Foreign Investors Furious With Thai Govt Response To Flooding

[webfact]

Foreign Investors Furious with The Govt's Response to Flooding

Foreign investors in Thailand are angry at the Thai government’s response to the floods that ravaged many industrial zones across the nation.

A CNBC Broadcast reported that Japanese investors in Thailand have voiced outrage at the Thai government, saying that it has failed to tackle the ravaging flood, which has caused significant damage to the business sector.

President of Rohm Integrated, one of the largest Japanese semiconductor manufacturers, Hiroshi Minami, said the government kept telling the company the situation was going to be fine.

However, Navanakorn industrial estate was inundated, and production was suspended for nearly a week.

The first floor is almost entirely submerged.

In addition, J.P. Morgan auto analyst Kohei Takahashi predicted that the main Honda auto assembly plant will be forced to close for at least three months.

The damage was estimated at some 15 billion yen in operating profits, or the equivalent of six billion baht.

The supply shortage is likely to affect the rest of the ASEAN region.

Other automakers including Toyota, Isuzu, Mitsubishi, and Nissan are also faced with this predicament.

The government, which came to power in last August, failed to stop the water from fluxing into the capital of Bangkok and many canals are expected to overflow.

Volunteer workers rushed in to pile sandbags along the Chao Phraya River while Bangkok residents were frantic to move their belongings to higher ground.

The highways were converted into parking lots as drivers attempt to escape the flooding.

Seven industrial parks have been evacuated, disrupting industrial supply chains, including the electronic and automobile industries.

Many companies are saying that as of now they cannot even enter their facilities.

Meanwhile, senior economist at the Japan External Trade Organization Seiya Sukegawa pointed out that Japan is the biggest investor and employer in Thailand who plays a big role in boosting the Thai economy.

He added that flooding has an adverse effect on the Japanese investors, especially the small and medium entrepreneurs.

In addition, he reiterated that the Japanese may no longer do business in Thailand unless the government helps businesses recover.

In the meantime, Minebea Thailand Company General Manager Yasunari Kuwano said the company is unable to get into the factory to inspect the damage.

Japanese executives have expressed concern that the loss of production will reduce its competitive edge and clients will turn to rivals, especially in intensely competitive industries such as electronics.

-- Tan Network 2011-10-25

[whybother]

PM Yingluck Declines To Declare SOE For Fear Of Affecting Foreign Investors Confidence

http://www.thaivisa....ors-confidence/

Now that foreign investors confidence is gone, will Yingluck be declaring a SOE?

Edited October 25, 2011 by whybother

[alstaxi]

The people who live here are not too impressed with the air head response to the flood either.

[DocN]

If you buildt your billion dollar factory on flood-land, believe the guy who takes you out for drinks and hookers at Nana that "no flood there" and you don't bring in your own experts to check on the risk: NOT MY PROBLEM!

[wintermute]

In addition, he reiterated that the Japanese may no longer do business in Thailand unless the government helps businesses recover.

In another thread about this topic this was mentioned before. I'm sure this would be a good time for other SEA countries (Vietnam and Malaysia especially) to step up and offer tax breaks, relocation incentives, etc.. to woo Japanese industry.

Japanese businessmen aren't stupid. They aren't going to keep throwing money down a black hole especially if the authorities are screwing them.

[givenall]

Where is the Army when we need them

[jybkk]

If you buildt your billion dollar factory on flood-land, believe the guy who takes you out for drinks and hookers at Nana that "no flood there" and you don't bring in your own experts to check on the risk: NOT MY PROBLEM!

My guess is that they did bring experts and they said "you'll be fine providing upstream dams and existing flood protection are properly operated". The problem here is that they weren't.

I strongly believe that the cextent of the crisis would have been much more limited if the water had been properly managed over the last few months.

[aaacorp]

About a government not able to do proper mesures after a disaster, the japanes may think about the tsunami and the nuclear plant in fukushima....

[scorecard]

If you buildt your billion dollar factory on flood-land, believe the guy who takes you out for drinks and hookers at Nana that "no flood there" and you don't bring in your own experts to check on the risk: NOT MY PROBLEM!

My guess is that they did bring experts and they said "you'll be fine providing upstream dams and existing flood protection are properly operated". The problem here is that they weren't.

I strongly believe that the cextent of the crisis would have been much more limited if the water had been properly managed over the last few months.

Why were these large industrial estates given permission to develop / start up in their current locations, surely some internal agencies should have said the locations were not suitable (example Thai BOE).

And surely there are locations which would be higher and above flood risks, are accessible by transport and infrastructure needs, close to towns etc.

Guess it's the old story of cronyism, etc., make a dollar and never mind the consequences to workers, their families etc.

[GazR]

I'm not trying to say whether it's right or wrong, I'm just saying what it is -

i.e. corporate welfare

[wintermute]

The reason why it was built was because the financial incentives and profit margins must be huge to take the risk. That's why the Japanese government is willing to spend money on reconstruction costs to aid the factories underwater. The profit margin must be enormous.

[toenail]

Comparing the build up of flooding since July to an earthquake or sunami is not the same. The businesses were asking way back if there was a chance of flooding in the area, and the authorities said "NO". If your international company invests millions of dollars in a plant, you expect some support from the government. ---But (in my opinion) after living in Thailand, I would never trust any government official having things under control --- Thais are not that pro-active in preventing tragedies or accidents. You wait for the problem then hope it goes away (with a smile). The Japanese should have known about this cultural trait.

[macjin]

What do the japs think? this is Japan or something? havent they heard of "TIT"? sheesh. They must Do Thai way, or do Highway. Lifes a Bitch aint it.

[animatic]

Let's see:

The floods from typhoons were happening up north, water shed monitors knew the situation, but the government was busy getting Thaksin as visa to go and lecture Japan business magnets, about how with his people now in power, business will be soooooo good in Thailand for Japanese interests, that they must jump up and down for him to be seen on the world stage.

Meanwhile the government was completely ignoring the weather and watershed issues.

Yingluck was prepping road shows highlighting herself, to Alphbeltically listed ASEAN nations. See Me I'm the new PM!

Meanwhile the government was completely ignoring the weather and watershed issues.

The government was working full tilt to install as many Shinawatra clan cronies and family members as possible into critical control positions. Debating constitutional changes and ways to keep the army and political opponents in their place indefinitely.

Meanwhile the government was completely ignoring the weather and watershed issues. Ignoring that decisions have to be made;

MORE than a day before disaster strikes,

More than a week before disaster strikes,

More than a MONTH before disaster strikes.

THREE Months before disaster strikes, because it is a SLOW disaster than CAN be dealt with if forethought and control is exerted early enough.

Who forgot to tell Disaster Prevention and Mitigation to do things BEFORE the disaster turns to Emergency in all but name?.

But don't EVER tell the Japanese it's an EMERGENCY!

FROC Fools Rendering Outright Calamity

Edited October 25, 2011 by animatic

[rubl]

If you buildt your billion dollar factory on flood-land, believe the guy who takes you out for drinks and hookers at Nana that "no flood there" and you don't bring in your own experts to check on the risk: NOT MY PROBLEM!

Obviously you know nothing. For Japanese that's Thaniya on Silom, not NaNa

Edited October 25, 2011 by rubl

[Lopburikid]

The people who live here are not too impressed with the air head response to the flood either.

Yes, I agree with you alstaxi.

We were told 4 weeks ago that there would be no flooding and if there was it wouldn't be deep.....

Now we are under 5 feet of water,inside and outside the house, we asked for food 2 weeks ago..we got 2 bags of noodles,we asked for drinking water on a week ago..not drinking water as jet.

We asked to be evacuated 3 days ago....yes sure,but we have to pay for the boat first.........Stinks!

[Frodo1111]

When the USA and Mexico made the border a cheaper alternative to doing factories in the USA, All the companies built along here and then when it was producing results for and making hte economy better for the Mexicans it was cheaper to build new factories in other Asian countries and forget the huge monetary investments in mexico that to pay higher wages....so as it gets more expensive here it will also be the case here and in other countries until ALL of us decide that to take advantage of one over the other to make US better off is no longer a viable option.

This is what he wall street protests all over the world are really about I feel in my humble opinion.

[englishinsiam]

I feel for you and your neighbours Lopburi And my wife and I hope you can get out okay in one piece.

Even if you have to pay for the boat it's a small price to pay for your families health and safety.

[smedly]

The reason why it was built was because the financial incentives and profit margins must be huge to take the risk. That's why the Japanese government is willing to spend money on reconstruction costs to aid the factories underwater. The profit margin must be enormous.

just as well China and Japan don't quite get on or we may have seen a dramatic shift of loyalties, there's always Cambodia and Vietnam but maybe the infratructure is not quite as good - 7 months a year, what if these seasonal floods and miss handling are going to be the norm every year........what then ????

[bigbamboo]

There's an old saying, you get what you pay for. The foreign investors come here and to other similar places for a reason, it's cheap.

[IsaanAussie]

Please remember that many of these outskirt industrial parks were promoted to decentralise Thai Industry outside Bangkok. Unfortunately most of the land available was flood prone. The issue was addressed and believed adequate by all. If he had been around even Noah would have used the incentitives and tax breaks and started building Arks in Ayutthaya.

[DocN]

If you buildt your billion dollar factory on flood-land, believe the guy who takes you out for drinks and hookers at Nana that "no flood there" and you don't bring in your own experts to check on the risk: NOT MY PROBLEM!

Obviously you know nothing. For Japanese that's Thaniya on Silom, not NaNa

oh sorry...and I live 5 minutes from the dam_n thing! Barbican is great for farang too , though!

[Ijustwannateach]

The way I read this is:

Japanese Business to Thai Government: You screwed up. You cost us lots of money. You owe us, or we take our business elsewhere.

Look for a huge 'Foreign Business Relief Fund' to be financed with our tax money- yup, yet again, taking money away from where it should really be spent (should have been spent months ago). Hope the folks out in the provinces don't mind.

[bigbamboo]

Please remember that many of these outskirt industrial parks were promoted to decentralise Thai Industry outside Bangkok. Unfortunately most of the land available was flood prone. The issue was addressed and believed adequate by all. If he had been around even Noah would have used the incentitives and tax breaks and started building Arks in Ayutthaya.

Not without a work permit he wouldn't.

[marinediscoking]

Comparing the build up of flooding since July to an earthquake or sunami is not the same. The businesses were asking way back if there was a chance of flooding in the area, and the authorities said "NO". If your international company invests millions of dollars in a plant, you expect some support from the government. ---But (in my opinion) after living in Thailand, I would never trust any government official having things under control --- Thais are not that pro-active in preventing tragedies or accidents. You wait for the problem then hope it goes away (with a smile). The Japanese should have known about this cultural trait.

How are they different? The worst monsoons in 70 years hit in the north, both natural disasters. The Japanese carefully studied tsunamis of their past and were thought of as being the best in preventative measures in the world. Still that preparedness did not prevent the water going over the tsunami walls.

Even the thai's when building a new hotel or apartment house put down at least a 1 meter fill to be above street level.

The biggest risk to building in that part of thailand would be flooding. This is not rocket science.

[MaiChai]

I hate to be negative but it does seem a Thai trait that they are not very good at planning ahead. Thais live in the here and now.

I see many jobs for western project managers in Thailand. You might ask why they don't employ locals for the jobs?

[rogerdee123]

PM Yingluck Declines To Declare SOE For Fear Of Affecting Foreign Investors Confidence

http://www.thaivisa....ors-confidence/

Now that foreign investors confidence is gone, will Yingluck be declaring a SOE?

She probably now wishes she had. She & PTP could (perhaps correctly for once) blame the Army.

[malcolminthemiddle]

If you buildt your billion dollar factory on flood-land, believe the guy who takes you out for drinks and hookers at Nana that "no flood there" and you don't bring in your own experts to check on the risk: NOT MY PROBLEM!

It is a problem if the 1000s of Thai workers employed in the billion dollar factories no longer have a job.

[Payboy]

Japanese businessmen aren't stupid. They aren't going to keep throwing money down a black hole especially if the authorities are screwing them.

Obviously, you haven't seen them in action at Thaniya.

[whybother]

How are they different? The worst monsoons in 70 years hit in the north, both natural disasters. The Japanese carefully studied tsunamis of their past and were thought of as being the best in preventative measures in the world. Still that preparedness did not prevent the water going over the tsunami walls.

Even the thai's when building a new hotel or apartment house put down at least a 1 meter fill to be above street level.

The biggest risk to building in that part of thailand would be flooding. This is not rocket science.

The Japanese planned for tsunamis, they just didn't plan for a huge one.

The Thais planned for flooding, they just didn't plan for a big one.

The difference is, when the huge tsunami hit Japan, there was (as good as) no warning that it was going to hit, whereas in Thailand, the government knew there was going to be a big flood hitting central Thailand and particularly Bangkok for nearly a month.