Korn, whose 15-delegate mission includes the governor of the Thai central bank and representatives of the Thai private sector, said he will address issues related to Thailand's Map Ta Phut industrial zone "in a straight forward manner."

He said he will explain that environmental and legal problems troubling industrial projects in the special zone in eastern Rayong Province are not a policy problem, but are issues related to interpretation of the Thai Constitution that requires a public hearing prior to approvals for any projects or activities that may have severe environmental and health impact on a community.

"We are trying to find a balance between industrial development and protection of the environment and social welfare of our citizens," Korn said, adding the situation is similar to what Japan went through during its own industrialization.

In September last year, a Thai court issued an injunction suspending dozens of industrial projects in the Map Ta Phut industrial zone after environmentalists and local residents complained the projects would aggravate pollution in the area and alleged that project permits approved by the government violated the Constitution.

Most of the suspended projects are refineries and petrochemical facilities owned by Thais but a few Japanese steel facilities were also affected.

The court ruling also hurt foreign investors' confidence and prompted the government to set up a special committee to look for a solution.

The government, Korn said, has been working "successfully" with the private sector to mitigate the impact of the injunction.

A few dozen projects have been allowed recently to continue construction, he added.

"There are about nine or 10 projects that face impact because investments have already been made...so there's no denial of the fact that there are some projects that will suffer as a result. But it's going to be limited to only a few," the finance minister said.

New investors have to wait for the government to come up with clear regulations on public hearings and an independent body on environment and health, the minister indicated.

Korn added a new approval process for any industrial project considered to have a severe impact on health and the environment will take no longer than 12 months, consistent with international standards.

The minister said he will also inform Japanese investors of Thailand's ongoing efforts to improve its competitiveness by amending its customs law for better transparency in customs procedures and relaxing rules and regulations to attract more Japanese companies to move their regional offices and headquarters to Thailand.

Korn and the Thai delegation will meet high-level representatives from the Japan Business Federation and others while in Japan.