Japan Bristles at Timeline for Thai Flood Recovery

Federation of Thai Industries Chairman Payungsak Chartsutthipol says some industries, including high-tech electronics and automotive plants, may need up to 10 months to fully recover from the massive floods sweeping through Thailand.

Payungsak makes the comment after meeting with officials from the Japanese Chamber of Commerce, who say the Thai government needs to put all efforts into lowering the floodwaters by no later than mid-November.

Honda Brio production indefinitely suspended by flooding.

The Bangkok Post quotes Chamber Director Shigekazu Shibata as saying some of the organization’s 1,370 members are directly affected by the flooding, and many more face shortages of materials and supplies.

“The floodwater is too high and companies cannot move the machinery out of their factories,” he says.

The newspaper reports CEO Setsuo Iuchi of the Japan External Trade Organization for the Association of Southeast Asian Nations and South Asia as saying if the floods persist, Japanese investors may hesitate to do business in Thailand.

“Natural disaster is one of the factors of concern for foreign investors,” he says.

“It is still too early to say at the moment that this year's flooding will prompt Japanese investors to think Thailand is a risky place. It depends on how long until the flooding is contained and how the government treats Japanese investors.”

Meanwhile, Toyota and Honda extend suspension of production because of the flooding.

Toyota says operations at its three Thailand plants now are suspended until at least Oct. 22. The auto maker’s factories have not been inundated, but many of its suppliers are under water and it can’t get the needed parts.

Toyota says it is cutting its spare-parts prices 30% to help flood-affected customers.

Honda’s plant in the Rojana Industrial Park in the devastated Ayutthaya district remains under water, and the company tells The Nation newspaper it is shut down indefinitely.

“We still don't know when the company will be able to resume production at the Rojana plant, depending on the flood situation in the coming weeks and how long until the water recedes,” says Executive Vice President Pitak Pruittisarikorn.

“At present, we can't estimate the impact on our production and sales targets this year.”