Japanese investors worried about anti-government rally: JETRO

BANGKOK, June 25 (TNA) – Japanese investors are concerned about the
anti-government gathering in Thailand, but believe it has not yet affected investment confidence in the country, according to the Japan External Trade Organization (JETRO).

JETRO president Yoishi Kato said the ongoing political turmoil had not yet
eroded confidence among Japanese investors in Thailand since they are
long-term investors.

However, the Japanese media is paying close attention to the
anti-government rally at Government House in Thailand.

Should Thailand's cabinet be unable to work at Government House and should
the prime minister fail to liaise effectively with his deputies, Mr. Kato
said, he believed it would affect exports and investment, which could have
repercussions on the economy.

Under democratic principles, the political gathering could be held, he
said, adding however that he hoped the Thai government would have policies
to manage the economy and society appropriately.

"The current political situation in Thailand looks better than that in
2006 when the mass rally by hundreds of thousands of people took place and
ended with a military coup," the JETRO chief said.

"We expect the ongoing rally by around 20,000 demonstrators at present
will not end like the incident in 2006," Mr. Kato said. "Otherwise, the
country will be pressed by the international community".

Mr. Kato said the number of Japanese investors in Thailand would not
decline if there was a cabinet reshuffle or a new election under the
democratic process.

Under the current economic situation, the JETRO chief stated, Japanese
investors see Thailand as a better investment risk than Vietnam where
inflation is still very high and the cost of labour had increased
considerably.

He conceded that Japanese investors have been paying more attention to
investing in India, but they have no plan to shift their investment to the
country. (TNA)