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Big C Supercenter sees profits soar in second quarter
Big C Supercenter Plc, the nation’s second largest
retailer, reported the company’s profit rose 4.7 percent in the second
quarter of this year as sales increased after the expansion of new stores.
Big C reported its profit stood at 352.8 million baht up
from 336.9 million baht last year. Earnings were boosted by booming sales
from its 35 stores around the country, including its newest new three
stores.
A spokesman for the firm said the company’s sales were
not affected by the outbreak of SARS as some had feared. In fact, sales are
expected to continue to increase throughout the remainder of the year as
long as the economy stays steady. (TNA)
Printing and packaging industrial estate to be built in Samut Sakhon Province
Industry Minister Somsak Thepsuthin has vowed to press
ahead with the establishment of a new industrial estate focused on the
printing and packaging industries, aimed at providing an integrated raft of
services which the government hopes will boost Thailand’s global
competitiveness.
After presiding over the signing ceremony for the
establishment of the Sinsakhon Industrial Estate, a collaborative project
linking the Industrial Estates Authority of Thailand (IEAT) and CAS Printing
Co. Ltd., Somsak said that the estate was being set up as part of the
government’s promotion of industrial clusters designed to strengthen
particular industrial groupings.
Sinsakhon expressed hope that the new estate would
strengthen Thailand’s printing industry, noting that it would provide a
complete range of services, from sourcing raw materials to production,
services, trade and transportation. “Not only would this help bolster
Thailand’s global competitiveness, it would also help conserve the
environment and cushion the blow from foreign trade barriers,” he said.
Three target industries will form the core of the
Sinsakhon estate: the print industry equipment production sector, producing
machinery such as printing presses and developing printing industry
personnel; the printing industry itself; and the printing press maintenance
sector.
The estate will be located in Samut Sakhon Province,
adjacent to Bangkok, on 700 rai of land. Of this 500 rai will be devoted to
industry while six rai will be given over to trade, 44 rai to offices, and
the remainder to other public facilities. The 1.430 billion baht project
will take two years to develop. Sixty percent of the investment will come
from shareholders, with the remaining percent derived from domestic loans.
IEAT governor Anchalee Chavanich said that she expected the project to get
underway in January next year. (TNA)
Economist expresses concern over rising household debt
While speaking at a recent seminar, Chirathep Senivongs
Na Ayudhya, an economist at the Bank of Thailand (BOT) said latest figures
show a sharp increase in personal loans which is resulting in higher
household debt.
“We are back to the 20 to 30 percent growth in personal
loans, similar to that seen during the pre-crisis level and this is
something that the country needs to keep a close eye on,” Chirathep told
the seminar.
Chirathep’s study was backed by central bank governor,
Pridiyathorn Devakula, who agreed rising household debt was something that
would be monitored. “We are closely watching the situation, but presently
we view these debts are still at a manageable level,” Pridiyathorn said.
“Thailand’s consumer confidence index recently hit a 58 month high, led
by purchases of durable goods which boosted demand for consumer loans,” he
added.
Chirathep said that his study shows that household debt
rose around 20 percent to 82,485 last year from 68,279 baht in 2001 and
about 69,674 baht in 1998, a year into the economic crisis. (TNA)
Thailand and Laos agree to
expand trade and investment
Senior Commerce Ministry officials have hailed a recent
trip to Laos as a resounding success, after the two countries agreed to
boost bilateral trade and investment, with Laos acting as a gateway for Thai
goods to the region.
Wichak Wisetnoi, Deputy Director-General of the
Department of International Trade led a delegation of businesspeople from
the timber industry, furniture industry, agricultural sector, vegetable oil
sector, paper pulp industry, construction sector, eucalyptus cultivation
sector, and transport sector to business and investment talks in the Lao
provinces of Savannakhet and Champasak. The Thai delegation was able to meet
deputy governors of both provinces, as well as policy-making officials.
Laos asked for assistance in investment and development
in marketing, and had requested that Thailand purchase more Lao products.
Wichak noted that the completion of the second Friendship Bridge, scheduled
for 2006, would give a boost to the regional economy by forging more
communication links between Thailand, Myanmar, Laos and Vietnam.
The Thai delegation also proposed investment in an
integrated eucalyptus cultivation program. In addition, Thailand expressed
an interest in collaborative development to add value to wood waste and
small wood products, as well as assist in marketing.
The two sides also want to boost the soy bean cultivation
sector, noting that Thailand currently imported 1.5 million tons of soy
beans each year from the United States, Brazil and Argentina. (TNA)
ASEAN’s largest solar powered
electricity plant to open in Mae Hong Son
Thailand is set to harness its year-round sunshine to
provide electricity for the northern province of Mae Hong Son, with the
Electricity Generating Authority of Thailand (EGAT) now pushing forward with
a 200 million baht project to establish a solar powered generating plant
there.
Speaking after the ceremony to lay the foundation stone
at the solar powered station in Tambon Pha Bong, Energy Minister Prommin
Lertsuridej said, “The opening of the generating plant underlines the
government’s policy to provide electricity to people living in remote
locations and ensure the use of clean energy. The Mae Hong Son plant will be
the largest solar powered station in the Association of Southeast Asian
Nations (ASEAN).
While conceding that the production costs for solar
powered electricity were five times higher than those for ordinary
electricity, the energy minister stressed that the construction costs for
the station were considerably lower than the billions of baht which would
otherwise have to be spent on bringing in electricity from nearby provinces.
EGAT governor Sithiporn Rattanaphas added, “The Pha
Bong plant will help preserve the environment and meet the growing demands
of tourists in the province. In the first phase, the plant will generate 500
kilowatts, but in the future the plant will generate 1,750 kilowatts.” (TNA)
Government plans to use lottery proceeds for social development
According to Deputy Prime Minister Chaturon Chaisang, the
profits from sales of two and three-digit lottery prizes are to be ploughed
back into social development projects.
Speaking after a meeting among agencies concerned with
the proceeds of the new lottery game which was designed to replace the
underground lottery, Chaturon said that the government will announce clear
approaches as to how the lottery proceeds could best be used for social
advancement.
Chaturon expressed hope that students and members of the
public suffering from poverty would be able to have their cases for lottery
funding considered by the committee responsible. After the facts of each
request had been assessed, funding would be allocated around November of
2003 and added that the public and private sectors would check whether or
not the poverty of those making the requests was genuine, and the reason
behind that poverty, in order to solve problems on a long-term basis. (TNA)
PTT’s president says firm to restructure
both at home and abroad
Thailand’s oil and gas conglomerate PTT Plc said it is
planning to restructure its operations, locally and overseas, in its attempt
to become a market leader in Southeast Asia.
Company president Prasert Bunsumpun, recently announced,
“It is entirely possible that PTT could become a regional leader because
of its diverse operations which include refinery plants, retail fuel oil and
gas trading, and exploration and production of natural gas. The company is
also planning to set up an export processing zone either in Chonburi
Province Rayong Province to increase efficiency.”
Prasert said, “PTT wants to become a gas company with
oil fuel and petrochemical as core areas. Future plans include the export of
our energy products, mainly to China, but also to neighboring countries,”
added Prasert.
Presently PTT’s investment overseas involves only gas
and petroleum exploration. However, the firm sees increasing benefits in
making overseas investments on fuel oil and other petroleum products.
Prasert said the investment in exploration and production
in the Middle East, Africa, and neighboring countries would be made through
its flagship unit, PTT Exploration & Production Plc (PTTEP), while PTT
itself will take charge of gas distribution. PTT now owns a 63 percent stake
in PTTEP.
Prasert added that PTT plans to sell a 36 percent stake
each in Rayong Refinery, and Star Petroleum Refining, as well as a 24
percent stake of Bangchak Petroleum Plc. PTT intends to sell them once
market conditions are favorable and terms for share purchases are
attractive. (TNA)
Clothing industry calls on government
to push FTAs with US and EU
President of the Thai Clothing Industry Association
Suchaat Chantaranakharat is urging the government to push ahead with the
establishment of free trade areas (FTAs) with the United States and the
European Union (EU) to cushion the impact of the liberalization of the
global clothing industry under World Trade Organization (WTO) rules in 2005.
Suchaat said the Thai clothing industry backed the
government in its negotiations to establish the FTAs with the US, scheduled
to be inaugurated in 2004, and with the EU, which had also expressed an
interest in the establishment of a free trade deal. He said if these two
FTAs become a reality, they would ease the impact of the liberalization of
the global clothing industry under WTO regulations.
Noting that Thailand’s clothing exports had grown by 11
percent over the first half of the year, Suchaat predicted that the growth
rate for the year as a whole would be no less than 5-6 percent, with total
exports worth over 3 billion US dollars. (TNA)
Traditional medicine
to be developed for export
A Thai research center plans to develop various Thai
herbs in response to the growing demand in both domestic and global markets.
Speaking after a seminar on Thai traditional medicine research and
development held by the National Research Council of Thailand (NRCT),
Chirapandh Arthachinta Secretary General of NRCT said that Thai herbal
products, both in the form of supplementary food and in the form cosmetics,
have potential in local and global markets.
While noting that more scientific research needed to be
conducted to assure medicinal properties of the herbs, Chirapandh said that
more information about benefits and cultivation of Thai herbs should be
collected to promote the use of Thai traditional remedies.
NRCT has aside about 70 million baht to support in-depth
studies, and will set the standard of extracted herbs. “Two main projects
on the development of Ya-hom (anti-nausea herbal powder) and 10 other kinds
of herbs will be implemented in 2004,” said Associate Prof. Promchit
Sorlalam, Faculty of Pharmacy, Mahidol University. “The project will
create the integration of knowledge bases and the network of herb
researchers,” she added.
An initial survey showed there were more than 300
formulas of Ya-hom produced in the country. Ya-hom has medicinal properties
to relieve nausea and stimulate the digestive system. The demand is high
among the elderly, and its potential for export is seen as promising. (TNA)
Local industries urged to improve
production efficiency
Leading economists say many local industries need to
improve production efficiency unless they want to lose competitiveness.
Speaking at a seminar on “Strategy to Enhance Competitiveness of Thai
Industries, Theera Atchakul, economic advisor of Industrial Finance
Corporation of Thailand (IFCT), said some foreign economists warned the Thai
economic growth of 5-6% might not be sustainable because the expansion
stemmed from economic stimulation through state spending, and not actual
production efficiency.
Theera said, “The IFCT and the Industrial Economics
Office jointly estimated industrial competitiveness by using the Total
Factor Productivity (TFP) approach to gauge production efficiency of each
industry in many countries including Japan, Hong Kong, France, Germany,
China, the United States and Thailand. They found the production efficiency
of Thailand lowest since the country’s economic growth stemmed from an
increase in labor and capacity, not production efficiency.”
Theera said many industries ran the risk of losing
competitiveness with foreign rivals as their TFP is lower than 100 points.
The industries at risk include auto parts, concrete products, processed
fruits and vegetables, ceramics, electrical appliances, sugar, steel
products, footwear, furniture, and textiles. (TNA)
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