Thai unrest has Japanese firms worried about future

[webfact]

Thai unrest has Japanese firms worried about future
THE NATION

BANGKOK: -- A GROWING NUMBER of Japanese companies might re-examine their investment strategies in Thailand because of the negative impact of anti-government rallies in Bangkok, according to Japanese newspaper Yomiuri.

Many Japanese investors regard Thailand as a vital production base, but if they feel they must move elsewhere, it could spell disaster for the Kingdom's export sector, which is already in bad shape.

According to the Thai Board of Investment, Japan is the largest investing country in Thailand. For Japanese automakers and electrical-appliance manufacturers, this country is a leading production base.

The Japan External Trade Organisation reported that 1,458 Japanese companies were operating in Thailand as of April. In 2012, Japanese companies made 761 investments worth a total of Bt348.4 billion.

But if political instability drags on in Thailand, Japanese companies might become reluctant to invest here and take their business elsewhere.

On the tourism front too, there are signs that that the number Japanese visitors to Thailand has declined since the beginning of the demonstrations.

Yomiuri reported that many tourists who had planned to depart for Thailand in December or January had postponed their trips, forcing Japanese travel agencies to scramble for more information about the conditions here.

Keiichiro Oizumi, a senior research fellow of the Japan Research Institute, said Japanese companies would likely continue to re-evaluate their operations in Thailand. "Moves to transfer some production processes to other countries with lower labour costs while keeping production bases in Thailand will also accelerate," Oizumi said.

Nobuyuki Ishii, secretary-general of the Japanese Chamber of Commerce in Bangkok, expressed concern about the possible impact of the political unrest.

"If the anti-government demonstrations last much longer, adverse effects will appear in, for example, automobile sales. We can only hope the situation calms down as quickly as possible," he said.

Chubu Economic Federation chairman Toshio Mita, who is also chairman of Chubu Electric Power Co, said at a press conference on Monday: "The supply of parts to manufacturing plants may be stopped, and the movement of people may be obstructed. I hope the situation will return to normal as soon as possible."

To minimise the negative repercussions from the rallies, the Thai Commerce Ministry has opened new service counters for issuing certificates of origin.

According to Yomiuri, the Japanese Embassy in Thailand told the newspaper there had been no problems in the issuance of work permits, visas, customs clearance and other matters since Thai officials had become more lenient.

Some Japanese companies have already moved or plan to move operational bases from Thailand to nearby countries, such as Cambodia and Laos. In October, Nikon established a new plant that makes single-lens-reflex cameras in Laos and transferred |part of its Thai production processes there.


-- The Nation 2013-12-05

[lemoncake]

And if that happens, bye bye civilized Thailand, Hello again 3rd world country

Or forgot to mention, bankrupted government

[Jasun]

A lot of the multinationals in marketing, logistics and supply left after the last round of protests, it will a tragedy if manufacturing and industry started pulling out. It will all make Singapore and Malaysia very happy.

[JoeThePoster]

Thai unrest has Japanese firms worried about future

Will be difficult to move Thaniya Plaza to Vietnam or Myanmar.

[kurnell]

The only thing that will get the attention of the rich families running this country is losing their wealth.

[Johpa]

The only thing that will get the attention of the rich families running this country is losing their wealth.

The real "Hi-So" families do not keep their wealth inside of Thailand. They are all prepared to jump ship if the need arises.

[kurnell]

The only thing that will get the attention of the rich families running this country is losing their wealth.

The real "Hi-So" families do not keep their wealth inside of Thailand. They are all prepared to jump ship if the need arises.

Sorry, no cigar for you

[Bluespunk]

"Thai unrest has Japanese firms worried about future"

They're not alone in that.

[PaullyW]

Thai unrest has Japanese firms worried about future

Will be difficult to move Thaniya Plaza to Vietnam or Myanmar.

Myanmar may be difficult, but many see those Vietnamese girls as absolutely stunning. Perhaps the sexiest in SEA. The Japanese men can easily make due with eager Viet girls. No worries.

Edited December 5, 2013 by PaullyW

[alant]

Tomorrows headline;

THAILAND TO BE ASEAN HUB FOR JAPANESE INVESTMENTS AND MANUFACTURE.

[PaullyW]

Tomorrows headline;

THAILAND TO BE ASEAN HUB FOR JAPANESE INVESTMENTS AND MANUFACTURE.

And maybe announced by the TAT, no less.

[Ricardo]

The only thing that will get the attention of the rich families running this country is losing their wealth.

The real "Hi-So" families do not keep their wealth inside of Thailand. They are all prepared to jump ship if the need arises.

I've been told that the B.V.I. is popular, with Amply-Rich families ?

Personally I'm currently still happy with the Channel Islands !

[EyesWideOpen]

Not unexpected. Would be interesting to see if countries such as Japan shift out of Thailand due to the lapdog

status of Thailand with regards to China. If so, that is going to cost Thailand big time. If you are close friends with

a bully, people tend to avoid you...... I suspect Cambodia, Myanmar, and Vietnam are rubbing their hands with

glee... And yes, Vietnam girls are stunning. The Japanese mid level workers will be fighting to be posted

there for work. :-)

[noitom]

The Japanese are enjoying the good life of private Japanese clubs in Thailand, cheap booze and sex, and the profits skimmed out of low wages to Thai workers. The big salarymen assigned to tours in Thailand love it. They have private Japanese schools, private imported teachers, foods, whiskies and all the cheap Thai sex they can bone up for. They are totally detached from everyday life in Thailand and live their exclusionary life. If they continue to reinvest in Thailand and trust the Thai promises, they are fools.

[NongKhaiKid]

And if that happens, bye bye civilized Thailand, Hello again 3rd world country

Or forgot to mention, bankrupted government

Oh yes, bankrupted government but many pockets lined.

[silent]

A lot of the multinationals in marketing, logistics and supply left after the last round of protests, it will a tragedy if manufacturing and industry started pulling out. It will all make Singapore and Malaysia very happy.

Wouldn't it be something if anticipating these reactions after trying to slip through an amnesty bill, it turned out that our Mr. "Thanksin" has been investing everywhere around the ASEAN, while being the alleged orchestrator of all the unrest anyway.

"Let me back home, or see what I can still do", with just a little gentle persuasion and red flag waving to equally predictable puppets as seen all over the world now.

Too diabolically clever for a mastermind with a lot of time on his hands though

[Publicus]

Tomorrows headline;

THAILAND TO BE ASEAN HUB FOR JAPANESE INVESTMENTS AND MANUFACTURE.

Yesterday's headline, I'm pretty sure.

I know I saw it but it wasn't tomorrow that I saw it.

All the same rest assured your point is well taken.

Edited December 5, 2013 by Publicus

[Alwyn]

Amusing stuff from japan... Here they are poisoning the pacific ocean for a lifetime and doing nothing about it and they whine about political unrest in Thailand. Priorities need shifting methinks

[belg]

yes that can be a problem

of your money & company being safe or not in a banana republic

[casindonet]

It's not only the japanese who are worried....everyone & anyone who has investment in thailand are worried. countries like vietnam, myanmar, malaysia a good place relocate.

Sent from my GT-I9200 using Thaivisa Connect Thailand mobile app

[stickyrice2000]

The investors are looking at the cost more than the political instability. They are targeting cheaper labors, but the problems are the infrastructure and inadequate experiences at the neighboring countries.

[Asiantravel]

The investors are looking at the cost more than the political instability. They are targeting cheaper labors, but the problems are the infrastructure and inadequate experiences at the neighboring countries.

But most other countries not subsidising the public to encourage the purchase of more cars. What's the true benefit of better infrastructure if it's congested ? And if a worker in Burma or Vietnam shows a keen attitude to learn skills and learn a new language, at a lower cost than Thailand, any lack of experience compared to Thai workers will be no more than a temporary blip.

[paddyjenkins]

I would think all investors should be worried, not just the Japanese. The protests are disruptive, but that is not really the main issue. The main issue is the apparent lack of rule of law and the possibility that an elected government can so easily be replaced by a mob, with the police and army literally standing back and offering zero resistance. If this happened then could this new form of government be trusted not to renege on previous agreements, or to not become even more xenophobic than currently, or to attack foreign investments such as property to appease popular sentiment, or just fail to protect foreign business interests? Who is to say what a mob would do in a position of power. So unlike previous instability in Thailand, this new phase threatens to usher in an era of much higher uncertainty and undermines any adherence to the principles of law and democracy that Thailand may previously have had.

[bkkfaranguy]

It's not only the japanese who are worried....everyone & anyone who has investment in thailand are worried. countries like vietnam, myanmar, malaysia a good place relocate.

Sent from my GT-I9200 using Thaivisa Connect Thailand mobile app

Yes and don't forget about the Philippines, both Korea and Japan are starting to invest heavily there! They have a cheap work force, an abundance of workers and they have just became less corrupt than Thailand in the most recent survey.

[Maggusoil]

The only thing that will get the attention of the rich families running this country is losing their wealth.

. . . . and status

however, no answer of substance around

its not how it works

Good people doing good things is the only answer

[ttthailand]

Unstable government, flooding, minute decisions on immigration and other important matters, crime, higher wages..... The list goes on and on. Unless someone responsible takes control the gravy train will come to a stop. Too many other countries with open arms.

[wileycoyote]

Still strong bonds between Japan & Thailand,the future is bright

[DrTuner]

There's no need for a single large problem in order for investors to suddenly disappear. A long string of smaller problems will do, slowly but steadily the board rooms will get the message 'unstable' and next investment decisions will be made with that in mind. When factories need refurbishing, why not move them at the same time. When deciding upon new factories, stability is important. Old investments will be milked out, but how long will that carry .. less than a decade.

Thailand needs to get it's s**t together ASAP.

[VegasVic]

There's no need for a single large problem in order for investors to suddenly disappear. A long string of smaller problems will do, slowly but steadily the board rooms will get the message 'unstable' and next investment decisions will be made with that in mind. When factories need refurbishing, why not move them at the same time. When deciding upon new factories, stability is important. Old investments will be milked out, but how long will that carry .. less than a decade.

Thailand needs to get it's s**t together ASAP.

You are correct, and this Suthep nonsense is just the latest in a string of man made disasters (forget about the tsunami and the floods) that make foreign governments and large private investors more and more leery about Thailand. Investors like stability and certainty, these are certainly two things that Thailand has had a hard time delivering these last few years and if these riots were to continue without a strong government crackdown then that would just send one more message to the international community that Thailand lacks stability and governmental control. As far as its neighbors taking business away from Thailand, Vietnam has already had a massive growth spurt and is encountering what all emerging fast growing economies find -inflation, Laos and Cambodia do not have the infrustructure in place and have other ancilary problems, Malaysias labor costs are rising and they also have the muslim problem, the biggest threat to Thailand over the next 5-10 years is most definately BURMA. Burma has natural resources and a cheap labor force that is very motivated to improve its standard of living, it is just a matter of making sure there is a stable pro growth government in place and we will see the infrastructure improve at warp speed. Ms Shinawatra and the military high command have some very tough decisions to make over the coming days and it may very well come down to a swift and brutal end to these protests in order to send a message that Thailand is a place that will no longer put up with this type a mass criminal nonsense every 3-4 years.

[SheungWan]

I would think all investors should be worried, not just the Japanese. The protests are disruptive, but that is not really the main issue. The main issue is the apparent lack of rule of law and the possibility that an elected government can so easily be replaced by a mob, with the police and army literally standing back and offering zero resistance. If this happened then could this new form of government be trusted not to renege on previous agreements, or to not become even more xenophobic than currently, or to attack foreign investments such as property to appease popular sentiment, or just fail to protect foreign business interests? Who is to say what a mob would do in a position of power. So unlike previous instability in Thailand, this new phase threatens to usher in an era of much higher uncertainty and undermines any adherence to the principles of law and democracy that Thailand may previously have had.

Investment was neither shaken by the violence instigated by Thaksin in 2010 nor the flapping in 2013. Japanese investment more concerned with the shambolic response to the floods and infrastructure planning (lack of) to protect continuity of industrial production. Japanese investment might raise eyebrows at a government run from afar by a wanted criminal exacting a rental overhead and not averse to utilising mob rule through the reds, but their investment decisions have been made on a longer term basis and so far discounted both Malaysia and Vietnam as practical alternatives. Maybe they will switch but until they do it is mostly business as usual.