TOKYO - Roughly 40 percent of Japanese firms say they would move factories overseas if the yen stays at its current high of around 85 to the dollar, according to an official survey released Friday.

The yen has recently traded near a 15-year-high against the dollar, and a nine-year high against the euro, making Japanese exports less competitive overseas and shrinking companies' repatriated earnings.

In the survey of 200 Japanese companies, conducted by the ministry of economy, trade and industry, 61 percent of firms said they would expand overseas production at existing plants if the yen stayed high.

The foreign exchange rate "could accelerate the hollowing out of domestic industries," the ministry said in the survey, carried out from August 11 to 24.

Sub-contractors have faced tough pressure to slash costs, while they worry about losing contracts to overseas rivals.

Prime Minister Naoto Kan and his team have been criticised for failing to offer concrete steps to lower the yen's value, as their attempts to talk the yen down through verbal hints at intervention have proved unsuccessful.

The ministry survey said the current yen strength would lead to reduced profits for more than 60 percent of manufacturers.

Small sub-contractors have been hit hardest. More than 80 percent of them expected their profits to fall and 47 percent fear a "serious decline" in profits if the dollar stays around 85 yen.

In addition, a weak South Korean won, which makes Korean products relatively cheaper, has also further pressured Japanese firms, the survey said.