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)
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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.
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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)
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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)
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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)
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