Japan, Thailand to jointly aid flooded businesses

BANGKOK (AP) — Thailand and its biggest foreign investor, Japan, agreed Wednesday to jointly help businesses of both countries damaged by major flooding in the Southeast Asian nation last year.

The measures include dispatching experts to damaged facilities, exempting import duties on machinery and parts, continuing to allow workers from closed Japanese-owned facilities in Thailand to work in Japan, and giving financial support to flood-affected Japanese companies in Thailand.

Japan's Trade and Industry Minister Yukio Edano discussed the initiatives during a visit with Thai Commerce Minister Kittirat Na-Ranong in Bangkok.

About 300 out of 1,200 Japanese companies formally registered in Thailand were affected by the country's worst flooding in half a century, according to the ministers. Sixty-five of Thailand's 77 provinces were affected by the monthslong flooding, which took more than 800 lives.

Economic damage was estimated at more than 200 billion baht ($6.3 billion). Especially hard hit were industrial estates near Bangkok, where many Japanese companies, including automakers such as Honda, have factories. Japanese companies complained they were not clearly warned of the risks as the floodwaters poured downstream from the north.

"The Japanese private sector intend to continue their investment in Thailand, but they are also keeping an eye on assistance and flood-prevention measures from the Thai government," Edano told reporters.

Kittirat said the Thai government planned to invest 35 billion baht ($1.1 billion) to flood-prevention schemes and to set up an insurance fund worth at least 50 billion baht ($1.57 billion) to help boost Japanese investors' confidence.