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TMCNet: Japan Thailand Business UPDATE1

[March 07, 2012]

Japan Thailand Business UPDATE1

(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, March 7 -- (Kyodo) _ (EDS: CLARIFYING QUOTES. ADDING INFO) Visiting Thai Prime Minister Yingluck Shinawatra on Wednesday called for the strengthening of economic ties with Japan as Thailand recovers from massive flooding last year.

"The Thai government is determined to facilitate the business of Thai and Japanese enterprises," she said in a speech at a business gathering in Tokyo, assuring Japanese businesses of Thailand's readiness to remain a strong economic partner.

"The confidence of the business community is indispensable for the post-flood reconstruction of our economy," she said.

The Thai prime minister arrived in Japan on Tuesday. The primary purpose of her trip is to restore investor confidence after the flooding in Thailand disrupted supply chains and crippled the output of Japanese manufacturers for months, dealing a heavy blow to the companies that were just starting to recover from the devastation of the March 2011 earthquake and tsunami in northeastern Japan.

"It is particularly important to initiate and expand cooperation between Thai and Japanese small and medium-sized enterprises to build strong supply chains and stimulate consumption at all levels to achieve sustainable, inclusive and balanced growth," Yingluck said.

Responding to calls for measures to prevent a recurrence of the disruption, the Thai government recently approved 350 billion baht for long-term flood management and another 18 billion baht for preventive measures, such as building dykes and clearing floodways.

Tadashi Okamura, chairman of the Japan Chamber of Commerce and Industry, said at the business networking session, "Through the Thai flooding, it became clear that Japan and Thailand have a close-knit economic system, and we reaffirmed Thailand is very important to Japan." In a meeting with Yingluck ahead of the gathering, Okamura urged the Thai government to implement water-management measures and enhance reinsurance coverage as well as the finance system for small businesses, to which Yingluck responded positively, according to the JCCI.

Over 30 leaders of auto parts manufacturers, electronics makers and other businesses from Thailand took part in the session with Japanese business officials.

(c) 2012 Kyodo News International, Inc.

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