A report states that a number of Japanese companies with manufacturing operations in Thailand are set to relocate out of the country after the beating they took from last year’s floods.
According to a survey, almost one in 10 Japanese companies are set to hightail it out of the Kingdom, the AFP reports. The survey, carried out by the Japanese Chamber of Commerce Bangkok, polled 1,345 companies, of which 366 firms responded.
The statistics have it that 8% of the manufacturers plan to relocate out of the country, while 85% say they will resume their business in the same place. Some companies say they will move, but within Thailand. While 72% of manufacturers were expected to resume their operations between last December and this month, a further 21% said they would restart sometime in April to May, and 6% in June or later.
Of those companies surveyed, electronics manufacturers were the hardest hit on the whole, with more than half directly affected by the disaster. For automakers, Honda was dealt the most severe blow, when its factory in Rojana Industrial Park, Ayutthaya was submerged in early October. The company has said it plans to resume vehicle production at the plant by the end of March.
The JCCB said that the companies that are resuming late have to wait for new machinery imported from Japan, and some are still waiting to see the Thai government’s flood prevention plan – the JCCB has urged the Thai government to speed up the implementation of a flood control plan.