Thailand suffers trade deficit against export growth

Thailand’s trade deficit for the first 11 months of this year was posted at USS15.7 billion despite growth in exports, the Commerce Ministry announced today.
Srirat Rastapana, director general of the International Trade Promotion Department, said this year’s total exports will be higher than 5 percent if the export volume in lucrative December is more than $20 billion.
If not, export growth will be 4-5 percent at the most, she said, predicting next year’s exports to rise at not less than 8-9 percent.
In November alone, Srirat said, Thailand’s export value was over $19.6 billion, a 26.86 percent increase from the same period of last year.
The percentage growth of exports by country was reported as follows: Japan 13.5 percent, European Union (15 countries) 30 percent, the US 22 percent, Southeast Asian region 18.6 percent, India 45.2 percent, Hong Kong 85.2 percent, Australia 73 percent, Africa 42 percent and the Middle East 57.6 percent.
Southeast Asia, India and Hong Kong are classified as high potential markets for Thai exports.
The export of electrical appliances was increased by 1.3 percent, automotive spare parts 25.5 percent, construction materials 22.4 percent and jewelry and accessories 8 percent.
Exports in the agricultural sector declined 10.9 percent, especially rice, rubber, frozen shrimp and processed food, while frozen seafood, canned and processed food, frozen and processed chicken, and tapioca products enjoyed significant growth.
Imports in November totaled $21 billion, higher in every sector, especially in capital goods (62.5 percent more), automotive and transport equipment (74.7 percent higher), automotive spare parts (94.1 percent higher) and sedans (51.7 percent). (MCOT)

 

Bids for investment incentives rocket to Bt1 trillion

Applications for investment privileges in Thailand jumped to a historic volume of Bt1 trillion during Jan 1-Dec 20 this year, according to the Industry Ministry.
Industry Minister Prasert Boonchaisuk said most of the 2,180 applied projects involved infrastructure, energy, automotive spare parts and processed agricultural products.
Foreign investors, especially the Japanese, will continue to expand their investments next year and applications for investment privileges should be as high as this year, he said.
The Board of Investment (BoI), chaired by Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong, last week approved 32 projects with a total investment of Bt108 billion (US$36 billion).
Most of the newly-applied projects are related to automotive spare parts and tires which have grown rapidly thanks to the government’s tax exemption for first-car buyers, alternative energy and air cargo service.
The BoI Board of Directors has approved a new investment promotion policy which should be implemented in the next 6-7 months after hearings with all related sectors, Prasert said.
The minister said listed companies in the Stock Exchange of Thailand (SET) and the SET Market for Alternative Investment have been told to gradually reduce their employment of unskilled migrant workers in the next two years by laying them off at the rate of 25 percent every six months.
Investment privileges in three southern border provinces will be extended for two years in an attempt to assist investors whose businesses have been affected by the insurgency, Prasert said.
BoI Secretary General Udom Wongviwatchai said the measure requiring Thai employers to lay off migrant workers within two years was aimed at boosting local employment.
A total of 101 companies in Thailand legally hire about 9,000 migrant workers, mostly in the textile industry. (MCOT)

Trade robust at Thai-Lao border

Border trade with the Lao PDR in Thailand’s northeastern province of Nakhon Phanom was vigorous at the start of the New Year festival, with a large number of Lao having crossed the border to buy goods on the Thai side.
Markets at the Thai-Lao border in Nakhon Phanom were vigorous as Lao traders came to buy and order goods for resale in their hometowns during the New Year festival. They also brought farm products to sell on the Thai side.
As a result, exports at the Thai-Lao border in Nakhon Phanom doubled from 4-5 million baht to 10 million baht.
All agencies concerned were instructed to set up checkpoints to prevent smuggling illegal items along the border during the New Year. (MCOT)
 

Train services nationwide under improvement: SRT

Train services nationwide will be upgraded in a 2 and 1/2 year improvement program beginning early next year with a planned completion date of August 2015, for track and facilities improvement, according to the State Railway of Thailand (SRT).
SRT public relations chief, Nual-anong Wongchan, said the agency has received Bt17.6 billion to improve its infrastructure, including track bed, tracks and signals improvement. Railway bridges will be standardized to reach international standards.
The budget covers construction of dual tracks between Nakhon Pathom-Hua Hin; Lopburi-Nakhon Sawan and Bua Yai junction-Khon Kaen.
SRT also plans to purchase new diesel locomotives to replace old ones, she said.
Nual-anong said that the improvement work will begin early next year and will be completed by August 2015. Construction may affect railway services during the construction period.
She said that if the work is completed as planned, the rail tracks would be stronger and the train would be safer in the future. Trains could use higher speeds and build confidence among the passengers in terms of punctuality and could shorten travel time. (MCOT)

Thai automotive manufacturers jubilant as car sales break record

Thailand made another historic record with skyrocketing sales of 1.3 million cars in the first 11 months of this year, an automotive industrialist said last week.
Vudhigorn Suriyachantananond, senior vice president of Toyota Motor Thailand, said the newest record, representing a 74.7 percent increase compared to the corresponding period of last year, is broken down into 601,000 sedans, a 79.7 percent increase, and 690,000 cars for commercial purposes, a 70.5 percent increase. Cars for commercial purposes are mainly pick-up trucks.
The car sales volume in November alone reached 148,000 units, representing a great leap - by 477 percent - the highest sales volume per month in history. The sales of sedans (77,700 units) were five times higher and cars for commercial purposes (70,500 units) were four times higher than in November last year.
During the Thailand Motor Show in Bangkok early this month, consumers reserved more than 85,000 sedans and vehicles for commercial purposes. (MCOT)