60% of large Japanese firms in Thailand see coronavirus impact: survey

17, Feb. 2020

Photo by Han Chenxu on Unsplash
Photo by Han Chenxu on Unsplash

BANGKOK, NNA – Sixty percent of large Japanese enterprises in Thailand see the outbreak of the coronavirus hurting their earnings, a Japanese business lobby, and a governmental body reported Friday.

That is the result of a survey that the Japanese Chamber of Commerce, Bangkok and Japan External Trade Organization conducted from Feb.5 to 13. The survey tallied 40 multinational corporations – including 21 manufacturers and 19 non-manufacturers -- out of the 47 businesses.

The 40 consists of global firms like major trading houses and manufacturers, according to the local chamber.

Four companies, or 10 percent, of the 40 respondents estimated that the new coronavirus epidemic would affect their pre-tax profits -- operating profits in addition to incomes from dividend and others -- by more than 5 percent, while 20 firms, or 50 percent of them, expect some impact. Nine responded that they have no idea.

With multiple answers allowed, 24 respondents cited a decrease in sales due to a slowdown in the global economy as the reason for their estimates of the coronavirus impact, while 22 companies see the difficulty in procuring parts, material and products from China and 10 expect decline in export of such items to China.

A decrease in sales of their finished products in China whose economy is slowing down is also a reason for nine respondents, while ten companies see stagnant Thai consumption hit by a drop in Chinese tourists.

Atsushi Taketani, president of JETRO Bangkok office, said he expects small- and mid-sized businesses in Thailand being affected more by the coronavirus breakout than large companies surveyed.