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Manufacturing Production Index drops 3.5% in June

The global economic slowdown has lowered Thailand’s Manufacturing Production Index (MPI) by 3.5 percent last month with hard disk drives and electronics parts production hardest hit, according to the Industry Ministry.
Somchai Harnhirun, director of the Office of Industrial Economics (OIE), said the MPI in Q2 slipped 5.2 percent and the MPI in the first half of the year was at 175.71, a reduction of 1.1 percent.
Manufacturing of hard disk drives and electronics parts plunged by 17.59 percent and 15.53 percent respectively last month while the manufacturing rate was at 64.09 percent.
The OIE, in recognition of the global and Thai economic downturn, has adjusted this year’s MPI growth target 0.5-1.0 percent with a prediction that the industrial gross domestic product will expand by 3-4 percent this year.
Thailand’s industrial exports in the first half of the year were 3.95 percent higher and the OIE forecasted a 6 percent growth for the entire year.
Manufacturing in major industrial sectors was favourable last month with 12.3 percent growth year-on-year in the auto industry, with a predicted total production of 2.55 million units or a 4.62 percent increase this year.
Of the total auto production, 1.55 million units were for local distribution, an increase of 8.73 percent, and 1 million units were slated for export, representing a 2.25 percent increase.
Iron and steel production expanded by 5 percent year-on-year but it is predicted that the demand for iron will be less in the second half of the year owing to the economic and construction slowdown.
Food industrial production plunged by 20.2 percent and exports dropped by 8.8 percent and it is predicted that manufacturing and exports of food products this year will be 5.6 percent lower than last year. (MCOT)


Networking highlighted at July German chamber meeting

(L to R) Marius Mehner, Consultancy Services Manager GTCC, Niels Klindt, Junior Economist DE International, Horst Müller and Elmar Kleiner, OIA founder & MD, Office for Interior & Architecture Co., Ltd.

Horst Muller
With its directorate out of town, the German-Thai Chamber of Commerce put the focus on networking for its July meeting at the Moon River Pub.
Marius Mehner and Niels Klindt of DE International stood in for chamber managers, who were in Germany during the July 12 “stammtisch.” Embassy consul Paul Strunk attended.
The meeting didn’t feature a long presentation, with only architect Elmar Kleiner of Jomtien Beach announcing the completion of the Häfele-Design Center in Phuket which was the first Thai structure to earn a German designation for sustainable building.
Members spent the evening relaxing, networking, dining and enjoying the pub’s Cross Colours house band.
The next meeting will be held Sept. 13 at the same location.

(L to R) Danilo Becker, Resort Manager of Thai Garden Resort and Carl-Fabian Arp, MD, Thai-Ger Line Golf.

(L to R) Rene Pisters, GM of Thai Garden Resort, Robert Vogel, Consultant, Efaflex Tor-und Sicherheitssysteme GmbH & Co. KG, and Sanya Jennapapankit, MD, Qwerty Co., Ltd.


Iran buying 250,000 tonnes of Thai rice

Iran has agreed to buy 250,000 tonnes of Thai rice under a government-to-government contract, according to Deputy Prime Minister/Commerce Minister Niwatthamrong Boonsongpaisan.
The commerce minister said the agreement was reached during his visit to Iran last month. Both countries approved the government-to-government rice contract and the first batch of 250,000 tonnes of rice will be delivered in October.
He added that Iran wants additional Thai rice of at least 750,000 tonnes. It is expected that Iran will purchase at least 500,000 tonnes of Thai rice next year.
He said Thailand plans to negotiate rice deals with other countries including China, Malaysia, Indonesia and the Middle East.
Brushing aside concerns over tainted rice, the Thai minister assured Iran that Thai rice is up to standard and rice quality checks are allowed before delivery to ensure quality.
This year, Thailand has so far delivered three million tonnes of rice under government-to-government contracts, the minister added.
Niwatthamrong said Thailand’s rice export target this year remains unchanged at 8.5 million tonnes, although exports of only six million tonnes rice is estimated by commercial rice exporters. (MCOT)


Export volume in June decreased 3.38 percent

Thailand’s export volume in June declined for the second consecutive month, registering a 3.38 percent fall, year-on-year, or Bt19 billion in value.
Permanent Secretary for Commerce Vatchari Vimooktayon said the reduction was from the economic slowdown in the Eurozone, the United States and Japan, resulting in a drop in exports to Thailand’s main traditional markets of 8.4 percent and China by 16.7 percent.
Other factors included the fact that the Thai prawn industry is having problems with Early Mortality Syndrome (EMS) causing a shrimp production decrease of 40 percent, insufficient to supply the country’s trading partners.
Thailand’s overall agricultural and agricultural industry exports fell 7.1 percent, including frozen and processed prawns, rice, and rubber.
However, Ms Vatchari said the country’s exports from January-June this year reached US$113 billion in value, up 0.95 percent year-on-year.
She said Thailand’s imports last month increased 3.01 percent, or US$21 billion in value, mostly capital goods, machinery and equipment. Overall, imports in the first half of this year reached US$129 billion, a 4.32-percent increase, resulting in a balance of trade deficit at US$1.9 billion in June alone and US$15.7 billion from January-June.
Meanwhile, Srirat Rastapana, International Trade Promotion Department director-general, said Thai exports this year might not reach their original target at 7.5 percent but instead might only amount to 6-6.5 percent due to the global slowdown.
She said Commerce Ministry is to continue to promote Thai exports even though many parties estimated the country’s export figure this year to grow at 4-5 percent. The ministry will revise the figure again in September. (MCOT)


Bt20 million in death benefits for those dying from chemicals in packaged rice

Thai rice traders have offered Bt20 million in compensation for any consumer killed by methyl bromide in packaged rice - an attempt to restore confidence in the safety of locally-produced grains.
The Thai Rice Packers Association (TRPA) has cooperated with 128 companies producing more than 800 brands of packaged rice to organize quarterly lab tests, starting August 1.
The lab tests will be conducted for a year to ensure safety of Thai packaged rice amid public concern on excessive chemical use to control insect infestation.
The Foundation for Consumers recently reported chemical residues in some brands of packaged rice while the Commerce Ministry, which is encountering problem of oversupply of rice in its stocks, called on the public to be calm and gave assurances that packaged rice in Thailand is safe to eat.
TRPA chairman Somkiat Makyathorn said he believed the lab tests and proposed compensation of Bt20 million would revive consumer confidence in the quality and safety of Thai packaged rice.
He said the TRPA’s original target for a 5 percent sales growth of packaged rice, at a total value of Bt30 billion, for this year will remain unchanged.
He admitted that the sales volume of packaged rice has decreased in the last two months with one household purchasing only two bags on average instead of the average three to five bags.
Consumers’ confidence in overseas markets remains unaffected, he said.
Starting January 1 next year, the Thai Food and Drug Administration requires Thai rice traders to have their products checked under the Good Manufacturing Practice (GMP) to ensure quality, he said.
Somkiat said packaged rice trader of Coco brand has recalled its product from the market after it was found to contain excessive chemical residues. (MCOT)


 
HEADLINES [click on headline to view story]]

Manufacturing Production Index drops 3.5% in June

Networking highlighted at July German chamber meeting

Iran buying 250,000 tonnes of Thai rice

Export volume in June decreased 3.38 percent

Bt20 million in death benefits for those dying from chemicals in packaged rice

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