Little risk in Thailand business despite coup: Japan auto boss
May 27, 2014 00:00
TOKYO - There is little risk to investing in Thailand despite last week's military coup, the head of Japan's carmaking sector said Tuesday, as vehicle production returns to normal in the politically divided kingdom.
Japanese automakers with major operations in Thailand watched nervously as the army seized power and declared martial law, the latest chapter in years of political turmoil.
Japan is Thailand's single biggest overseas investor and the nation has become increasingly important for Japanese firms, which shifted operations from home to counter high wages and a strong yen and mitigate the effects of natural disasters on the supply chain.
"Thailand is where companies can invest with security," Honda chairman Fumihiko Ike told reporters during his first group interview as chief of the Japan Automobile Manufacturers Association.
"I personally don't think there are huge risks to the economy."