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Pilot project aims to make Thailand ‘Detroit of the East’, ‘Kitchen of the World’ and world-class fashion hub

IEA plans establishment of ‘halal’ industrial estate

Fair Properties opens 2nd branch on Tappraya road

“One Village, One Product” scheme to go global

Inflation rises slightly in April

Rice exports down in volume, but up nearly 9% in value

Interest rates standing close to negative territory

MOC wants Ratchaburi Province to spearhead Thai-Myanmar trade area

More palm oil production promoted for bio-diesel to reduce oil imports

Phuket pawnshop business soars due to SARS

Czechoslovakia keen on economic partnership with Thailand

PM promises the public 1 million cheap computers

Report by World Bank projects Thailand’s GDP growth to slow to 4.5% in 2003

BCCT Eastern Seaboard Networking Evening joins with Travel Clinic

Pilot project aims to make Thailand ‘Detroit of the East’, ‘Kitchen of the World’ and world-class fashion hub

As part of a three year plan, The Ministry of Industry is forging ahead with a project to enlist 150 companies from three industrial sectors - fabrics, food and automobile components - in a pilot cluster development project proposed by Harvard economist Michael E. Porter.

Sumonman Kalayasiri, Director-General of the Department of Industrial Promotion explained, "The project is intended to allow small and medium-sized enterprises (SMEs) to develop their potential by forming alliances and build up networks both at home and abroad under the slogan "Cluster together" - to bring Thai industry into the international arena."

"A pilot project has begun on the fabric industry in Chaiyaphum Province, which has been well received by companies in the area," Mrs. Sumonman said. Both the government and local authorities hope to boost Thailand’s fabric and clothing industries, transforming Thailand into a world-class fashion hub.

The automobile components cluster will group together 50 members in Bangkok and its surrounding provinces, in line with the government’s policy of turning Thailand into the ‘Detroit of Asia’.

The food processing cluster will group 100 members in the central region and surrounding provinces, in recognition of the food industry as one of Thailand’s core industrial sectors which creates added value due to its high use of domestically-sourced raw materials. The government wants to develop Thailand’s food and agriculture sectors into the ‘Kitchen of the World’. (TNA)


IEA plans establishment of ‘halal’ industrial estate

The Industrial Estates Authority of Thailand (IEA) is driving forward with plans to establish an industrial estate for producers of ‘halal’ food for the Middle Eastern market within the next year, pinning its hopes on the estate earning Thailand no less than 1 billion baht in export revenue each year. Halal food for Muslim consumers requires special processing techniques.

Anchalee Chavanich, director of the Industrial Estates Authority of Thailand said, "Studies on the project by Prince of Songkhla University will be completed within the next four months, and we would like to see the halal estate should be up and running within the year."

"The estate, the establishment of which forms part of a wider plan to boost the potential of Thailand’s industrial competitiveness, would be located on 900 rai of land in the largely Muslim southern province of Pattani," Anchalee said.

>From these beginnings, the project would be expanded to another 12 locations, growing eventually into a fully-fledged industrial estate. Producers setting up in the estate would be given tax concessions and other incentives, with the aim of encouraging foreign investors.

The IEA is also pushing for the establishment of a national industrial estate in the future to link all industries and industrial estates across the country. The aim is to coordinate management of production costs, create added value for products, and aid in the search for new markets. (TNA)


Fair Properties opens 2nd branch on Tappraya road

Fair Properties a privately owned real estate company, has opened a new branch in Building B of the View Talay condominium on Tappraya Road.

Fair Properties has been widely accepted by both local and foreign clients in Pattaya as one of the most outstanding real estate companies on the Eastern Seaboard. They are known to be very service minded and reliable in their dealings.

The company’s management team is confident that the branch, situated not very far from the main office, would be able to serve the rapidly growing needs of the people in Pattaya and the Eastern Seaboard region. For more details about their services please call the experts at Fair Properties. Tel. 038-303418, 038 252 260-1


“One Village, One Product” scheme to go global

The Ministry of Commerce is preparing agreements with department stores and petrol stations across Thailand to distribute products under the government’s flagship One Village, One Product scheme; while liaising with a supermarket giant Tesco Lotus and Thai restaurants abroad to sell the products overseas.

Karun Kittisathaporn, permanent secretary for commerce and chair of the marketing sub-committee, said that the project could only be successful if all agencies worked together, with the Ministry of Commerce taking responsibility for domestic and foreign marketing.

"The ministry will focus on raising the standard of local products to export quality, but local producers will have to gain added value from their products for the scheme to be considered a success. We are planning to hire designers to train local producers to modify their products to meet world market demand, although the products will continue to focus on the use of local knowledge," Karun said.

The Ministry plans to establish outlets for the products, beginning with designated corners in department stores and petrol stations across the country, as well as at the Thailand Export Mart and Chatuchak Weekend Market, to allow foreigners a chance to purchase the products.

Karun said that the Ministry of Commerce has asked about 20 Thai restaurants abroad to promote the One Village, One Product goods in Europe; while Tesco-Lotus has also agreed to market the products in Tesco stores in other countries. (TNA)


Inflation rises slightly in April

Latest figures show the country’s inflation rate in April was 0.4 percentage points higher than in March and 1.6 percentage points higher than it was in a year ago on April of 2002 due to rising domestic consumption which increased prices of food and beverages.

The Commerce Ministry’s permanent secretary Karun Kittisataporn said this will be only a short-term concern and that the country’s inflation rate for this year would be about 1.5-2.0 percent as previously projected.

Karun said, "The present inflation rate confirms that Thailand is unlikely to encounter deflationary pressure as feared."

The ministry conducted a survey of 326 items of goods and services in order to determine the consumer price index in April. The country’s average inflation rate during the first four months of this year was 1.8 percent over the same period last year.

Consumer products costing more in April were jasmine rice, fresh chicken, vegetables and fruits, while those that cost less included gasoline, both diesel and benzene, and residential rents.

The non-food products’ consumer price index stood at 104.4 in April, the same rate as that of March, but was 0.2 percentage points higher than the same month of last year. (TNA)


Rice exports down in volume, but up nearly 9% in value

WTO open market policy pushes rice imports up 50%

Thailand’s rice exports for the first quarter of this year fell by 10.1 percent, but grew in value by 8.8 percent according to a report published by the Department of Foreign Trade.

The latest figures show that in March Thailand exported 484,000 tons of rice, worth around 5.28 billion baht (USD123 million), down 10.4 percent in volume from February figures, and 0.6-0.8 percent in term of value.

While statistics for April are still being prepared, it is thought that rice exports will be down. The continued increase in the price of Thai rice has meant that foreign companies are turning to other countries where rice remains cheap for their rice orders.

The war in Iraq caused a drop in rice exports to the Middle East and the large number of public holidays in April will also affect figures.

Regarding imports, this year Thailand was forced to open up its rice import markets under the World Trade Organization (WTO) agreement, and first quarter rice imports are already up 50 percent on last year’s figures. (TNA)


Interest rates standing close to negative territory

The tumble in Thai interest rates shows no sign of stopping, spelling good news for loan extensions and liquidity in the financial system.

The assistant to the central bank governor Bandid Nijathaworn said, "The Bank of Thailand (BOT)’s easing up of financial restrictions has given commercial banks more leeway to reduce their interest rates, which in turn will allow commercial banks to extend more loans and reduce excess liquidity. At the same time, trends showed that the loan growth rate was likely to exceed the deposit growth rate, as the public is more interested in spending than in saving."

Returns on savings have shown a continual decline since the year 1999, with deposit rates at the end of March 2003 standing at 0.5 percent per annum; while the interest rate on loans has fallen to an unprecedented 5.2 percent.

However, the figures released by the central bank are pre-tax figures, and in fact mask the fact that interest rates are edging ever closer to negative territory. With taxation on deposit interest standing at 15 percent per annum, the true post-tax interest rate is about 0.04 percent. (TNA)


MOC wants Ratchaburi Province to spearhead Thai-Myanmar trade area

The Ministry of Commerce is working to boost the role of Ratchaburi Province as an area of trade between Thailand and Myanmar; while pushing for the opening of border checkpoints to facilitate mutual trade.

After leading a delegation to assess the trade and investment situation in Ratchaburi, Commerce Minister Adisai Bodharamik announced that the government was fully prepared to support and develop the province, particularly in terms of border trade with Myanmar. The ministry is urging Thailand to jointly invest with neighboring countries to open up trade and investment markets.

"Studies on border trade show that Ratchaburi should be a center of trade in the future. Annual trade between Thailand and Myanmar is no less than US$100 million a year. I am confident that if both sides increase their trade, this figure will increase," Adisai said.

Thai investors have been expressing great interest in Myanmar projects, but are hampered by Myanmar government regulations. The Thai government is negotiating to ensure that restrictions on Thai investors are eased.

Adisai added that the government is also working to solve problems related to Myanmar laborers in the Kingdom.

The commerce minister said, "At present, there are a large number of Myanmar laborers in Thailand. We need to lay down framework for the use of workers from both sides to ensure fair practices." (TNA)


More palm oil production promoted for bio-diesel to reduce oil imports

The Ministry of Agriculture and Cooperatives is preparing to pour 2 billion baht into the promotion of oil palm cultivation over a two-million rai area in hopes of spurring the production of bio-diesel.

Deputy Agriculture and Cooperative Minister Newin Chidchob said that the ministry intends to introduce a new dimension to agricultural production by focusing on health and safety concerns in accordance with the government’s target of turning 2004 into a year of food safety and agriculture for energy.

Under the new scheme the ministry will encourage farmers to grow crops for the manufacture of bio-diesel, which would both reduce oil imports and generate extra income and employment for the agricultural sector.

Projects for 2004 will include the transformation of around 700,000 rai of land into land suitable for oil palm cultivation, and the use of high-performing strains.

The use of bio-diesel could save the public as much as 2 baht per liter on normal petrol prices, and ensure income security for palm oil farmers. The Agricultural Engineering Division is currently studying the use of farming equipment powered by bio-diesel in local communities. (TNA)


Phuket pawnshop business soars due to SARS

When the economy is in a slump, one of the first indications is a sudden rise in business at pawnshops. This is certainly true in the tourist resort island of Phuket, where plummeting tourist numbers due to the impact of Severe Acute Respiratory Syndrome (SARS) have pushed up pawnshop business by 80 percent.

With business booming, local pawnshops take no chances. Phuwadol Chinnupatham, manager of the state-run Phuket municipality pawnshop said, "The pawnshop has prepared an extra 12 million baht for the start of the school term, when people traditionally pawn their belongings to pay for school expenses."

This figure is up 3 million baht from previous years, as this year the start of the school year and the tourist low season has coincided with the impact of SARS. Many people involved in the tourism industry have been laid off or put on temporary leaves.

However it is expected that most people will able to redeem their pledges as the island remains hopeful its economy will enjoy a greater liquidity than that of other provinces. (TNA)


Czechoslovakia keen on economic partnership with Thailand

Foreign Minister Surakiart Sathirathai recently paid an official visit to Czech Republic and was successful in paving the way to build bilateral relations and friendship with the country, which will become a new partner of the European Union next year.

"Czech Prime Minister Vladimir Spidla thinks the Thai government is on the right track for adopting the policy to stimulate the economy at the grass-root level. He wants Thailand to exchange visits and economic views more frequently," Surakiart said.

As a result of the meeting Surakiart said the Czech premier had invited Thai counterpart Thaksin Shinawatra to pay an official visit.

Spidla said, "I see Thailand as a key country in Southeast Asia because it has enjoyed stability in many areas, and I want to see a strengthening of relations between the two countries in a new era." (TNA)


PM promises the public 1 million cheap computers

Prime Minister Thaksin Shinawatra has promised that one million members of the public will have the opportunity to purchase cheap computers, after thousands queued at the Queen Sirikit National Convention Center on May 10 to reserve one of 100,000 low-cost computers offered by the government as part of its plan to create a knowledge-based society.

Under the government scheme members of the public can purchase desktop PCs for 10,900 baht or notebook computers for 19,500 baht with interest rates of 6.25 percent offered by Krung Thai Bank Plc. Twenty thousand people queued for hours to reserve one of the initial sets on offer.

The government is acknowledging the necessity of computers and the Internet for daily living, while promising to liaise with the Royal Thai Police and the Communications Authority of Thailand (CAT) to ensure that the Internet was not used for dubious purposes. (TNA)


Report by World Bank projects Thailand’s GDP growth to slow to 4.5% in 2003

An report put out by the World Bank said it expects Thailand’s gross domestic product growth to slow to 4.5% this year compared with 5.2% last year, due to the impact the SARS epidemic is having on the country’s and East Asia’s trade and tourism.

The report stated that there is increasing confirmation that tourism, which contributes to 6% of Thailand’s GDP, has been dealt a serious blow by SARS and the impact could have lasting effects well into the third quarter.

Figures also show that Thailand’s booming exports were slowing down. During the first quarter of this year exports showed a 20 percent year-on-year growth but the month of April witnessed a slowdown.

"The high growth in exports and in export orders of the first two months of 2003 is now replaced by much slower growth in March which looks unlikely to recover until after the first half of 2003," the report said.

On a more positive note, increased private consumption is expected to play a key role in increasing GDP growth. The manufacturing sector grew by more than 8 percent.

Exports to China expanded 24 percent, highlighted by an increase in manufactured goods, particularly those in the technology-intensive category. (TNA)


BCCT Eastern Seaboard Networking Evening joins with Travel Clinic

The BCCT in cooperation with the Travel Clinic invites everyone to a special evening of social mingling and business information exchange on Friday, May 23rd from 6:00 p.m. at the Bang Saray Club, Bang Saray.

All nationalities are welcome. Those who require a location map can telephone Khun Nongyao at the BCCT office at 02 651 5350-3.

The Travel Clinic is sponsoring beverages and snacks on a first-come, first-served basis from 6.30 p.m. All other beverages are at standard prices as will the sponsored supplies have run out. Austrian Airlines are also sponsoring some Austrian wine.

There is no fee for BCCT members. Non-members and guests will be charged 300 per baht person for entry to this event.

Should they join the BCCT within three months of 23rd May 2003 they will receive a refund of 300 baht per company membership. Hope to see you there!


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