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Thai Customs Department to spend 1 billion baht on container
X-ray machines
Customs Department deputy director, Ruengsak Loikulnan
recently announced that Thailand will accede to US demands to fit container
X-ray machines at Thai ports.
Ruengsak Loikulnan said, “The cabinet has been asked to
approve Thailand’s endorsement of the US’s Container Security Initiative
(CSI) and it will probably be signed sometime in June.”
The CSI, designed to counter terrorist threats, requires
all US trade partners to fit container X-ray machines and inform the US of
goods lists 24 hours before ships dock at US ports.
Ruengsak admitted however that the CSI was complex and
would be difficult to implement immediately, and said that Thailand would
request that the US extend the deadline for its enforcement by another six
months in order that the Customs Department could prepare personnel and
X-ray machines.
The department is currently selecting a company to
provide the five machines, which are expected cost around 1 billion baht.
The deputy director of the Customs Department said that
while the CSI would be a financial burden to both the department and to
exporters, it would also help boost relations with the United States.
At the same time, the permanent presence of US officials
at Laem Chabang Port will facilitate the inspection of export containers,
which in turn will help reduce damage to Thai exports waiting for inspection
at their destination.
Thai companies queue up to help rebuild Iraq
According to the Thai Federation of Design and
Construction Businesses (TFDCB) Thai construction and design companies are
flocking to bid for contracts in the reconstruction of Iraq, with
delegations already in Iraq to check out new Middle Eastern markets.
TFDCB president Wiboon Sriprasert said private sector
companies from the design and construction sector have joined together with
public sector trade representatives to assess the post-war Iraqi market.
While conceding that Thai companies did not have the
advantages of their US and UK counterparts when it came to the bidding
process for development contracts, he expressed confidence that
opportunities for Thai companies to take over small-scale operations from
larger companies were high.
Wiboon said that Iraq will also need roads, food,
clothing, and medicine, which would present good opportunities for Thai
companies.
Meanwhile Phayao Sukmak, director of the Department for
Export Promotion’s service business division, said that the division will
push for local design and construction companies to work in the development
of Iraq.
Thai companies already earn several million baht each
year from design and construction contracts in the region, and Thailand has
built a good reputation for itself.
Industrial sector worried about strong baht
Santi Wilassakdanont, vice -president of the Federation
of Thai Industries (FTI) recently stated that the stronger baht will most
likely push Thai export prices higher, though it will help reduce prices of
imported raw materials, especially oil products.
The FTI is concerned that the confidence index of the
Thai industrial sector could fall from its pervious 95.5 points measured in
April of this year. Manufactures fear that a stronger baht will make
Thailand’s exports less competitive in the market.
Siam City Cement sees revenue growth due to increased prices
Siam City Cement’s CEO Vincent Bichet recently voiced
optimism about the company’s sustainable growth. Siam City Cement is the
nation’s second largest cement producer. “The company is likely to see
sustained revenue growth this year, but just how much is remains to be
seen,” Bichet admitted.
Bichet said he expects the company to retain its 28
percent market share. He said although domestic demand for cement may not
show any sharp improvements, during the second quarter his company’s
performance would be relatively good as cement prices have improved to 1,700
baht per ton, against about 1,500 baht per tons during the same period last
year.
Thailand’s domestic demand for cement during last year
stood at about 22.3 million tons. However, improved economic recovery may
see demand to rise to nearly 23 million tons this year.
Bichet added that the essentials for growth are in place
but explained that the main driver for cement consumption in Thailand is the
private sector. He stressed that low interest rates coupled with pent-up
demand in the residential housing sector has accounted for about 80% of
domestic consumption. (TNA)
New Director of Sales Center appointed at Bangkok Marriott Resort and Spa
John Eaton, General Manager for Bangkok’s largest
riverside resort, the Bangkok Marriott Resort & Spa has appointed
Nattapun Runyasewa as Director of Sales Center. Ms. Runyasewa is responsible
for overseeing the sales center management for the Bangkok Marriott Resort
& Spa.
Nattapun
Runyasewa
Ms. Runyasewa graduated from Srinakarinwiroj University
in Thailand with a Bachelor Degree with Honors in Tourism Management and
also completed a Master Degree in Hospitality Administration from Johnson
& Wales University, Rhode Island, U.S.A.
Ms. Runyasewa has a wealth of experience in sales in the hotel business
for 8 years including Dusit Island Resort, Chiangrai, Royal Orchid Sheraton
Bangkok and Sheraton Grande Sukhumvit Bangkok. Prior to joining the Bangkok
Marriott Resort & Spa, she was Assistant Director of Sales - Trade at
Sheraton Grande Sukhumvit Bangkok.
US Capital Group Corporation and other investors take 11.24% of Eastern Star
U.S. Capital Group Corporation is an investment company
formed to acquire significant interests in Thai companies, particularly in
the real estate sector. It is controlled by New York based investors, John
Hesse and Paul Yang. Eastern Star Plc. is US Capital’s first investment.
The first phase of U.S. Capital’s investment in ESTAR was completed last
week.
This follows the recent placements by Eastern Star of
268.4 million new shares to members of the Sunrise Equity Co. Ltd. and
Bangkok Broadcasting & T.V. Co., Ltd. Group of Companies and 16 million
new shares to Thanachart Bank Plc. Since 1st January 2003, Eastern Star has
raised Baht 1.075 billion baht in new cash.
Commenting on the subscription, John Hesse of U.S.
Capital Corp. said, “The Company now has both very strong local
connections with the Sunrise Equity Co. Ltd. and Bangkok Broadcasting &
T.V. Co., Ltd. Group of Companies and additional international expertise in
both property and investment banking as a result of its connections with our
group. We look forward to briefing ESTAR on to the U.S. property
landscape.”
It is planned that both the Sunrise Equity Co. Ltd. and
Bangkok Broadcasting & T.V. Co., Ltd. Group of Companies and U.S.
Capital Group will significantly increase their shareholdings in ESTAR
(second and third phase include 198.4 million share at 4 baht per share and
1.13 billion shares at not less than 5 baht per share).
Eastern Star is listed on the Stock Exchange of Thailand
under the Property Development Sector.
Eastern Star revamps its board to reflect significant of shareholding
changes
Eastern Star recently announced seven new members joining
the board of directors, resulting in a joint venture of new investors:
Veraphan Teepsuwan Vice Chairman of the Board, Paul Yang Vice Chairman of
the Board, Preecha Oonchitti Director and Audit Committee Member, Yongyuth
Withyawongsaruchi Director and Audit Committee Member, Robert W. McMillen
Director and Audit Committee Member, Soonthorn Kittiyawat Director, John
Hesse Director.
Anand Panyarachun, chairman of Eastern Star said, “I am delighted to
welcome each of these gentlemen to our board. They each have skills which
will be very valuable to us as we move forward and expand. We are now past
the difficult stages of our rehabilitation and, together with out new
partners, we look forward to a much brighter future.”
Local financial institutions free to set their own rates
Bank of Thailand (BOT) governor Pridiyathorn Devakula
recently stated that the central bank will let local interest rates move in
line with market mechanisms, rather than force domestic financial
institutions to raise or lower their rates.
Pridiyathorn said, “Local financial institutions can
decide themselves as to whether or not to cut or maintain their current
rates. There have been occasions when some local financial institutions said
they would further cut their rates, but did not do so. The BOT feels local
interest rates should remain at the current low level.”
The BOT governor said commercial banks have limited room
for further cuts in rates in order to spur domestic spending, but that
Thailand has no external factors pressuring local financial institutions to
raise their rates.
FPO sees GDP growth of 5.1 percent
Visuth Srisupan, director-general of the Fiscal Policy
Office (FPO) recently announced the SARS epidemic was likely to reduce the
economic growth rate to 3.5% and 5% in the second and third quarter of this
year, but the continued decline in fuel prices in the world market will
contribute to sustained growth.
Global oil prices dropped to US$31.4 per barrel in the
first quarter and continued to fall to US$23-24 per barrel at present. It is
expected fuel prices will average US$27.2 per barrel for the whole year
against US$29 as projected previously.
Lending by commercial bank continued to grow 4.3% this
year. Accoding to the FPO domestic consumption and local investment are now
the main drivers of economic growth.
However, the FPO projected the export of goods and
service would expand at a slower pace, dampened by the stronger baht.
China agrees to open up free trade in fruit and vegetables
China has agreed to sign an agreement that will open up
free trade in fruits and vegetables with Thailand, with taxes on bilateral
fruit and vegetable imports slashed to 0 percent from October onwards.
Speaking after a multilateral meeting among commerce
ministers of Papua New Guinea, Taiwan, Hong Kong, China, Vietnam, South
Korea and Thailand, Commerce Minister Adisai Bodharamik said that he would
sign the free trade agreement in Beijing on June 16.
The agreement, which will come into effect on October 1,
would immediately abolish import tariffs on 200 kinds of fruit and vegetable
imports between the two countries. At present Thailand imposes a 30 percent
tariff, and China a tariff of 20-30 percent.
Chinese commerce minister promised as well that he would
look into the problem of Thai exports of logans to China, which at present
China refuses to accept, citing unacceptable levels of chemical residues.
Adisai said that during the meeting Vietnam had thanked
Thailand for cooperation in the rice trade, and also for its assistance in
gaining World Trade Organization membership for Vietnam.
Thailand has also signed its first-ever trade agreement
with Papua New Guinea, which will allow Thailand to offer assistance to
Papua New Guinea in upgrading its agricultural production processes. The
agreement will possibly lead to Thai investors investing in the Papua New
Guinean agricultural and food sectors. The two countries also discussed the
possibility of bilateral account trade, which will help increase trade
between the two countries.
Papua New Guinea currently purchases 200,000 tons of rice
from Thailand each year, which is presently packaged in Australia before
being shipped across to Papua New Guinea.
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