Japanese Firms May Seek Thai Government Support If Halted Projects Unresolved

Some Japanese companies are struggling financially as they must still bear contract costs related to projects at the Map Ta Phut industrial estate, even though construction is suspended, said Japan External Trade Organization President Munenori Yamada.

Japanese commercial banks and their parents can't provide financial help as they fear breaching Thai law, he told reporters.

"This is even worse than the airport closure and the unrest resulting from the Thai political uncertainty," Yamada said, referring to the shutdown by anti- government protesters of Bangkok's main airport for around 10 days in late 2008.

"More Japanese companies are interested in expanding their business in Thailand but it will be such a pity if this problem is an obstacle."

Yamada said the trade organization hasn't assessed how much financial aid they may need from the Thai government "as we believe that the situation won't fall that far."

Japanese firms expect a better roadmap will be released by Thai authorities soon, adding they need more details to be confident that their projects will be able to move ahead, Yamada said.

The trade organization and the Japanese Chamber of Commerce, representing Japanese firms in Thailand, have urged the Thai government to classify which business activity doesn't comply with the law, Yamada told reporters.