2012 Rainy Time of the Year News From Thailand

Online, October 13, 2012 (Newswire.com) - Thailands rainy season October 2012 , yet serious water damage has been avoided. In October 2011, Thailand sustained heavy raining for 2 several weeks. This eventually left the country in a condition of calamity with deaths reaching 295. Including the main city, Bangkok, wasn't spared. The particular flooding which changed residential places in order to rivers is considered to be the most detrimental in half a hundred years that Thailand experienced.

The continual flooding in Thailand that began within July 2011 with heavy monsoon rains long lasting more than 90 days has prompted suppliers in the country to reevaluate the particular distribution of their particular production bases. Specifically, businesses are asking the viability regarding concentrating in growing markets that feature cheap labor considering that many such regions are also at risk of natural disasters. With one quarter with the world's external hard disks and a substantial number of auto parts being produced of Thailand, even smaller enterprises clustered in Thailand's industrial zones have expressed uncertainty about the advantages of agglomeration. (agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other)

However, 2011 has seen intensifying doubts about this agglomeration model as a result of unforeseen natural unfortunate occurances. This recent bout of floods is actually Thailand's worst during the last half century, and comes on the actual heels of nearby Japan's triple devastation in March - a massive 9.0 earthquake, the subsequent tsunami, and an ensuing nuclear crisis. The disaster's influence on the country's electronics, auto-manufacturing and high-tech sectors are far-reaching, as much from the global economy continues to be affected by the actual country's resulting vitality shortage and lessened outputs.

While Bangkok remains the country`s commercial as well as financial center, it's the seven large professional estates built in the central provinces regarding Pathum Thani as well as Ayutthaya - regions bombarded with one meter-plus floods for more than two weeks - which can be the foundation regarding Thailand`s manufacturing market.

These industrial locations were state-led developments that attracted investors with modern infrastructure, a extremely-skilled workforce, tax incentives, and the particular apparent advantages of industrial agglomeration. Beyond factors of profitability, the beautiful surroundings and chemical attraction for Thai culture are often cited as additional draws for foreign investors.

Despite pledges in the Thai government of 100 billion tical (US$3.24 billion) for brief-term reconstruction from the estates and 800 billion baht (All of us$24.79 million) for long-term flood management, international investors may not sufficiently satisfied.

"All of us appreciate the excellent efforts by the Thai government, yet expect further suitable measures as the specific situation changes," the Japan External Trade Organization has said of the government reassurances. There are currently 1,800 Japanese manufacturing facilities and representative workplaces in Thailand, 450 of that are factories directly affected by flooding in the industrial estates.