Japanese tsunami takes local toll

The long term effects of the Japanese tsunami on Southeast Asian economies remain to be calculated
Tourism was the first of the region’s industries to be affected by the Japanese earthquake crisis.
Apex, a Vietnamese travel agency, said it had cancelled eight out of 10 tours scheduled for Japanese groups in the days following the tsunami, while the Cambodia Association of Travel agents announced that 20-30% of trips by Japanese clients had been suspended.
The Thailand-Japan Tourism Promotion Association confirmed similar cancellation rates in the aftermath of the mayhem.
Longer-term effects on other sectors are yet to be calculated. The impact of a possible Japanese recession and the country’s need to concentrate its resources to overcome the effects is expected to be mitigated with increased spending on reconstruction work.
Japan imports garments, tyres and seafood from Vietnam, as well as farm products, cereals, electrical devices and rubber products from Thailand. It is also a major importer of timber from Malaysia, where experts predict the level of Japanese imports will increase in the long-term.
The Cambodian garment industry is also fairly optimistic that exports to Japan will remain stable.
According to Moody’s Analytics, the world economy will feel the effects mainly through adjustments in financial markets, but impact on growth should be limited.