JETRO concerned about Map Ta Phut project suspension

BANGKOK, Jan 6 (TNA) – The Japan External Trade Organization (JETRO) is concerned about impasse in Thailand’s largest industrial estate, Map Ta Phut in Rayong, saying the government’s timeframe to settle the problem within four to five months is too long for investors to wait, Industry Minister Charnchai Chairungruang said on Wednesday.

After meeting Munenori Yamada, president of Bangkok-based JETRO, Mr Charnchai said Mr Yamada told him that the problem should be resolved sooner, otherwise it can damage the confidence of investment fund resources and financial institutes, which may cancel loans to several Thai-Japan investment projects.

The Ministry of Industry clarified to JETRO about suspension of 65 Map Ta Phut industrial projects.

Thai Bankers’ Association president Apisak Tantivorawong said that so far no financial institutions have cancelled loans granted to investment projects in Map Ta Phut. However, if any loans to those projects are cancelled, Thailand’s state-owned financial institutions such as Krung Thai Bank are ready to support them, Mr Apisak said.

Meanwhile, Finance Minister Korn Chatikavanij pledged to oversee the problem and find financial sources for Map Ta Phut industrial projects. Labour minister Paitoon Kaewthong said the ministry will provide assistance to the unemployed affected by suspension of the industrial projects.

Mr Charnchai gave assurances that Japanese investors are still confident about the Thai economy and will continue their businesses in Thailand.

In September a Central Administrative Court injunction suspended 76 industrial projects at Map Ta Phut due to environmental concerns. The injunction followed complaints from residents and environmental groups that state agencies had failed to issue proper operating licences for the industrial projects.

The Supreme Administrative Court later allowed 11 of the 76 projects to continue operating, with 65 to remain shuttered until they comply with the environmental and health requirements of Section 67 of the 2007 Constitution. (TNA)