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Local fabric industry to get high-tech boost
Industry Minister Phinij Jarusombat recently announced
the government’s plans to launch a technology center in order to push
Thailand’s fabric and clothing industries to the forefront of an
increasingly competitive global marketplace. Over 1 million people are
employed in Thailand’s fabric and clothing industry, which last year
generated US$3.025 billion in export revenue. The industry is considered
particularly important as it does not need to rely on raw material imports.
Noting that urgent adjustments would have to be made to
Thailand’s fabric and clothing industry to cope with free trade from the
beginning of 2005, Phinij said that talks with industry professionals had
resulted in proposals to establish an IT ‘master plan’ to set up an
industry network and develop the production system.
Thailand’s fabric and clothing industry is among
Thailand’s top three export earners, generating over US$3 billion each
year for the past eight years. Important competitors are China, Vietnam and
Bangladesh, where production costs are cheaper than in Thailand. The new
technology center will allow Thailand’s state, private sector and
customers to exchange information, and lead to the rapid development of a
marketing network.
The Ministry of Industry also has plans to develop the
logistics system to make it faster, thus reducing time and expenses by 15-26
percent. (TNA)
Pegged oil prices to end in March
The government is likely to end its imposition of
price-ceiling on domestic gasoline in March, as oil prices in the world
market are declining, according to Energy Minister Prommin Lertsuridej.
M.D. Prommin stated on February 5 the government had
planned to stop its intervention in the domestic oil market, and to let the
market mechanism to resume its role by next month.
“Now oil prices in the world market, including those of
benzene and diesel, are dropping although the prices are still slightly
higher than pegged gasoline prices announced by the government last month.
However, even if the world oil prices drop to below the government’s
pegged gasoline prices in the domestic market, the government won’t
immediately end its intervention, but will continue to implement the
price-ceiling policy until it can collect a funding of over 1.7 billion baht
to be reimbursed to the Oil Fund. This is expected to take about one month,
so the government is likely to end the pegged gasoline prices in March”,
said the energy minister. (TNA)
‘New Wave’ program supports student entrepreneurship
The Department of Industrial Promotion has launched a
program designed to create a new generation of entrepreneurs from among
today’s population of students. Over 2,000 students rushed to enter the
department’s business plan competition.
The program, under which students in educational
institutes across the country established mock-up businesses, was designed
to give final year degree students a taste of life as an entrepreneur.
Under the New Wave 2003 program, 2,400 students across
the country are already receiving business training, and entered their
business plans into a competition that was judged on February 2nd.
“There were really interesting plans that were
submitted for the competition,” said the department’s deputy
director-general, Vim Roonggrout. “All the plans could be translated into
real businesses if they received financial support.”
Many of the projects focused on the use of herbs in the
spa sector, and service businesses such as motorcycle cleaning. (TNA)
Foreign investors confident
Foreign investors are paying greater attention to the
overall picture of the Thai economy, rather than the avian influenza
problem, according to the Stock Exchange of Thailand (SET)’s president
Kittirat Na Ranong.
Giving an interview on the phone from London last week,
Kittirat said the ongoing road show had drawn overwhelming interest from
foreign institutional investors and more than 29 fund managers attended a
forum where Finance Minister Suchart Jaovisidha gave a keynote speech.
The SET chief conceded that foreign fund managers were
fully aware of the outbreak of the bird flu in several Asian countries, and
were monitoring the situation closely. But he added that they viewed the
outbreak would be less severe than that of the mad-cow disease. “They
believe containing the bird flu outbreak is easier because the life span of
chickens is shorter than that of cows,” he said.
Kittirat said he did not believe the avian flu problem
would impede Thailand’s overall economic growth but it might have a
psychological effect on the investment sentiment in the stock market. He
pointed out that foreign investors might even take this as good opportunity
to invest in the market.
The SET chief said, “Foreign investors are paying special attention to
the overall picture of the Thai economy and they need to know whether
economic growth will be sustainable because they want to make long-term
investments.” (TNA)
Push to become regional oil trade hub still on
Energy Minister Prommin Lertsuridej expressed confidence
that Thailand would become a regional oil trade hub within the next five
years. Speaking while leading media members to observe oil depots in
Singapore, he said, “Thailand is not inferior to Singapore in terms of
infrastructure needed for the establishment of the ambitious oil hub.
Facilities located in Sriracha, Sri Chang and Mabtaput in Thailand’s
eastern region are well equipped for that purpose. Also, Thailand has
communication links with Laos, Vietnam, and southern China.”
Dr. Prommin said, “Once our market becomes an oil trade
hub, we will be able to set fuel prices without having to quote those in
Singapore anymore. Still, it will take time to do that.”
The energy minister said several key oil traders in
Singapore viewed it was possible for Thailand to set its own benchmark for
oil prices. He added that most investors in the oil industry in Singapore
were eyeing Thailand, but they want to study rules and regulations on the
oil trade beforehand and feel the Thai government must liberalize the market
as much as possible. (TNA)
Thai-Chinese FTA ups fruit exports
Three months of free trade in fruits and vegetables
between Thailand and China have resulted in a huge boost for Thai exports,
with Thailand maintaining its trade surplus over China in the fruit and
vegetable markets, according to director-general of the Department of
International Trade.
Rachane Potjanasuntorn said, “Since October 2003, when
Thailand and China liberalized bilateral trade in fruits and vegetables
based on the Sino-Thai Free Trade Area (FTA), the department has received
2,225 requests from fruit and vegetable exporters for special tax privileges
to export their products to China, with trade valued at over 2.9 billion
baht.”
Customs Department statistics suggest that in the three
months since the liberalization of the fruit and vegetable trade, imports
from China rose by 222 percent, while exports to China rose by 80 percent.
Thailand maintained its trade surplus in fruits and
vegetables although the value of the surplus fell from 696.19 million baht
to 373.33 million baht.
Rachane attributed the reduction in Thailand’s trade
surplus to the fact that the first three months of liberalized trade saw a
huge number of festivals in Thailand, including New Year and Chinese New
Year, for which imported Chinese fruits proved popular.
Rachane expressed confidence that once Thailand enters
into its main fruit season, exports to China would pick up, which, in turn,
would serve to stabilize the price of Thai fruits.
Overall, the FTA has caused trade between Thailand and
China to grow by 33.7 percent, compared to 24.6 percent during the same
period in 2002. This nudged China into fourth place in terms of Thailand’s
most important trade markets after the United States, Japan and Singapore.
However, the growth rate in imports from China has fallen from 28.3 percent
to 18.6 percent over the same period. (TNA)
Thai-German Chamber luncheon
Recently, His Excellency Dr. Surakiart Sathirathai (6th
from left), Minister of Foreign Affairs of Thailand gave a luncheon speech
to the German - Thai Chamber of Commerce on the topic “The Future of
Thai-German and Thai-European Economic Relations” at the Grand Hyatt
Erawan Hotel, Bangkok.
 Photo
shows (from left) Virasakdi Futrakul, deputy permanent secretary for foreign
affairs; Nandor von der Luehe, president of Swiss-Thai Chamber of Commerce;
Karl-Heinz Heckhausen, vice-president of the German-Thai Chamber of
Commerce; Dr. Sorajak Kasemsuvan, vice minister for foreign affairs; H.E.
Andreas von Stechow, German ambassador; H.E. Dr. Surakiart Sathirathai,
minister of foreign affairs; Sumate Tanthuwanit, president of German-Thai
Chamber of Commerce; H.E. Dr. Herbert Traxl, Austrian ambassador and Dr.
Paul Strunk, executive director of the German-Thai Chamber of Commerce.
Investment situation in south still promising
The southern regional Office of Investment Economics has
predicted a surge in investment in the southern provinces this year, despite
a 19 percent drop in 2003. Office director Jamrat Sriprasom conceded that
last year saw a 19.4 percent drop in the number of projects in the south
receiving investment concessions, with a 26.9 percent fall in the amount of
money invested. Nonetheless, he noted that the number of new jobs had risen
by 10.5 percent over the same period.
The southern border region has witnessed a spate of
violence in recent months, although the government has continually insisted
that this has not had an adverse impact on the region’s investment
situation.
Citing figures showing that most of the region’s
investment in 2003 was in agriculture and agricultural products, Jamrat said
that rubber, food products and the service sector remained the most
important fields of industry. He added that Songkhla continued to soak up
the greatest proportion of the region’s investment, at 40.7 percent of the
total.
Jamrat said, “I am confident regional investment will look up in 2004,
with a twofold growth rate. Fourteen projects are currently being considered
for investment concessions. These projects are in the palm oil, software and
agriculture sectors. Other factors that will encourage investment in the
region include low interest rates and government promotions.” (TNA)
Chicken consumption increases as confidence returns
If any proof were needed that public confidence in
chicken products was on the rise, one would have had to look no further than
the pavement outside the headquarters of Channel 11 Radio, where crowds of
Thais happily munched through fried chicken handed out by one of the
nation’s leading chicken producers on February 1st.
All thoughts of avian flu were forgotten as the queues
formed for fried chicken, chicken sausages and chicken nuggets distributed
free by Saha Farm. Within minutes, all the food had run out.
Sa-nga Damaphong, president of the Thai Consumers
Association, meanwhile rammed home the message that Thai chicken products
were safe. Calling on the public to continue eating well-cooked Thai chicken
and eggs, he stressed the nutritional value for children of eating at least
one egg each day. (TNA)
Cash Converters opens in Pattaya
With a proven record of success and over 500 stores in 23
countries, Cash Converters is the largest retailer of used goods in the
world. The success story is apparent in Thailand too, as Cash Converters has
just opened its 3rd Thai store here in Pattaya.
The name of the store Cash Converters and its catch
phrase “A better way to sell, a great place to shop” tells it all. Take
along your unwanted goods and sell them for instant cash, which beats
selling via the classified adverts in newspapers, car boot sales or over the
Internet. Shop for great bargains from a wide range of used goods in a
bright, clean environment.
The new 300 sq. meter Cash Converters store is divided
into two sections: the 50 sq. meter Buys Room, where individuals can go to a
counter to exchange their used goods for cash and a 250 sq. meter Retail
Section. The Buys Room is already open and will be followed by the Retail
Section on February 28.
This novel concept store originates from Australia, and
is opened under a franchise agreement. The store buys and sells a very wide
range of used goods. Bring in your old TV, camera, golf clubs, watch,
microwave - in fact, almost anything and the store will pay cash -
instantly.
The store has already bought hundreds of different types
of goods - from the ordinary to the strange and unusual - they even have a
para-glider in stock! So why not sell your old camera, unused keyboard,
watch, iron, guitar, unwanted plates and cups cluttering your cupboards, the
unused coffee machine or crash-helmet! Get cash for an unwanted vase, lamp
or those decorative items which don’t fit in to your home.
Cash Converters helps you recycle your unwanted items
that are too good to throw away or give away. Why let your unwanted goods
gather dust in the cupboard, the attic or the garage and then throw them
out? Other people have a use for them. (Note that the store does NOT buy
clothes, shoes, books or large items such as washing machines or
refrigerators).
The store is open between 10am to 10pm, 7 days a week.
Cash Converters is located on the 2nd Floor of Carrefour on Pattaya Central
Road, or telephone 038-488240.
PM says number of poor will not exceed 8 million
Prime Minister Thaksin Shinawatra has forecast that the
number of people putting their names on the government’s nationwide
poverty register would not exceed 8 million.
“The poverty registration project, for which 5.6
million people have registered to date, is already showing promising results
which can translate into measures to eliminate poverty,” said Thaksin.
Data shows that the most widespread problems that have
emerged as a result of the poverty register are debt, land use and
accommodation. Thaksin predicted that by the time the register closed on
February 29, no more than 8 million people will have put their names
forward.
However, the Thai leader also noted that some of these 8
million might be family members who had registered separately, but who had
joint debts. Village heads are now required to assess whether or not claims
are genuine.
Thaksin said that poverty elimination measures would
begin in earnest later this year, particularly measures relating to debt
restructuring and land allocation. In addition, he vowed the government will
work to provide more affordable housing, and encourage homeless people to
turn to new areas of employment. (TNA)
Reaction to bird flu on SET temporary
The Stock Exchange of Thailand (SET) index will be
affected by the outbreak of an avian influenza in the country only in the
short run, according to a leading brokerage house.
Suvit Mapaisalsilp, President and CEO of Bhatra
Securities Co. said, “In the long run, the prospects of the stock market
look good, given the country’s strong economic position and any negative
impact will be mainly on the export of chickens and their products.”
Suvit added, “The government will contain the bird flu
outbreak soon. I still believe the economy this year will grow up to 8
percent as targeted by the government and the market capitalization is
expected to reach five trillion baht.” (TNA)
GSB prepares 20 billion baht for poultry farmers
The Government Savings Bank (GSB) announced that it will
mobilize 20 billion baht in funds to assist the nation’s beleaguered
chicken farmers. GSB Director-General Goanpot Asvinvichit said that at least
200 of the bank’s customers were chicken farmers affected by the virus.
Once the situation has cleared, the bank pledged to extend loans of
900,000-1,000,000 baht to small-scale farmers, or up to 3 million baht for
large-scale farming operations. (TNA)
Half price designers’ clothes kick off fashion carnival
One of Bangkok’s main thoroughfares is being turned
into a shopaholic’s paradise to mark the government’s declaration of
Bangkok as ‘Fashion City’, with prices of designers’ goods slashed by
50 percent.
Phanlert Baiyok, assistant to the industry ministry
announced that as part of the Bangkok Fashion City Project, private sector
companies would organize a fashion carnival along Sukhumvit Road on 15
February. All department stories along the route, including Siam Discovery,
Central World Plaza, Amarin Plaza, Kaysorn Plaza, Emporium and Central
Chitlom, would cut the prices of designers’ label clothing by as much as
50 percent to mark the event, he said.
The Ministry of Industry declared the ‘Bangkok Fashion
City’ project officially open on February 12. (TNA)
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