he said.

The impact could be prolonged for pick-up truck makers like Toyota and *Isuzu*, analysts say, because mostly all of the parts are locally procured. In a strategic move to offset the rising cost of the *yen [JPY=X          76.33                0.17          (+0.22%)               ]*, *Nissan [NSANY          0.00                0.19          (+1.05%)               ]* decided to move production of its flagship March model to Thailand, while *Mitsubishi Motors* has announced to build its global small car in the country.

The  government, which came to power in August, has failed in attempts to  stop the waters from seeping into Bangkok as many canals lacing the  capital looked set to overflow. Volunteer workers filled sandbags all  along the Chao Phraya river, while residents north of Bangkok waded  through knee-deep water to move household items to higher ground. The  highways have turned into parking lots as driver abandoned their cars on  them to escape the flooding.

Seven  industrial parks have been evacuated, disrupting supply chains in  industries like electronic and automobile. Many companies said they had  not even been able to enter their facilities, let alone estimate the  estimate of the damage and costs to operations.

“Japan  is Thailand’s biggest investor. They’re the biggest employers here and  they have contributed to the economy tremendously,” said Seiya Sukegawa,  a senior economist at the Japan External Trade Organization. “There  will be a huge impact if they no longer feel it is right to do business  here. If the government does not help businesses recover, many SMEs  could go under.”

Japanese direct investment into Thailand has more than quadrupled in the last decade to total US$27.8 billion in 2010.

The  government says it has budgeted almost 100 billion baht for the  reconstruction, adding that he is counting on industries to recover  quickly as insurance policies kick in.

“Corporations  within the industrial estate are in fact multinational corporations and  they all had comprehensive insurance. They are very strong,” said  finance minister Thirachai Phuvanatnaranubala in an interview.

"We  won’t be able to use anything for a while," said Yasunari Kuwano,  general manager at ball bearing giant Minebea. Thailand generates half  of the company’s 270 billion yen sales to PC makers, appliance makers  and mobile phone companies. “We can’t even get in to check.”

It  is a double blow to Japanese manufacturers after the tsunami in their  home country knocked our supply chains earlier this year. Still  struggling to recover for lost business, a halt in production in one of  the world’s fastest growing economies would undermine efforts to bounce  back in the second half of the fiscal year. With risk of an economic  slowdown globally, analysts say many manufacturers may be forced to  revise down their full-year estimates when they start reporting third  quarter results over the next several weeks.

Every  day of lost production is an opportunity for rivals to take clients  way, especially in intensely competitive industries like electronics,  executives say.

“We’ll see if we can get a helicopter to airlift the inventory if some of it is useable,” Rohm’s Minami said.

cnbc.com

----------


## chitown

> The  government says it has budgeted almost 100 billion baht for the  reconstruction adding that he is counting on industries to recover  quickly as insurance policies kick in.


Their silliness costs the rest of the world  :Sad:

----------


## Calgary

> *Foreign Investors Angry With Thailand's Flood Response Kaori Enjoji Sunday, 23 Oct 2011 BANGKOK  Foreign investors in Thailand are increasingly angered by the Thai governments response to the floods that have ravaged many of its key industrial zones, saying when they can resume production will depend on how quickly the authorities can release accurate information*.


"Angered" huh.

Yeah, foreign investors are also inconvenienced by this disaster.

But also a neat way by anti-Govt. types to use others to demonize it, searching hard for them, or in their absence, just make up some stories.

I keep searching for media articles that commend the hard working Ms. Y and the successes of Govt programs in the face of this disaster.

The paucity of same is as clear an indication of agenda as any.

The imbalance is just too overt to come to any other conclusion.

----------


## VocalNeal

Wot about the workers?

----------


## DroversDog

Yes the Government has been in power for a whole 2 months and they failed to write a law banning natural disasters. Unbelievable!  :Roll Eyes (Sarcastic):

----------


## Butterfly

I am sure those foreigner investors are undercover PADites agents, nothing else, they have no right to criticize this government, since this government was elected by uneducated peasants who don't pay any tax or contribute significantly to the overall economy

----------


## The Ghost Of The Moog

Foreign investors need to look twice at Thailand, because this is a major supply chain event. The supply chain broke down in Japan after the tsunami and it caused a lot of problems.

Bottom line for foreign investors is that the waterways need to be fixed in future to minimise the chances of this not happening again, otherwise they will take their factories somewhere more secure to mitigate risk, and that will cost Thailand jobs.

Thats why there aren't many multinational factories in low-lying Bangladesh.

----------


## Bettyboo

> Originally Posted by Mid
> 
> 
> The  government says it has budgeted almost 100 billion baht for the  reconstruction adding that he is counting on industries to recover  quickly as insurance policies kick in.
> 
> 
> Their silliness costs the rest of the world


This is just falling into the trap, Chi, I think you can do better than that...

A (the) major part of this flood disaster was the releasing of water from the dams - nothing to do with this government.A major part of this flood disaster is the lack of respect for nature, the greed that concretes over canals and puts factories and international airports in flood zones taking little if any account of the potential effects, etc, - all Thais, especially the rich (army, politicians, other institutions, big business, etc) are to blame over decades.A major problem with this disaster management (sometimes the lack of) is political; the army, the dems (Bkk governor), and others (big business, pu yais, institutions, powerful individuals that control entire provinces such as Banharn, etc) are more interested in their own political future than the needs of people now. This is on all sides, it is not mainly from the government, quite the opposite.Cultural elements we cannot explain for fear of imprisonment.Protection of buildings and profits is more important to the dems and their voters than human lives. This may also be true of PT, except that their voting core are the other end of the scale...
To say that this government's silliness costs the rest of the world is just plain wrong, but it is exactly what abhisit, the army, privy council and unnamed others want to hear.

----------


## DroversDog

> I am sure those foreigner investors are undercover PADites agents, nothing else, they have no right to criticize this government, since this government was elected by uneducated peasants who don't pay any tax or contribute significantly to the overall economy


As usually Butters you have shown your own poor education. There are other forms of tax then income-tax which collect far more money for the government coffers.  ::chitown::

----------


## Sailing into trouble

> Foreign investors need to look twice at Thailand, because this is a major supply chain event. The supply chain broke down in Japan after the tsunami and it caused a lot of problems.


Get a grip!

The Multi nationals invest in Thailand cause it is cheap. This flood is a set back in profit margins. They will reinvest if they consider it in their long range profit forecasts. 

Butters

Companies invest in Thialand cause it is cheap!!!!! If they wanted to build on a protected sight they could have built in many places, around the world. But they wanted to build in a place with cheap land and cheap labour. They are not stupid they know who they are dealing with and the way to do business in Thailand. They also know the risks of building on a flood plain in a monsoon swept asian state at the mouth of a 2000lkm river that has a 50km wide plain at that point! 2 metros above sea level!!!!!!!!

They took a risk and lost some profit. As to moving their machinery. They would if they could! Blame shifting. Poor me. As some people have said the poor buggers with no jobs and no homes need our support now. The multi ants will survive!

----------


## Gerbil

> The Multi nationals invested in Thailand cause it was cheap. This flood is a set back in profit margins. They will not reinvest if they consider all the factors in their long range profit forecasts.


Fixed that.

Thailand no longer has a cheap labour force compared to the regional options, especially with the new minimum wage. With the uncertainty about how long it will be before they can even start to think about rebuilding, many corporations will be looking at alternative regional bases with more robust infrastructure and supply lines.

----------


## The Ghost Of The Moog

> Originally Posted by The_Ghost_Of_The_Moog
> 
> Foreign investors need to look twice at Thailand, because this is a major supply chain event. The supply chain broke down in Japan after the tsunami and it caused a lot of problems.
> 
> 
> Get a grip!
> 
> The Multi nationals invest in Thailand cause it is cheap. This flood is a set back in profit margins. They will reinvest if they consider it in their long range profit forecasts.


There are numerous alternative locations in Asia.

Firms' risk management will now have to consider the chances of a repetition in Thailand every rainy season. Japanese companies having experienced two supply chain disruptions in one year are the most likely to be thinking hard.

It will become clear if Thailand is going to take steps to fix the infrastructure shortfalls, or explain it as a hundred-year-flood.

----------


## Butterfly

Moog is right, corporate HQ are probably already computing the costs of the flood and what to do next in terms of strategic risk,

the problem is Thailand has a lot to offer, so that will probably save them

Vietnam is too backward, maybe Malaysia is a good alternative

----------


## Bettyboo

^ I have some Japanese friends in Bkk, several have moved to India as their companies relocated from Thailand. I think it's a significant number of companies over the last 10 years or so, but I'm no expert on the matter.

----------


## Loy Toy

I have heard through the grapevine that around 700 foreign companies are considering relocating their businesses and this flooding is the straw that broke the camels back.

The sad part of this, and when a million Thai workers lose their jobs, it will be the foreigners who will be blamed.  :Guilty:

----------


## The Ghost Of The Moog

> the problem is Thailand has a lot to offer, so that will probably save them


Thats true. It may save them. Foreign executives love coming to Thailand. 

In Lehman, anytime some deal was mooted in Thailand, executives from New York would be clamouring to come over and help out, even though we told them their assistance wasn't needed. So much money was spent on travel, hotels and hands-free restaurants in Thailand. 

I think I know why this phenomena occured but Thaivisa 'Lese Thaijeste' rules prevent me saying it.

----------


## Butterfly

> I have heard through the grapevine that around 700 foreign companies are considering relocating their businesses and this flooding is the straw that broke the camels back.


non-sense, and you could wonder how someone could come to that conclusion in statistical terms

I think the government priority is going to be to solve that "Bangkok" canal grid issue to make sure those factories stay, and forget about the silly iPad and other silly populist ideas

----------


## Lostandfound

> I have heard through the grapevine that around 700 foreign companies are considering relocating their businesses and this flooding is the straw that broke the camels back.
> 
> The sad part of this, and when a million Thai workers lose their jobs, it will be the foreigners who will be blamed.


I wouldn't be sure to put a number to it. I certainly know of one Taiwanese company who set here and would now be looking at Vietnam as an option. The attractions of investing in Thailand were diluted by the "hidden" costs of doing business "legally" and making things happen at an acceptable pace. 

They already manufacture in mainland China, yet underestimated the "other" costs of doing business and setting up by 50%. By then, of course, it was too late. Flooding and wholesale loss of machinery will prove a game changer for many comapnies.

----------


## Loy Toy

> non-sense, and you could wonder how someone could come to that conclusion in statistical terms


A fact mate whether we like to admit it or not.

Most are sick and tired of the political infighting, the new immigration laws, raising the minimum wages etc etc etc, now these floods.

In fact some feel these floods are a blessing in disguise and the catalysis to finally make the move that was planned years ago.

Most are considering either Vietnam, Malaysia and or Indonesia.

----------


## larvidchr

There is no passion in this, if LT is correct it is because of cool calculations of total production costs contra profits.

The kind of foreign company's having moved here have done so purely based on maximizing profits, there is no emotional allegiance to Thailand.

So if other places now offer cheaper labor, reasonable infrastructure, political stability, less corruption and red tape, less natural disasters etc. so that the extra profits earned quickly will outweigh the costs of moving production, they will do so in a heartbeat.

----------


## ltnt

"Multi-nationals all have insurance..."  99% of them are "self insured."  Meaning they bear all costs associated with any and all insurance type claims.  Nobody could afford to cover the losses of a Toyota, Honda, Chevron, Total, or Sony.  Not even Lloyds of London would take that bet.

----------


## Khun Custard

> Foreign investors in Thailand are increasingly angered by the Thai  government’s response to the floods


So, we lacking a political "finger in the dyke" here?




> No Japanese auto maker will be able to produce this week in Thailand.


Tough titties Mr Okimura san!!
No doubt a little short supply in the current market can be accommodated and will recover in not too distant future.   I am sure Thai production line workers will be happy to do overtime to help them with their own recovery problems?

With the recent announcement by the Yingluck government that a Tb100k subsidy is to be introduced for 1st time, new car buyers I'm sure the order books will fill fast once the insurance claim for the flood damaged 10 year old dmax are processed

We have not heard from the insurance companies as yet ... have we!!

I doubt very much if any Japanse industralist in Thailand would have knowing baught into the spin the author of this ever so mild "belt up" has published.
Never has been their style.

----------


## ltnt

Now just what were those successes?  After 2 months in office she's faced with a disaster beyond anyones imagination, but previous success, na, didn't happen.  Same as Obama, not qualified to lead a pack of rats.




> I keep searching for media articles that commend the hard working Ms. Y and the successes of Govt programs in the face of this disaster.

----------


## ltnt

....and no environmental laws or regulation of labor and benefits.  Cheap is Cheap!!!




> But they wanted to build in a place with cheap land and cheap labour.

----------


## The Ghost Of The Moog

> No doubt a little short supply in the current market can be accommodated and will recover in not too distant future.



Thats true, the supply chain can and will recover, but what these firms will be thinking about is how a repetition can be avoided next year.

The person in these companies who makes the call _'this might happen again, lets move'_ covers his bottomy parts better than some executive who says _'lets stay on, this was a one off'_

----------


## DroversDog

> I have heard through the grapevine that around 700 foreign companies are considering relocating their businesses and this flooding is the straw that broke the camels back.


Re-locate where? Natural disasters can happen everywhere.

----------


## Seekingasylum

> Yes the Government has been in power for a whole 2 months and they failed to write a law banning natural disasters. Unbelievable!


The government failed to:

1. Grasp the enormity of the problem facing them when it became apparent that the decision to release the Sirikit Dam waters etc was taken too late and, quite literally, in the wrong direction.

2. Arrive at an honest appraisal of Bangkok's vulnerability.

3. Inform the public and international interests that as long ago as one month disaster was impending and unavoidable.


As a consequence the losses which could have been mitigated will be enormous.

That is the responsibility of this government and no other. 

To consider otherwise on the grounds of some silly dogma or imagined hidden agenda is the province of the irrational but I imagine you are quite comfortable there.

----------


## Loy Toy

> Re-locate where? Natural disasters can happen everywhere.


As I mentioned in my post the floods has been the straw that broke the camels back with regards to some foreign companies.

Anyone who has lived in Thailand over the last 5 years will know that there are a number of major reasons why these companies have considered relocating and those reasons are not a result of mother nature's wrath.

This flooding inconvenience will see some companies moving their manufacturing base away from Thailand if they have not started the process already.

----------


## Seekingasylum

> Originally Posted by Loy Toy
> 
> 
> I have heard through the grapevine that around 700 foreign companies are considering relocating their businesses and this flooding is the straw that broke the camels back.
> 
> 
> Re-locate where? Natural disasters can happen everywhere.


Indeed but, typically, you omitted to include the qualification "sudden " when opining about the occurrence of natural disasters.

The inundation is neither sudden nor was it unpredictable. In fact its progress was inexorable and well defined to the point the full effect was absolutely certain. Unfortunately, instead of honesty these companies have been met with disinformation and incompetence. 

Why bother risking it again when Viet Nam, Malaysia and Indonesia are all there offering the same investment benefits without any of the cultural obfuscation so beloved of the Thai.

----------


## hazz

You would hope that these multinationals, given this and the results of the Japanese earthquake, might consider that their obsession with extremely lean just in time supply chains dependent suppliers that are niche and non-geoghraphically diverse is not necessarily as efficient as they think.

Its not the loss of the factories thats going to bother them as much as the loss of production. If they cannot put their product on the shelf they canon sell it; they are going to loose turn over and market share. that is going to seriously hurt them where they will feel it. I suspect many of these factories, particularly the better paying high tech ones will be total losses; these factories were built because at the time thailand provided best value, its only natural that these companies redo their best value calculations when rebuilding and some will move out of thailand as a result. And its one reason why its vital to protect the industrial estates and given the information they need to make their own decisions about what they need to do. This artical suggests that they are simply getting the same confused mess of communications that the rest of us are getting and I cannot blame them for being pissed off, I am.

The thai government has by its one admission suffered from flooding causing serious economic damage in 1983, 1995 and 2006; about every 10 years; the cause being inadequate drainage from central thailand to the sea. in addition to this they get what in most countries should be considered serious flooding almost every year. Yet they clearly do not have the will to actually do anything about it.

The only hope is that the democrats continue to live in denial of their major contribution to this flooding and over the next year or more continue to beat up the current government about their flood response. This might be enough to get someone to finally commit to building infrastructure to drain central thailand to the sea; if for no other reason than to be seen to be doing something. because nothing else has in the last 30 years.

----------


## Seekingasylum

The solution is not necessarily limited to draining the annual run off into the sea. This year's mistake was made in the name of irrigation - they didn't release the dam waters when they should have done because of concerns about agriculture in the forthcoming dry season. Had they constructed more subsidary reservoirs to take excessive water then the decision not to release the pressure on the major dams would not have been so calamitous.

As it is, east of Khorat the plateau will be as bone dry as it always is come next April.

----------


## hazz

^Do you have any idea of how the capacity of the dams compares to the volume of the flood waters?

----------


## Bettyboo

> 1. Grasp the enormity of the problem facing them when it became apparent that the decision to release the Sirikit Dam waters etc was taken too late and, quite literally, in the wrong direction.


I like your wording, almost suggests that PT released the dam waters; misinformation, TH would be proud... The people who held the water in the dams for months (to 130%???) then let masses of water out at/around monsoon season need to be pointed out and made to explain their actions on national tv - preferably in a live debate with an audience made up of flood victims...




> 2. Arrive at an honest appraisal of Bangkok's vulnerability.


Politics. BMA (dems...) pushing one way, the army pushing another, Banharn and his ilk pushing yet more ways (as you've highlighted in other threads), not to mention folk that we are unable to mention in the negative context of this disaster... Bkk was always gonna be fuked; unavoidable.




> 3. Inform the public and international interests that as long ago as one month disaster was impending and unavoidable.


That's what they have been doing as soon as it was made clear. The fact is, to this day/second, still NOBODY knows how this will go...




> That is the responsibility of this government and no other.


Utter insanity. A pure dem/PAD agenda here... This government made some errors (indeed, every Thai government in its history has contributed to this flood...); it has been coming and everyone has been avoiding responsibility for years/decades - worrying about profits and pu yai relationships instead...




> To consider otherwise on the grounds of some silly dogma or imagined hidden agenda is the province of the irrational but I imagine you are quite comfortable there.


Many words, says nothing... Detailing the facts that lead up to this disaster would lead to the conclusion that any administration would have failed, it was a no win situation, set into motion a long long time before Y and her team got their snouts to the table...

----------


## Seekingasylum

Well, yes, I think I do. According to references 3 of the major dams contain up to 25% of an average annual run off although spikes such as occurred this year would reduce that figure. My point is that the construction of more catchment areas or reservoirs and an infrastructure of water pipelines to the more arid areas caused by the dry season would help to ameliorate the problem of dealing with the run off.

Water management involves a mosaic of solutions.

----------


## DroversDog

> Originally Posted by DroversDog
> 
> 
> Yes the Government has been in power for a whole 2 months and they failed to write a law banning natural disasters. Unbelievable! 
> 
> 
> The government failed to:
> 
> 1. Grasp the enormity of the problem facing them when it became apparent that the decision to release the Sirikit Dam waters etc was taken too late and, quite literally, in the wrong direction.


You seem to not noticed that it is Royal Irrigation Departments job to decide this. I assume that you are talking about blaming both the Dems and PT for having CTP in charge of the Department of Agriculture. 




> 2. Arrive at an honest appraisal of Bangkok's vulnerability.


The BMA have been saying that Bangkok was safe. Most parts (Democrat electorates) of Bangkok are fine. The klongs around where I live are below normal levels.




> 3. Inform the public and international interests that as long ago as one month disaster was impending and unavoidable.


The floods have been getting plenty of press for the last 2 month. Do you only read the Bangkok articles in the news? 




> As a consequence the losses which could have been mitigated will be enormous.


Yes, but you can't blame a government that has been in for 2 months for the failure of the past governments to put in place proper infrastructure and procedures.




> That is the responsibility of this government and no other.


Yes they just have to wave the magic wand and all things will instantly be fixed. Nice try to pass the buck! 




> To consider otherwise on the grounds of some silly dogma or imagined hidden agenda is the province of the irrational but I imagine you are quite comfortable there.


You are the only one sprouting silly dogma.

----------


## DroversDog

> Had they constructed more subsidary reservoirs to take excessive water then the decision not to release the pressure on the major dams would not have been so calamitous.


And what has this got to do with a government that has only been in power for a couple of months? It takes years to build infrastructure like this, and nobody wants it in their backyard!

----------


## DroversDog

> Well, yes, I think I do. According to references 3 of the major dams contain up to 25% of an average annual run off although spikes such as occurred this year would reduce that figure. My point is that the construction of more catchment areas or reservoirs and an infrastructure of water pipelines to the more arid areas caused by the dry season would help to ameliorate the problem of dealing with the run off.
> 
> Water management involves a mosaic of solutions.


Dream on.... The sort of infrastructure you are talking about is politically impossible to get through any Thai government. It is easier to relocate Bangkok on an island 25 km south then to put dams on peoples land.

----------


## hazz

> Well, yes, I think I do. According to references 3 of the major dams contain up to 25% of an average annual run off although spikes such as occurred this year would reduce that figure. My point is that the construction of more catchment areas or reservoirs and an infrastructure of water pipelines to the more arid areas caused by the dry season would help to ameliorate the problem of dealing with the run off.
> 
> Water management involves a mosaic of solutions.


But thats the point isn't it. The irrigation dams are that irrigation. They are only part of the flood prevention mosaic in the sense that they can be used to absorb small transient flood waters. To do more than this would involve keeping them empty and compromises their use as irrigation water stores. With the full power of hindsight... that would have been a very useful thing to do from what you are saying.

the RID's plan to build diversion canals to the rivers west of bangkok to drain central thailand in to the sea, has the advantage of still working when it reaches full a capacity and don't consume the area's of land that a dam would.

----------


## Rural Surin

> ^ I have some Japanese friends in Bkk, several have moved to India as their companies relocated from Thailand. I think it's a significant number of companies over the last 10 years or so, but I'm no expert on the matter.


One really shouldn't be surprised by the growing runners by foreign businesses in Thailand.

----------


## The Ghost Of The Moog

Its amazing that Thailand got into this mess given how many experts there are in water management.

Just take Teakdoor as a cross-section. On the face of it just a bunch of old wash-outs, yet it turns out that they are super-experts in waterworks and flood management. All this time they were hiding their aquatic light under a watery bushel.

----------


## Calgary

> Now just what were those successes? After 2 months in office she's faced with a disaster beyond anyones imagination, but previous success, na, didn't happen. Same as Obama, not qualified to lead a pack of rats.
> 
> 
> 
> 
> 
> 
>  Originally Posted by Calgary
> 
> I keep searching for media articles that commend the hard working Ms. Y and the successes of Govt programs in the face of this disaster.


That is right INT....there has been not a single success....zippo....nuttin.

The media all the while has been demonizing, left, right and center.

This is definitely going down in the annals of Govtl. disaster management as the greatest  debacle of all time.

Thailand will be used in every Govt. Administrative Masters Degree program as a case study describing "_the mother of all crisis management abject failures"_ 

And if ya don't believe me, just read the domestic media, watch every TV channel following Abhi. around, and you will see for yourself.

----------


## WujouMao

> *Foreign Investors Angry With Thailand's Flood Response*
> 
> 
> They kept telling us, its going to be fine, said Hiroshi Minami, president of *Rohm Integrated Systems*  Thailand, one of the largest Japanese makers. Its factory in  Navanakorn, the nations oldest and largest industrial zone, has halted  production for nearly a week and the first floor is almost entirely  submerged.
> 
> We could have taken critical equipment to the third floor and saved them. Now they are at risk of rusting away, Minami said.


And i thought the Japanese were smart. I would of taken every precaution at rising water and would of taken it to higher ground and not of listened to the Goverment speeches.  Not hard to fiqure out that water will continue to rise and the comment "ok all is fine" basically means "we don't have a clue"

----------


## LooseBowels

Anyone who wants out can fcuck off now and don't come back in my book   :Smile:

----------


## Wally Dorian Raffles

> ^ I have some Japanese friends in Bkk, several have moved to India as their companies relocated from Thailand. I think it's a significant number of companies over the last 10 years or so, but I'm no expert on the matter.


during my time in thailand, i got to know a lot of japanese, working for large firms.

they were constantly complaining about how hard thailand made it for them to conduct business there, despite the fact that they invest so much into the country.

making the wife and kids of company employees do constant visa runs, was a common complaint.

even back then (2008) many companies were considering closing up shop, and moving to vietnam .....

----------


## Butterfly

> making the wife and kids of company employees do constant visa runs, was a common complaint.


kids overstay are free, but for not for the wife

I am surprised they don't get extension of stay based on their husband work permit

----------


## The Ghost Of The Moog

> Anyone who wants out can fcuck off now and don't come back in my book


I like this slogan. Its like _'Amazing Thailand'_ but longer.

I can visualise it on the adverts !

----------


## Marmite the Dog

> I am surprised they don't get extension of stay based on their husband work permit


So am I.

----------


## Mid

*Honda to keep Thai factory shut for 6 months- Nikkei*
(Reporting by Rie Ishiguro; Editing by Paul Tait)
Sun Oct 30, 2011

Japan's Honda Motor  Co is likely to be forced to keep its Thai factory shut for about six  months due to severe flooding, a move seen affecting 3 percent of its  annual global car output, the Nikkei business daily reported on Sunday.

 Japan's number three automaker has suspended operations at its factory in central Thailand for weeks, with no sign of a restart.

The company believes it will have to replace most of its equipment and facilities that were submerged by floodwaters, the Nikkei said, citing a company executive.

Honda is the only Japanese carmaker whose Thai factory was inundated, the paper said.

The half-year suspension would affect production of more than 100,000 vehicles, it said.

Honda  reports second-quarter earnings on Monday, with its profit forecast to  fall 61 percent, according to a Reuters survey of 13 analysts. A supply  shortage caused by a devastating March earthquake in northeast Japan has dragged on longer than it has for Honda's peers.

Its outlook has become even shakier with its Thai car factory under water.          

reuters.com

----------


## BobR

> Originally Posted by Mid
> 
> 
> *Foreign Investors Angry With Thailand's Flood Response*
> 
> 
> They kept telling us, its going to be fine, said Hiroshi Minami, president of *Rohm Integrated Systems*  Thailand, one of the largest Japanese makers. Its factory in  Navanakorn, the nations oldest and largest industrial zone, has halted  production for nearly a week and the first floor is almost entirely  submerged.
> 
> We could have taken critical equipment to the third floor and saved them. Now they are at risk of rusting away, Minami said.
> ...


One would think they either they, or their insurance carriers would have taken a proactive role and brought in their own experts to evaluate the situation.

----------


## Bangyai

> They kept telling us, its going to be fine,


Just shows how little the senior management knows about Thai ways. Anything negative is always brushed under the carpet here and a yes often means no. Perhaps if they had sent the senior Japanese executives on a cultural familiarisation program they might have had the foresight not to take the Thai officials at their word.

Having said that, its pretty fair to say that a lot of people have been caught with their pants down as nobody thought it would be this bad .

----------


## hazz

the few seriously large globals that i've worked for seem to be really into self insurance on everything. Given insurance is best suited for covering events that would be financially cripping to the company, these companies are so large I would imagine they would have a hard time finding insurance carriers that could credibly pay out under these circumstances.

As for flood planning, I suspect these companies might have put as much thought into flood risks as the rest of us. how many people who bought homes just north of inner bangkok's protection dikes were aware than their land their home was on land intended as a flood plain to protect the inner city?

----------


## Notnow

> *Foreign Investors Angry With Thailand's Flood Response*
> Kaori Enjoji
> Sunday, 23 Oct 2011
> 
> *BANGKOK*  — Foreign investors in Thailand are increasingly angered by the Thai  government’s response to the floods that have ravaged many of its key  industrial zones, saying when they can resume production will depend on  how quickly the authorities can release accurate information.
> 
> 
> _Flood waters surround an industrial complex October 20, 2011 in the neighboring provinces of Bangkok, Thailand._ 
> Getty Images
> ...


This reminds me of something; oh yes, just like the Japanese failed to stop the tsunami, and lied to their people afterward.

----------


## KAPPA

Post removed

----------


## KAPPA

> the few seriously large globals that i've worked for seem to be really into self insurance on everything. Given insurance is best suited for covering events that would be financially cripping to the company, these companies are so large I would imagine they would have a hard time finding insurance carriers that could credibly pay out under these circumstances.
> 
> As for flood planning, I suspect these companies might have put as much thought into flood risks as the rest of us. how many people who bought homes just north of inner bangkok's protection dikes were aware than their land their home was on land intended as a flood plain to protect the inner city?


 Maybe if they had checked theor building codes, they would hae seen they should have built elevated  homes only.  Maybe if laws were actually adhered to and not just used as tea money fodder, those homes would not have passed  certification.

 What a fucking zoo.

----------


## SteveCM

*Business Asia: Drying Off Thailand's Supply Chains - WSJ.com*BUSINESS ASIANOVEMBER 3, 2011*Drying Off Thailand's Supply Chains* 

*Manufacturers are not as foolish as they might appear for building factories on a flood plain.*

By JOSEPH STERNBERG


"[T]here was a sequence of tropical storms from the end of July to  early September that caused heavy rainfall in the upper basins and  especially the Nan River Basin, where excess runoff far exceeded the  capacity of the Sirikit Dam. . . . A substantial volume of water was  released into the flood plain area between Chai Nat and Ayutthaya  province. . . . In October, the peak flood flows coincided with the high  spring tide causing very high water levels in the Chao Phraya River.  [Parts] of Bangkok were flooded extensively . . . resulting in heavy  economic losses."

 That could be a description of the flooding currently engulfing parts  of Bangkok and environs. It's actually a description of flooding that  occurred in 1995, contained in a World Bank report published in 2009  about . . . how to manage water in Bangkok. (The authors were worried  about global warming causing higher sea levels.) The paragraph above  comes as part of a summary of other flooding incidents caused by a  variety of natural phenomenasome eight major ones since 1942.

 That history is worth considering as manufacturers and their  investors grapple with the consequences of the current flooding. This  has been a year for reconsidering supply-chain risks. First the Arab  Spring disrupted parts of the textile industry. Then an earthquake,  tsunami and nuclear disaster in Japan set back the auto and high-tech  electronics industries. Now many of the same companies are being hit by  Thai flooding that, mind you, was entirely predictable.

 One conclusion to jump to would be that these companies have been  sloppy in their risk management. Some Honda executives probably do feel a  bit foolish at the moment for having based their Thai production at an  industrial park to the north of Bangkok in the middle of what is now the  flooded zone; the company may be forced to delay the roll-out of at  least one new model, and the stock has taken a hit.

 Other automakers based their main assembly facilities at sites that  are not flooded. But they still made themselves dependent on components  manufactured in regions that are underwater, so they're in trouble  anyway. Surely it's a mistake that global production in automobiles or  electronicsanother supply chain with links in Thailandis allowed to  slow down due to a flood in Southeast Asia. 



_Reuters                 A submerged Honda factory, Ayutthaya province, Thailand._

Then again, such a conclusion is a bit  hasty. Here the car case is instructive. Far from exposing automakers to  unknowable and unmanageable natural-disaster risks, stretching supply  chains to Thailand may instead offer manufacturers a better, _more_ manageable risk-return balance.

 There are plenty of reasons why a smart automaker would want to rely  heavily on Thailand despite the well-known flood patterns, as a quick  chat with auto industry expert and sometime Thailand resident Michael  Dunne highlights. One, he says, is simply "world-class quality." The  workforce is skilled and still relatively cheap. Another is proximity to  a Southeast Asian market increasingly hungry for cars.

 Yet another is an enlightened regulatory approach: Thailand was much  more willing, much earlier on, to allow foreigners to dispense with  joint ventures and own 100% of their factories, as compared to Malaysia,  Indonesia and China, all of which come late and sometimes incompletely  to the liberalization game.

 And, odd as it seems to say it right now, Thailand enjoys certain  infrastructure advantages. The government has never shown the capacity  in this field that China or Singapore exhibit with their faithfully  executed five-year road, bridge, tunnel and port plans. But whenever it  becomes clear that road congestion or other failings have reached an  intolerable level, Thailand manages to panic sufficiently to do  something about itfor instance with a reasonably well-functioning  elevated expressway system around Bangkok or a new international  airport. Indonesians should be so lucky, given chronic government  inertia in the face of world-infamous Jakarta traffic jams.

 All these benefits come only at the cost of an occasional major  flood. Were automakers foolish to place so many eggs in what is at the  moment a very soggy Thai basket? It's more likely they made a calculated  risk-return decision. 

 This has implications for the country's economic recovery.  "Thailand's credibility is on the line here," one electronics  manufacturer told Bloomberg over the weekend, by which he meant the  government's ability to prevent future flooding. Bangkok has perhaps  fallen behind in constructing water-management facilities such as  canals, dams, dikes and the likealthough in fairness, it's not obvious  how effective any man-made measures would have been in the face of the  natural forces that cause such 50-year floods. Thailand's democracy can  sort out how much flood protection the public demands after balancing  fiscal costs of construction and human costs of destruction.

 But the more important issue from a business perspective is policy  credibility. Managers understand that natural disasters happen  everywhere. Supply-chain diversification locates production where the  benefits of operating in a place (labor skills and costs, tax and trade  policies, other regulatory burdens) outweigh the costs of whatever  disasters to which that area is prone. Thailand's challenge is to ensure  that risk-return scale continues to tip in its favor.


_Mr. Sternberg edits the Business Asia column.
_______

[Go to the link to view a video interview with Sternberg] 
_

----------


## SteveCM

*Despite Floods, Thai Central Banker Remains Upbeat on Recovery | Southeast Asia | English*

November 04, 2011

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Ron Corben                                         | Bangkok


                       Thailand's central bank governor says he is optimistic the country's  economy will recover in early 2012 from the floods still threatening  Bangkok.  The governor's upbeat outlook comes as government authorities  discuss multi-billion-dollar recovery and reconstruction plans.

Thailand's  most severe floods in 50 years have now claimed 437 lives, affected  more than three million households across three quarters of the  country's provinces. The estimated financial damage is already in the  billions of dollars. The waters have so far inundated almost 10,000  factories, including several industrial estates, north of the city with  loss of 660,000 jobs.

While the pace of the inundation has slowed  in Bangkok, millions of cubic meters of often fetid water is still  advancing to the financial and business districts.

Despite the  damage and ongoing concern in Bangkok, Thai central bank governor  Prasarn Trulratvorakul says economic recovery is possible if the waters  recede by early December and domestic spending is revived.

Speaking to journalists, Prasarn expects private consumption to lead the rebound in early 2012.

"We  still believe there will be recovery next year provided that the flood  situation starts to improve by early December," said Prasarn.  "We  should see Thailand staging a respectable comeback on the back of  domestic demand revival. I would like to stress again that Thailand's  fate will depend upon her success in reviving domestic demand."

The  floods have led the central bank to slash Thailand's expected annual  growth rate by half to 2.6 percent.  The World Bank expects the Thai  economy to contract in the final quarter by close to two percent.

Hard-hit factories outside Bangkok account for almost 20 percent of national industrial production.

Vikas  Kawatra, head of institutional broking at Kim Eng Securities, says  reviving the industrial sector should be a government priority.

"Broadly  speaking the priorities should be first to fix the industrial sector so  factories can start resumption of work and then comes the next step of  making sure that this doesn't repeat, doesn't happen," said Kawatra.   "It's a long term process."

Agriculture production in the  country's central plains has also been affected. The Rice Exporters  Association expects rice exports to fall because of logistical problems  in flooded areas. There are also concerns that as much as a quarter of  the rice crop could be affected.

For now, tens of thousands of people are already dependent on food and water handouts. 

Aid workers and politicians visiting flood-hit areas are met by crowds of anxious people.

This  week local businessman Somchai Pattanont traveled by boat along the  Chao Phraya River to deliver aid to monks at a temple. Somchai fears it  may take two years to recover.

"The country is in for trouble for  a long, long time, about one or two years," said Pattanont.  "Many  factories of the foreign factory [owners] are destroyed, [the floods]  destroyed many factories. So [in] one or two years everything will be  better. [But] the people upcountry, upcountry [everything] is destroyed.  No money, no food, no rice, trouble. The government will have to pay a  lot of money, a lot."

For now, Thai authorities are still focused  on the short term challenge of draining the enormous pool of water  north of Bangkok into the Gulf of Thailand.

----------


## Rocksteady

> For now, Thai authorities are still focused on the short term challenge of draining the enormous pool of water north of Bangkok into the Gulf of Thailand.


I see the japanese have given up waiting.  ABC announced that Japan are sending over trucks with high powered pumps they used after the tsunami.  The trucks, pumps and operators are due to arrive in two weeks.

----------


## koman

> "Multi-nationals all have insurance..." 99% of them are "self insured." Meaning they bear all costs associated with any and all insurance type claims. Nobody could afford to cover the losses of a Toyota, Honda, Chevron, Total, or Sony. Not even Lloyds of London would take that bet.


 
That is only partially true.  Many (most) do "self-insure" by owning and managing captive insurers who then buy catastrophe coverage through the re-insurance markets.
The cost of buying flood insurance on a flood plain would be very prohibitive  and it some cases not even doable.  It will be even more so now that the flood has actually occured....just like earthquake insurance is very expensive if you choose to locate right on top of a seismic fault;  and the terms and conditions would be stringent.   Insurers, primary or secondary do not offer coverage for events that are certain to occur.... that in fact would no longer be insurance...it could only be classified as some kind of maintenance contract...

----------


## hazz

^I believe this is what differentiate between assurance and insurance. the former is 'insurance' for things that will happen; like death

----------


## Marmite the Dog

> Originally Posted by Mid
> 
> 
>  
> They kept telling us, its going to be fine, 
> 
> 
> 
> Just shows how little the senior management knows about Thai ways. Anything negative is always brushed under the carpet here and a yes often means no. Perhaps if they had sent the senior Japanese executives on a cultural familiarisation program they might have had the foresight not to take the Thai officials at their word.


The Japanese way is almost identical to the Thai way, so they should have been more aware than most.

----------


## Mr R Sole

> Yes the Government has been in power for a whole 2 months and they failed to write a law banning natural disasters. Unbelievable!


Eh??? What are you going on about...a government is a government regardless if they have been in power for 5 bloody minutes...they are supposed to be responsible educated individuals that work for the benefit of the nation!!!! Or sorry was I dreaming....certainly in Thailand I am...  :rofl: 




> I am sure those foreigner investors are undercover PADites agents, nothing else, they have no right to criticize this government, since this government was elected by uneducated peasants who don't pay any tax or contribute significantly to the overall economy


Nice to see you back Butters!!!  :bananaman: 

I think that most of the companies should get out and give some other country a try...never know they may conduct themselves in a mature way...unlike the Thai's!!! Children 99% of them...

----------


## Rocksteady

> they are supposed to be responsible educated individuals that work for the benefit of the nation!!!!


Sadly, they are in this position to get back Toxin's confiscated ill-gotten gains and get him off the hook for his two year prison sentence.  They are responsible but only for self interest, it appears

----------


## Perota

> "Multi-nationals all have insurance..."  99% of them are "self insured."  Meaning they bear all costs associated with any and all insurance type claims.  Nobody could afford to cover the losses of a Toyota, Honda, Chevron, Total, or Sony.  Not even Lloyds of London would take that bet.


And you know that from where ?

Reinsurance - Wikipedia, the free encyclopedia

One of my uncles was in the business of insuring off shore oil rigs ...

----------


## Perota

> Thailand's central bank governor says he is optimistic the country's  economy will recover in early 2012 from the floods still threatening  Bangkok.  The governor's upbeat outlook comes as government authorities  discuss multi-billion-dollar recovery and reconstruction plans.
> 
> .......
> Speaking to journalists, Prasarn expects private consumption to lead the rebound in early 2012.
> 
> "We  still believe there will be recovery next year provided that the flood  situation starts to improve by early December," said Prasarn.  "We  should see Thailand staging a respectable comeback on the back of  domestic demand revival. I would like to stress again that Thailand's  fate will depend upon her success in reviving domestic demand."


The demand for everything will be huge !

We just bought a new washing machine last week as we expect a shortage for all electrical appliances once the water has retreated. (not for the profit as some idiots will probably wonder, but because the old one was about to break down)

Same for everything.




> This  week local businessman Somchai Pattanont traveled by boat along the  Chao Phraya River to deliver aid to monks at a temple. Somchai fears it  may take two years to recover.
> 
> "The country is in for trouble for  a long, long time, about one or two years," said Pattanont.  "Many  factories of the foreign factory [owners] are destroyed, [the floods]  destroyed many factories. So [in] one or two years everything will be  better. [But] the people upcountry, upcountry [everything] is destroyed.  No money, no food, no rice, trouble. The government will have to pay a  lot of money, a lot."


Totally ridiculous statement. For any businessman, one to two years is not a "long' long time" but very short term actually.

For the people upcountry, they will do what they have always done. They will come to Bangkok where the demand for workers for reconstruction will largely exceeds supply and then send the money back home where people will buy new pick up truck and open new convenience stores.

We are in for a long, long, period of prosperity, at least one or two years  :Smile:

----------


## Mr R Sole

Wonder if there will be any structual checks on building or anything to be frank...Because as we all know 7 buildings collapsed in NYC due to small fires!!! So god knows what a month of water will do to BKK....maybe when the water starts to leave it will be like a tsunami and the buildings will just flow into the Gulf!!! 

With any luck of course...nature reclaiming it's natural wetlands... I do feel great sympathy and sorrow for the victims of this Thai cock-up...However reap what you sow does spring to mind..

----------


## SteveCM

*Toyota Will Not Halt Investment in Thailand*

11 November 2011



Akio   Toyoda, Senior Managing  Director of  Toyota  Motor  Corporation   Japan  visited  Thailand  to  seek  royal  permission  to  donate  10    million  baht  for  flood  victims  through the  Foundation    Rajaprajanugroh Foundation under  the Royal  Patronage.

 Toyota   will  start  manufacturing  again on  Nov  21 ,insisting that   investment  in  Thailand   will  not  be   halted, as  the country  is  greatly significant  to Toyota  and the situation will be handled  together, he said.  


Source: Thannews

----------


## Mid

*Thai Government: Flooding Won't Happen Again* 
MITSURU OBE             
NOVEMBER 13, 2011

*HONOLULU*The Thai delegation came to the Asia summit  here with a special agenda: to dispel doubts about the country's future  as the manufacturing hub of Southeast Asia, pledging massive investment  to prevent a recurrence of the current devastating floods.

 With short-term draining operations and long-term water-management  projects under way, "we have high confidence that this will not repeat,"  Deputy Prime Minister Kittiratt Na-Ranong said in an interview at the  Asia-Pacific Economic Cooperation summit here. "We are not going to let  it happen again." He was filling in at the summit for Thai Prime  Minister  Yingluck Shinawatra, who stayed home to deal with the floods.


_Dario Pignatelli/Bloomberg News                 Kittiratt Na-Ranong, Thailand's  deputy prime minister and minister of commerce, visiting a  flood-prevention dam at an industrial estate last month_

Mr. Kittiratt, who doubles as commerce  minister, acknowledged his concern that foreign companies, the main  engine of Thailand's economic growth, could leave the country out of  fear of another flooding disaster. But he insisted that the government  is not to blame for the catastropheand even cast some of the  responsibility on the foreign companies whose supply chains have been  disrupted by the flooding.

 "If you ask me whether the government is responsible because of its  malpractice, mismanagement or ignorance, I have no evidence to believe  so," Mr. Kittiratt said. "The Thai government is one of the suffering  parties. Part of the responsibility would have to be accepted by  businesspeople, too."

 The flooding, the country's worst in half a century, is viewed by  some as man-made. Political instability has made it difficult for the  country's frequently changing governments to pursue long-term projects  such as upgrading water-management systems.

 Part of Mr. Kittiratt's mission here was to reach out to Japan, the  largest foreign investor in Thailand. On Saturday, he met with Japanese  trade minister Yukio Edano, who requested short- and long-term measures  to help businesses, including draining submerged industrial estates and  easing visa requirements for Japanese engineers visiting Thailand for  repair work. Mr. Edano promised "maximum assistance" for the country's  long-term reconstruction.


_Brent Lewin/Bloomberg News                 Mr. Kittiratt, here in Bangkok in September, stood in for Prime Minister Yingluck Shinawatra at the APEC summit in Hawaii._

Having already sunk so much investment  into Thailand, Japanese companies don't appearat this pointto be  planning to shift production elsewhere.

 "Japan and Thailand either swim together or sink together," argued  Isamu Wakamatsu, director of the Asia Oceania Division of the Japan  External Trade Organization. "The economic relationship between the two  countries is intertwined."

 But, he added, a repeat of the problem could be enough to make  companies reconsider. "If a similar disaster happens again next year,  many of the manufacturers would have to think about relocating to other  places," Mr. Wakamatsu said.

 As of last week, eight industrial estates near Bangkok had been  submerged. Of the 725 companies in those estates, 447 are Japanese.

 The supply-chain disruptions follow similar turmoil caused by the  March 11 earthquake and tsunami in northeast Japan. But it is more  difficult to deal with an overseas disaster "because we do not have  direct control over the situation," said an official of the Japanese  trade ministry.

online.wsj.com

----------


## SteveCM

*Nissan, Honda Resume Some Production in Thailand After Floods - Bloomberg*

By                     Anna Mukai and Yuki Hagiwara 
Nov 14, 2011


Nissan Motor Co., Japans second- biggest automaker, resumed some production in Thailand after parts supply recovered following the Southeast Asian nations worst floods in almost 70 years. 

 Nissan, which closed its factory in Samut Prakan on Oct. 14, began limited production at the plant today, the Yokohama- based company said on its website. Honda Motor Co., Japans third-biggest automaker, restarted production of some motorcycle and power products in Thailand today, the Tokyo- based company said in a statement. 

 Honda and Toyota Motor Corp. (7203), Japans largest carmaker, withdrew full-year profit forecasts after the floods disrupted supply chains in Thailand, a regional automaking hub. Toyota has said it expects to resume production in the Southeast Asian country Nov. 21 and that operations in Japan should almost fully recover within the same week. 

 The maker of Camry sedans, based in Toyota City, has said overtime production at its North American plants will restart today, with output at normal levels. Toyota estimates it lost production of 87,000 vehicles in Thailand and 40,000 in Japan from Oct. 10 to Nov. 12. 

Mazda Motor Corp. (7261) resumed production of passenger cars at its factory in Thailand today after parts supply partially recovered, said Kozue Nitta, a spokeswoman for the Hiroshima, Japan-based carmaker. 

 Mazda resumed its daytime production shift for passenger cars and plans to restart evening shifts next week, Nitta said by phone. The automaker hasnt decided when production of commercial vehicles will start again. 

Mitsubishi Motors Corp. (7211), which halted production Oct. 13, also restarted production at its plant in Laem Chabang, Thailand, today, the Tokyo-based carmaker said on its website. 


 To contact the reporters on this story: Anna Mukai in Tokyo at  amukai1[at]bloomberg.net; Yuki Hagiwara in Tokyo at  yhagiwara1[at]bloomberg.net 

 To contact the editor responsible for this story: Chua Kong Ho at  kchua6[at]bloomberg.net

----------


## SteveCM

*Toyota remains loyal to flood-hit Thailand  Business 360 - CNN.com Blogs*

November 15th, 2011

Posted by: 
for CNN, Peter Shadbolt



    While Thailands floods offer a golden opportunity for automakers to  diversify their investment across the region  hunting down cheaper  suppliers in nearby Vietnam or Indonesia  the kingpin of the Thai  market, Toyota, has no plans to go anywhere.

 Toyota is so comfortable in Thailand, I dont see any major move  away any time soon, said auto industry analyst Michael Dunne. 

Thailand is a premier manufacturer without equal.

Toyota has said it has scrambled to source parts from other manufacturers in the region and it plans to resume production by November 21.  It plans to restore output further down the supply chain in North  America  currently running at 10% lower than before the flooding  to  normal levels in the coming week.

 Nevertheless, Thailand is too good a fit for Toyota for it to leave  permanently. When the floodwaters recede the automaker has vowed to  return.

 Toyota is not considering shrinking its operations here, Toyotas president Akio Toyodo said recently. If anything we hope to expand.

 The floodwaters have, so far, left Toyotas plants untouched.

 Other markets in the region may be gaining ground on Thailand, he  explained, but they still have a long way to go to steal a march on  Thailand, where infrastructure such as highways and power supply are  better developed.

 Nevertheless, Indonesias growth figures, at 51.1% in 2010, according  to the International Organization of Motor Vehicle Manufacturers  (OICA), are impressive.

 Dunne said Daihatsu recently made a Y20 billion ($260 million) investment in the country.

 Indonesia is on a high right now, he said. Its sales are the largest in South East Asia.

 Thailands automotive manufacturing output is more than double that of its closest rival Indonesia. Figures from the OICA  show Thailand produced 1,644,513 motor vehicles in 2010. This compares  with 704,715 vehicles in Indonesia, and just 567,715 for Malaysia.

 The impact of Thailands floods, meanwhile, are working down the  supply chain and are being felt as far away as Jakarta and Detroit, as  automakers scale back production and suppliers in one of the worlds  most important auto parts hubs struggle to get back on their feet.

 Its interesting to see the impact, said Dunne. Normally Honda in  Indonesia would be offering discounts at this time of year, but the  margins have been cut so deeply by the floods that theyre having to  charge the full price.

 Toyota, Japans biggest automaker, says the floods have cost it 150,000 vehicles in lost production  90,000 in Thailand itself, 40,000 in Japan and the rest across the region.

 Analysts estimate that lost vehicle production from the Thai floods  may total about 250,000 globally  far fewer than the 700,000 from  Japans Tsunami disaster in March  but the disasters had the  disadvantage of coming on top of each other and were certain to hit the  bottom line of all carmakers in 2011.

----------


## SteveCM

*Floods Dampen Thai Manufacturing Appeal, But Don't Bet On An Exodus - Forbes*

11/22/2011

Foreign manufacturers like doing business in Thailand. Political  instability is a drag, but commercial life goes on regardless, and  investors (and tourists) keep coming back for more. Even the sight of  tooled-up mobs battling troops in downtown Bangkok in 2010 quickly faded  as visitors returned to the capital. Yet the impact from the recent  floods will be harder to dispel. The deadly flooding has been hugely  disruptive for global automobile and PC supply chains, in which Thailand  plays a crucial role. PC companies may face an acute shortage of hard  disk drives (HDDs) over the next several months. Japanese automakers,  which are the largest foreign investors in Thailand, are struggling to  recover their lost output. The Thai governments flailing response, and  the risk of future floods, has raised the countrys risk profile.  Insurers are facing huge claims and will want to know what flood  mitigation efforts are in place at Thailands inundated factory estates  before they assume future liabilities.

 But dont bet on an exodus of foreign factories from Thailand. I  think that most companies will stay in Thailand, says Setsuo Iuchi,  regional president of JETRO, the official Japanese trade organisation.  Over 400 Japanese companies suffered losses in industries such as cars,  electronics, food processing, agricultural machinery and building  materials. Uet flood-hit automakers like Toyota have reaffirmed their  commitment to Thailand, which is an export hub for the car industry in  Southeast Asia, even though Indonesia offers a much bigger domestic  market. A recent survey of members by the American Chamber of Commerce  found that none planned to leave as a result of the floods. To be sure,  authorities made a hash of flood defences at industrial estates outside  Bangkok where foreign exporters are clustered. Some were given only a  few hours to evacuate. But it was a once-in-a-lifetime event, and  lessons have been learned, goes the argument. Besides, if not Thailand  then where? Other Southeast Asian countries have their own pitfalls.  Thailand is centrally located, reasonably cost-efficient and  consistently pro-investment. Its a good business environment, says  Iuchi.

 One possible holdout is Western Digital,  which suffered massive flooding at its two plants in Thailand. Industry  sources in Thailand and Malaysia told Forbes that WD was ramping up  production in Malaysia and is reluctant to reinvest in Thailand after  incurring such a huge loss. A company spokesman said WD was working to  restore its production in Thailand. Since last week, a big clean-up is  underway at one of its plants (the other is still inundated). CEO John  Coyne is visiting Thailand this week and met Monday with a senior  government minister. Meanwhile, investors have switched into the stock  of its U.S. rival Seagate, which didnt have see flooding at its  factories in Thailand, though many of its suppliers have been affected.  WD may be holding out for better treatment from the Thai government  before it commits itself to restoring its lost capacity, which would  cost hundreds of millions of dollars. Its not the only one: Japanese  firms are also lobbying for tax incentives and tariff waivers on spare  parts and machinery. At the end of the day, its a safe bet that most  manufacturers will get enough of what they want to stay put in Thailand,  at least until the next convulsion.

----------


## SteveCM

^



> WD may be holding out for better treatment from the Thai government before it commits itself to restoring its lost capacity, which would cost hundreds of millions of dollars. It’s not the only one: Japanese firms are also lobbying for tax incentives and tariff waivers on spare parts and machinery. At the end of the day, it’s a safe bet that most manufacturers will get enough of what they want to stay put in Thailand, at least until the next convulsion. SteveCM is invisible Add to SteveCM's Reputation Report Post   	 Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!


Not unlike that well-worn Thai saying - _"No money, no honey"_.....

----------


## baldrick

> at least until the next convulsion.


ah , foresight - there is a few convulsions on the horizon

----------


## Rocksteady

Having lived and worked in Japan for half decade, these authorative declarations of remaining in Thailand seem just a little too ... (rule 1. Never reveal your real thoughts and intentions...).

One hopes for the sake of the Thais that they do remain but ... :mid:

----------


## SteveCM

*Bangkok Post : BoI: Investment on course despite floods*Published: 26/11/2011 at 12:00 AMNewspaper section: BusinessInvestment in Thailand will remain intact  despite heavy floods, with applications for Board of Investment (BoI)  privileges likely to top 500 billion baht this year, says Industry  Minister Wannarat Channukul.

 _Kittiratt: To start with quick fixes
_ 
 Applications last year reached 447.4 billion baht, but over the first seven months this year they already reached 470 billion.

 The BoI approved 16 licences yesterday for investment privileges  worth a combined 32 billion baht. Automotive and renewable energy had  the highest investment values among the approved projects.

 Japanese auto-parts manufacturer Jatco (Thailand) Co applied for 9  billion baht of investment to be located at Amata Nakorn in Chon Buri,  followed by state-majority-owned Bangchak Petroleum Plc's investment  project in solar electricity worth 3.6 billion baht in Ayutthaya and  Chaiyaphum.

 Next was a 2.8-billion-baht radial tyre production plant for China's  Linglong Tyre Co, with annual output at 2 million sets in Rayong.

 Mr Wannarat said the government expects to finalise a study on a tax  holiday extension and other incentives for flooded factories next week.

 The board instructed the Revenue Department to study how much revenue collection would be affected by the tax holidays.

 Some 937 flooded factories were given BoI privileges, 553 in  industrial estates and 384 outside. Most of them are located in  Ayutthaya and Pathum Thani. Their combined investment capital is 700  billion baht.

 Factories located in the affected industrial estates paid corporate  income tax of 12 billion baht last year. Income tax from factories  outside the industrial estates was not available.

 In another development, Deputy Prime Minister Kittiratt Na-Ranong  said yesterday Thailand's economy is likely to grow by more than 7% next  year as the government spends heavily on post-flood reconstruction  despite the gloomy global outlook.

 "Thailand's GDP growth in 2012 should be exceptionally good, and it  could reach as high as 7% or more," he said at the Foreign  Correspondents Club of Thailand on Thursday night.

 Mr Kittiratt shrugged off the global slowdown, saying the rise in  domestic spending, coupled with private and government investment, would  lead the way in driving the economy.

 The government, he said, would continue to support the rebuilding process of various industries.

 It will also spend large amounts of funds to prevent the flood crisis from recurring next year.

 "We have to start with quick fixes and also work to improve the water  flow, as we do not want to see sandbags to protect against the flow of  water next year," Mr Kittiratt said.

 He said that the country's infrastructure would be adjusted to handle  issues arising from climate change, though this was a long-term plan  that could take years.

 The government has vowed to invest as much as 800 billion baht to prevent future flooding problems.

 Mr Kittiratt conceded that there was little time to undertake the  various moves with the rainy season set to begin in May next year; but  he added that once the rebuilding starts it will most likely create a  labour shortage, quelling fears of massive layoffs.

 Apart from this, he said as much as 15 billion baht would be provided  to various industrial estates at 0.01% interest for a period of seven  years to build dykes.

 This would be part of the government's effort to rebuild the country  aside from fostering confidence among investors, for which purpose the  various ministers have been travelling around the world.

 Mr Kittiratt said the government would go ahead with its planned  policy of raising minimum wages, which is set to begin April 1, 2012,  postponed from Jan 1.

 He said the government was not too concerned about companies  threatening to leave or not invest because of higher wages, as the  country must move up the value chain.

 His notion is that companies would want to maximise output and  therefore invest in the skill development of their labour force, which  would be a good thing for Thailand.


Writer: Yuthana Praiwan and Umesh Pandey

----------


## Butterfly

THB is 32 for USD, do your transfer now !!!

----------


## LooseBowels

> Mr Kittiratt said the government would go ahead with its planned policy of raising minimum wages, which is set to begin April 1, 2012, postponed from Jan 1. He said the government was not too concerned about companies threatening to leave or not invest because of higher wages, as the country must move up the value chain. His notion is that companies would want to maximise output and therefore invest in the skill development of their labour force, which would be a good thing for Thailand.


Top policy :Smile: 

But the key is in the education of the isaarn children to provide a skilled equal opportunity  workforce.

Then if companies want to leave, fine, but they will be replaced by wiser sages.

----------


## ralphlsasser

Thailand needs to teach Critical Thinking skills as apposed to the here and now mindset.

----------


## tomta

You can't teach critical thinking skills when practising critical thinking can get you a 20 year jail sentence.

----------


## robuzo

^Thought crime legislation puts a damper on thinking, for sure.

----------


## jamiejambos

> Thailand needs to teach Critical Thinking skills as apposed to the here and now mindset.


 Thailand needs to provide its children with a  a good basic education first....then the rest will follow.

----------


## KAPPA

Seems, er.... one particular  building  was the main objective  to be spared  from flooding, the rest of the country be damned.  Foreign  investors are so pussy- whipped though, I doubt this will deter the future of investment. 

An entire nation that  revolves around wholesale whoring and an almost psychotic idol worship.

----------


## hazz

^I sure they don't worship taksin that much.

----------


## Rocksteady

^ hahaha!  Nice one!

----------


## Rocksteady

> But the key is in the education of the isaarn children to provide a skilled equal opportunity workforce.


It depends on whether the vast majority of issarn children actually want to be educated beyond the here and now!

Many can state that those of Bangkok much prefer the tried and tested method of tea money payments to enter good schools and the cost of education to include a passing grade regardless of the efforts of young somchai!

Is there any reason to suggest that the North East would be any different?

----------


## SteveCM

*Thailand 'remains attractive investment destination' - The Nation*

WORLD BANK
*Thailand 'remains attractive investment destination'*

         Wichit Chaitrong
The Nation November 29, 2011

 

Floods which would need as much as Bt755 billion for  rehabilitation will not scare away much foreign direct investment, said  a World Bank economist.

              "Globally and regionally, Thailand remains an attractive investment  destination. We won't expect lot of businesses to relocate," Annette  Dixon, the World Bank's country director, at a press conference  yesterday.

      The government should give priority to the flood recovery effort over  populist policies such as raising the minimum wage and subsidising rice  farmers, she added.

     While the Bank of Thailand has been urged to cut the policy rate to  boost the economy, given the high volatility of the global economy, it  "should be extremely prudent", Dixon said.

     Ekaterina Vostroknutova, senior economist for East Asia and the Pacific  region, said developing East Asia countries were now more concerned  about growth than inflation and they had not yet made a move on policy  rates. "Central banks in Asia are waiting to see things unfold," she  said.

     Thailand should increase both public and private investment from the current 20 per cent of GDP to 30 per cent, she added.

     The bank's economists said the slower growth in Thailand this year was  due to the global economic slowdown, the earthquake in Japan and the  flood here.

     GDP is expected to expand only 2.4 per cent this year, slower than 3.6  per cent in pre-flood forecasting. The flood's impact is expected to  slash GDP growth by 1.2 percentage points. However, growth is expected  to be higher next year at 4 per cent, up from 3.7 per cent predicted  previously, as reconstruction would lead to more economic activity.

     The Word Bank estimated that the private and public sectors will need  Bt755 billion to rehabilitate for a stronger and more resilient economy.

     The government needs to invest Bt235 billion over the 24 months or so,  largely in water-resource management. The private sector will need to  invest much more at Bt520.1 billion, said Kirida Bhaopichitr, the World  Bank's senior economist for Thailand.

     The bank's report on "2554 Thailand Floods: Rapid Assessment for  Resilient Recovery and Reconstruction Planning", which draws on a survey  conducted from November 725, suggests that damages and losses will  total Bt1.36 trillion.

     The private sector has suffered the most at Bt1.28 trillion, or 94 per  cent of the total, while the public sector bears 6 per cent. The floods  have disrupted the supply chains of many industries, particularly  automobile and electronics, she said.

     The flood's impact will turn the current account from a surplus to a  deficit next year. The current-account surplus for this year will fall  to US$2.6 billion from the $11.2billion pre-flood forecast.

     "The bank estimates the country next year to run a current-account  deficit of $2.5 billion, or 0.6 per cent of gross domestic product,  because of more imports for reconstruction," she said.

     However, public-debt law permits the government to borrow from either  the domestic or overseas market, so the government need not issue an  emergency decree. The private sector will also be able to borrow from  the domestic market, which has adequate liquidity, Kirida said.

     The Finance Ministry said economic indicators suggest the economy started to contract last month due to the flooding.

     Value-added-tax collections expanded only 11.3 per cent year on year  last month, down from 13.3 per cent in the previous month, said Somchai  Sujjapongse, director-general of the Fiscal Policy office.

     Car sales plunged by 38.8 per cent compared with an expansion of 29.6  per cent in the month before. Sales of commercial vehicles also  plummeted by 41.8 per cent, suggesting a contraction in private  investment.

     Preliminary data show that the manufacturing production index tanked by  34.5 per cent, while exports edged up only 0.3 per cent year on year.

----------


## tomta

> an almost psychotic idol worship


Yes, I think that describes it well.

----------


## SteveCM

*Flood-hit auto industry gets relief with tariff exemption - The Nation*

BUSINESS
*Flood-hit auto industry gets relief with tariff exemption*


         Nalin Viboonchart
Wichit Chaitrong
The Nation
 November 30, 2011

 

The government is offering much-needed respite to  the auto industry with an exemption from import tariffs for eight months  on completely built units (CBU), parts and machinery in a bid to save  the jobs of more than 200,000 workers.

      While Honda Automobile (Thailand) is the only company to benefit from  the CBU imports as its assembly plants in Rojana Industrial Park are  inundated, others will enjoy zero tariff on the import of parts and  machinery. The Finance Ministry says without the waiver, Honda would  have had to pay 80 per cent of car value as CBU import tariff. Tariffs  on parts range from 0-30 per cent, while that on machinery is 0-5 per  cent. 

      Honda executive vice president Pitak Pruittisarikorn yesterday hailed  the decision, which will ease the supply-chain disruptions as several  suppliers are recovering their flooded plants.

      "I believe the government understands the tough situation the  automotive industry is facing. Without any help, some workers will lose  jobs," he said. 

      Honda will work out the number of vehicles to be imported and the  number of units to be imported from each of the other manufacturing  sites. Some difficulties remain as each site caters specifically to  demand in their local markets, but the imported CBU must be the same  models produced here. He expected the imported units would arrive in  Thailand within a month. 

      Honda's assembly plants, which have suspended production since early  October, can produce 240,000 units per annum, with models ranging from  City, Jazz, Civic, Accord and CR-V. The firm shifted 3,200 units out of  the site, leaving some 800 submerged. 

      Pitak said the company is working out when the plants could resume  operations, as water has been completely drained out since last weekend.  

      Honda's North American plants will return to normal production by  tomorrow. Thailand is a large supplier of computer chips that control  engines and other functions.

      Following the Cabinet's |decision on the waiver until June 30, 2012,  the Office of Industrial Economics will look into the details of tax  exemption and import permits.

      Government Spokeswoman Thitima Chaisaeng said the Finance Ministry will  cut the import tariff for truck assemblers by 10-20 per cent. |The  Labour Ministry and Immigration Department are being instructed to ease  rules and regulations on work permits for flood specialists.

----------


## forreachingme

The Honda CBU deal must be good for the Philippino plant just next door from my house.

They went on decreasing production gradually this 2 last years and were looking to close the plant soon. 

Eventually a revival for them...

Got a good friend in there,will ask him if they increase again production...

----------


## Rocksteady

Hmm.  Might be a good time to import the Triumph Stag, I've had my eyes on for years.  No tariffs!  Can it be true?

----------


## Rocksteady

> but the imported CBU must be the same models produced here.


I new it was too good to be true!

----------


## BobR

> Originally Posted by SteveCM
> 
> but the imported CBU must be the same models produced here.
> 
> 
> I new it was too good to be true!


If the rules were too simple there would be no opportunity for graft.

----------


## KAPPA

Interesting Op Ed last Sunday, B Post, wishing the world Bank would be able to make loans so as to eliminate the inevitable, er.. siphoning. ( At least on Thailand's end. )

----------


## BobR

> Originally Posted by LooseBowels
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by SteveCM
> ...


Sorry, but this is a serious comment, not a trollish one.  Thailand's educational problems are cultural.  Much of it is another by-product of that non-confrontational save face at the cost of reality culture. During 4 years of teaching at a Thai Government school, I've not seen even one child held back (forced to repeat a grade) or forced to do remedial work or attend summer school, even though some of them (mostly boys) seem incapable of learning anything, or even sitting still long enough to try.  There is absolutely no formal disciplinary system whatsoever in the school, and promotions to the next level are given based on age, not achievement.  
I'm sure the private schools here realize that confrontation in the form of discipline and the threat of deliberately humiliating a child by forcing him to repeat a grade (and being publicly shamed in front of his friends) are necessary to motivate some students.

----------


## Rocksteady

> I'm sure the private schools here realize that confrontation in the form of discipline and the threat of deliberately humiliating a child by forcing him to repeat a grade (and being publicly shamed in front of his friends) are necessary to motivate some students.


Absolutely agree with you, Bob!  I've been teaching here for 15 years and its all a sham!  western teachers are generally threatened with not having their contract renewed at the end of a year unless they bump up grades and submit false statements of achievements!

Though there have been some students who are willing to apply themselves and meet standards the majority soon notice that little somchai at the back, who never does homework, study for exams and often ditches class is given the same grade as them.  This then triggers a sense of 'why bother to study?' from many in class!

Thailand has to undergo a huge cultural seachange to progress from low paid grunt working futures if they wish to move up from feudal surf status!

----------


## Mid

*Flood disaster worsened by corruption, Thai business leaders say*
Dec 11, 2011

*Bangkok -* Thailand's flood disaster has been made worse by  government  corruption, business leaders have complained, a news  report said  Sunday.  

  Thai Chamber of Commerce chairman Pongsak Assakul was  quoted by  the Bangkok Post as saying the flooding was one of the worst  crises  ever to hit the kingdom.  

  'And state corruption made it worse,' he said.  

   The government's Flood Relief Operations Command has been accused  of  corruption related to its management of donated items and its  purchase  of relief supplies.  

  Members of the chamber agreed at a meeting  Saturday that they  would no longer pay bribes to state officials and  they would closely  monitor government projects for corrupt practices.  

  The chamber also declared September 6 as Corruption Suppression  Day.  

   The date commemorates the death on September 6 of Dusit  Nontanakorn,  who spearheaded several anti-corruption campaigns in  recent years.  

   Overall, Thailand sustained about 21.3 billion dollars in flood   damage, according to the World Bank, while 689 people have died in   flood-related incidents since July 25.

monstersandcritics.com

----------


## Mid

> Corruption Suppression Day.


 :rofl:

----------


## SteveCM

*First plunge in exports in 25 months - The Nation*

FLOOD IMPACTS

*First plunge in exports in 25 months*

            Petchanet Pratruangkrai

The Nation December 20, 2011  2:01 pm 


                 Thailand's November exports showed the first  year-on-year plunge in two years, as the export value slumped 12.44 per  cent to US$15.98 billion.

      According to the Commerce Ministry, supply-chain disruptions took a  heavy toll on the manufacturing sector in the month and attributed  chiefly to the fall.
      The monthly decline was the first time since October 2009.

      In the month, imports also dropped 2.43 per cent to $16.87 billion, resulting in a small trade deficit.

      Thai exports during the first 11 months grew 19.04 per cent to $211.8  billion. Imports went up by 25.47 per cent to $209.34 billion. The  country locked in a trade surplus of $2.46 billion in the first 11  months.

      "Exports in December is expected to continue a decline due to flood  impacts. Still, for the full year, exports growth should be at least  15-20 per cent this year," said Deputy Commerce Minister Siriwat  Kajornprasart.

----------


## Butterfly

well the bad news has been confirmed by a few CEOs and CFOs I recently talked to who were affected by the flood

their customers are now asking Thai companies not to expand locally but to take their business else where, notably in China

expansion in the North East is also not feasible because of the lack of infrastructure and land speculation for industrial park

----------


## SteveCM

*Bangkok Post : BoI OKs recovery measures*

FLOOD RELIEF 
*BoI OKs recovery measures*

*Expecting B12bn hit to yearly tax revenues  *  Published: 30/12/2011 at 12:00 AMNewspaper section: BusinessThe Board of Investment (BoI) yesterday gave the  green light for measures, including a corporate income tax extension,  to help flood-hit companies recover.

 _A worker makes preparations for the Board of Investments annual  fair, beginning Jan 5 at Impact Muang Thong Thani. The fairs theme is  Going Green for the Future._

 The privileges are divided into two categories to cover only factories whose investment privileges have not yet expired.

 First, projects which are subject to a tax-exemption limit will be entitled to new eight-year tax exemption.

 If the projects continue to invest in the same province that was  affected by the flood, tax will be waived at a rate of 150% of the new  investment, plus the effective value of tax exemption they are already  eligible for.

 Tax exemption for those deciding to relocate plants to other  provinces is given at 100% of investment plus the effective value of tax  exemption.

 Second, factories without a tax exemption limit will be offered an extra period of corporate income tax exemption.

 Projects with privileges remaining for no more than three years will see the period extended up to eight years.

 Projects with privileges remaining for more than five years will be entitled to extra privileges.

 A 50% tax rebate will be given for two years to those with privileges  remaining for more than five to six years, with a 50% tax rebate for  four years for those with privileges remaining for more than six to  seven years, and a 50% tax rebate for five years for those with  privileges remaining for over seven to eight years.

 The BoI also resolved to provide an eight-year tax waiver to  industrial estates investing in the flood-prevention system. However,  the maximum tax waived must not exceed 200% of the investment.

 A total of 7,510 factories nationwide were inundated, of which 1,488 have been given BoI privileges.

 However, only 668 factories will be eligible for the extended tax  waivers, 487 of which qualified in the first category of privileges and  181 in the second.

 The decision would incur a loss of tax revenue of 12 billion baht a year, according to the Finance Ministry's estimate.

 BoI secretary-general Atchaka Sibunruang said 800 other companies  affected by the flood will not receive new incentives as their  privileges had expired. Nonetheless, they would benefit from the  government's flood relief measures.

 Businesses are required to submit their applications by the end of next year.

 The Board of Investment yesterday approved investment applications  for 18 projects valued at 29.69 billion baht in the alternative energy,  service and infrastructure sectors, including a 6.92-billion-baht  proposal for Thai Airways International Plc to purchase two Airbus SAS  330-343 aircraft.

 Eight of the projects, worth 7.58 billion baht, were in solar energy,  while five infrastructure projects were worth almost 10 billion baht.

 Applications for investment privileges this year totalled 1,847  projects worth 663.6 billion baht, a 32% increase from the BoI's  previous estimates of 500 billion baht.

 The number of projects increased by 21% compared to last year's 1,524  projects, while the value of investment increased by 61% compared to  412 billion baht last year.

 Foreign direct investment (FDI) applications this year were valued at 390.92 billion baht, a 67% rise from last year.

 FDI applications totalled 1,019 projects during the period.

 Most of the investment came from Japanese companies, with 543 projects worth 187.75 billion baht, a 82% increase from last year.

 "We will see a positive trend next year, with the government's  efforts to bring back confidence, starting with the BoI Fair 2011 that  will be held on Jan 5," said Industry Minister Wannarat Channukul.

 The BoI estimates applications next year to total 600 billion baht,  with the focus on the bioplastics, processed agriculture, alternative  energy, high technology, environmentally-friendly, medical tools and  para rubber sectors.

 "We were considering between 500 billion and 600 billion baht, but  since this year's applications are high, we settled on the latter  figure. But we want to focus more on the quality of the projects [rather  than the investment value]," Dr Atchaka said.


Writer: Nanchanok Wongsamuth
Position: News Reporter

----------

