BUSINESS NEWS
HEADLINES [click on headline to view story]: 

Wireless campuses planned

Auto air conditioners more environmentally friendly

Phuket’s IT City plan runs into problems

OIE backs development of petrochemical industry cluster

World oil prices expected to drop soon

US investigating allegations of Thai shrimp dumping

Laem Chabang port steps up security measures

Italian designer to help develop traditional Thai cloth for export

SET index likely to recover in near future

New strategies to boost textile industry

Southern land bridge project gets go-ahead

‘SME Express’ stores to open in PTT gas stations

Wireless campuses planned

Thailand plans to equip all the country’s universities with wireless facilities for computer networking. Under the scheme Thai university students would have access to world-wide databases and information anywhere, at anytime on campus – promoting modern e-learning.

Dr. Surapong Suebwonglee, the Information and Communications Technology Minister said that the ministry and Intel Co. had planned to install wireless facilities in eleven universities initially. The selected institutions would potentially become Thailand’s first wireless campuses.

The eleven campuses will be allocated six million baht each to install wireless connection points, or “Hot Spots” as they are called, throughout their campus areas. University students will be offered cheap notebook computers through a Ministry of Information, Communication and Technology (ICT) loan scheme which would allow students to pay for their computers by installments and at a low rate of interest.

The ICT committee is still finalizing the details of the plan. It is expected to be put before the cabinet in the near future for final approval. (TNA)


Auto air conditioners more environmentally friendly

The Thai government plans to make car air conditioners more environmentally friendly in the next five years. Under the government’s plan, the industry will have till 2010 to stop using CFCs in car air conditioners. Thailand plans to decrease the CFCs by 2010 in line with the Montreal Protocol, which Thailand has signed committing Bangkok to phasing out ozone depleting substances.

Workers in auto repair shops throughout the country will also be trained to help reduce the substance to protect the ozone layer. The Department has launched a scheme to train staff working in car repair shops to improve their knowledge and understanding of the use of CFCs in the automobile industry and the need to reduce them. Nearly 3,000 garages and repair shops are expected to participate in the program.

The first batch of auto repair workers from more than 1,000 garages started their five-month training in March. The next round of training will start again at the end of this year, and a further training session is scheduled for mid-2005.

Any auto repair shop which uses more than 80 kilograms per month of the refrigerant R-12 will be eligible to receive recovery and recycling machinery, worth 50,000 baht, to reduce CFCs discharged into the atmosphere. (TNA)


Phuket’s IT City plan runs into problems

The plan for the southern island resort of Phuket to become an information technology (IT) city has run into problems. “The government’s plan for Phuket to be an IT city won’t work unless the authorities can completely eliminate the blackouts in household power supplies,” the head of local tourism industry groups, Phatthanaphong Ekwanich, warned. Phatthanaphong urged the government to seriously look into the problem, as blackouts regularly occur during heavy rain and thunderstorms. (TNA)


OIE backs development of petrochemical industry cluster

The Office of Industrial Economics (OIE) is providing full support for the development of a strong petrochemical industry cluster in the East, saying that Thailand has comparative advantages over competitors in the region.

The office’s deputy director-general, Suchada Varaphorn, said the office has conducted a competitive benchmark study in the petrochemical industry field. He said they are aware of the growth potential in the industry, as Thailand has an abundance of natural gas resources that can be developed into raw materials for future petrochemical production.

Suchada said the office has prepared a petrochemical industry development plan focusing on increasing petrochemical production capacity and developing a strong cluster of petrochemical plants in the eastern region, where there is an abundance of natural gas. There are also sufficient transport facilities to accommodate the development.

The government also has plans to build a railway linking the region to southern China to give local producers access to Indochina.

Suchada said a study found that the local petrochemical industry is efficient in its production and distribution, and could compete with its overseas rivals. He said there are many projects that would accommodate industry expansion. Among them are the Bangkok Fashion City scheme, the World Food Kitchen Program, the Detroit of Asia Initiative, and the Development of Small- and Medium-sized Enterprises Project. (TNA)


World oil prices expected to drop soon

Oil prices on the world market are likely to drop soon, according to PTT Public Company Limited (PTT). PTT’s executive vice president, Apisit Rujikeatkamjorn, said the current oil price hike and fluctuation on the world market were not due to the shortage of supply, but the result of the speculation of oil funds. He, therefore, projected that prices of crude oil on the world market would decline in the near future.

“The current oil price hike and fluctuation are not caused by the shortage of supply, but by the speculation of oil funds. So, I believe the crude oil prices on the world market will drop soon, as the oil funds are expected to sell out the crude oil they have kept in stocks to take profits,” Apisit noted. “The Organization of Petroleum Exporting Countries has increased its total production of crude oil by 4 million barrels per day, to 29 million barrels per day. So, it’s no problem of oil shortage,” he pointed out. (TNA)


US investigating allegations of Thai shrimp dumping

The US government’s investigation into allegations of Thai shrimp dumping was scheduled to start at of July and is expected to be completed by the end of January next year. Thailand has been under investigation by the US government since January this year, along with China, Vietnam, India, Brazil and Ecuador.

US shrimp producers in six states have accused various kinds of Thai shrimp products, including frozen and canned shrimp and frozen shrimp dishes, of being sold in the US at an unacceptably low price. They accuse the Thai exporters of dumping the products on the US market and damaging the local industry.

US investigators are scheduled to visit Thailand and inspect each Thai shrimp export to gather information by the end of October.

The value of shrimp exports in the first five months of this year has fallen by nearly twenty per cent compared to the same period last year. This is the equivalent of more than twenty-two billion baht. The Department of Export Promotion and representatives of the private sector are working together to try to increase shrimp exports to high-potential markets including Canada, South Korea and Singapore to compensate for the loss of the US market because of the investigation. (TNA)


Laem Chabang port steps up security measures

The Laem Chabang Deep Sea Port Authority has begun training its staff and officers to cope with possible terrorist attacks. The training is part of the eastern Chonburi Province’s broader strategy to promote the Laem Chabang Deep Sea Port as one of the world’s leading international ports.

The port’s staff will be trained in advanced security measures used in port areas around the world, including techniques for screening goods containers and their cargoes. Experts from the US Coast Guard will show them how to assess the probability of the port being attacked, and how to increase the port’s readiness to counter this danger.

After the improvement of the port’s security measure, insurance premiums will be lowered for shipping, benefiting many transportation companies with lower costs. It will also give the Laem Chabang Deep Sea Port a good name for reliable service. (TNA)


Italian designer to help develop traditional Thai cloth for export

Indigo ‘mor hom’ cloth is the quintessential clothing of the northern Thai farmer - coarse, itchy and down to earth - but the Ministry of Commerce is flying Italian designers to develop the cloth with a view to export.

Speaking after talks with representatives from an Italian fashion consultancy group, Deputy Commerce Minister Pongsak Ruktapongpisal said that the Ministry of Commerce would hire the group to help modify the design of the traditional cloth, which would then be made into clothing for the export market.

Conceding that the main problem currently facing the cloth was its itchiness, the deputy minister said that ‘mor hom’ could be made more comfortable to wear and possibly produced in different colors. As ‘mor hom’ is generally produced by small communities, it is hoped that its promotion will bring extra revenue to local villages.

The Department of Export Promotion has been given the task of promoting the sale of ‘mor hom’ abroad, a pet project of Prime Minister Thaksin Shinawatra. The focus will initially be on the Asian market, where ‘mor hom’ cloth is already well known, with future markets likely to include Europe and America. (TNA)


SET index likely to recover in near future

The Stock Exchange of Thailand index is expected to begin recovering late next month or early September since many negative factors have eased, according to a leading brokerage house. Montree Sornpaisal, president and chief executive officer of Kim-Eng Securities Plc, said the SET index had fallen significantly in the first half of this year upon concern over the new outbreak of bird flu, upward interest direction, higher fuel prices, and anti-privatization protest by state enterprises’ labor unions.

“Given the improved operating performances of listed companies, the price/earning ratio of the market is now 10-10.5 times. The ratio is considered low, which means prices of many stocks are not high and the downside risk is low. So, it is a good opportunity for investors to buy and accumulate stocks when the index falls.”

He conceded the investor psychology remained wavering now and would take time to boost investor confidence. However, he believed the SET index would begin to turn around and continue to rally until early next year since many problems arisen in the first half had eased.

Montri admitted the fuel price rise would continue to discourage trading sentiment on the stock market. Still, he hoped the oil prices would decline to an equilibrium level soon. (TNA)


New strategies to boost textile industry

Thailand is planning new strategies to help develop the country’s textile industry and enable it to compete internationally, according to industry experts. Thailand’s textile industry needs to improve to reach internationally acceptable standards before the liberalization of the domestic textile industry at the beginning of next year in accordance with the World Trade Organization (WTO)’s regulations. The proposed scheme would promote domestic brands on the international market, and prepare Thai manufacturers to cope in a more competitive environment.

Director of Thailand’s Textile Institute Wirat Tandejanurat said new measures include developing the Thai textile industry’s management system with new technology, encouraging them to be more innovative, and persuading manufacturers to invest in more research and development.

Wirat said, “Thailand’s textile and fashion industry still needs more development since we are only used to manufacture products for foreign brands. Unfortunately, foreign investment has moved its production bases to China. So we simply cannot stick to the old ways of business. We need to develop and market our own brands to survive.”

Thailand’s Textile Institute hopes to help improve the Thai manufacturers’ marketing skills through its two-week micro-MBA course for the fashion industry, planned for next month. “They will have a chance to learn from international brand-name executives and fashion gurus from ELLE Magazine, Pasaya, Flynow, Toray International, and Central Stores,” Wirat said.

Thailand’s textile industry is expected to grow by some 10 percent next year. Of the current industrial output, valued at around 600 billion baht, around half is exported. (TNA)


Southern land bridge project gets go-ahead

The government has announced plans to proceed with the construction of the so-called Land Bridge Project in southern Thailand. The 28-billion-baht project includes building a 250-kilometer oil pipeline from Phang Nga to Nakorn Si Thammarat in the South. An oil refinery plant will also be built by 2010.

Onshore and offshore pipelines will be constructed deep underground to avoid any ecological and environmental problems. Once completed, the Land Bridge Project will become an alternative route for the transportation of oil from the Middle East to northern Asia. The pipeline will be able to carry 1.5 million barrels a day to both the local market and neighboring countries, as well as China, Japan, and South Korea.

The government has started talks with three of the largest oil consumers in the region - South Korea, China and Japan — and oil producers, including Oman, Kuwait and the United Arab Emirates (UAE).

Thailand is anxious to attract investment from these countries. All of them have shown interest in joint ventures and using the pipeline to transport oil. The project is an alternative oil transport route in the region since the Malacca Straits has become too crowded and there is a high risk of being hi-jacked by pirates. (TNA)


‘SME Express’ stores to open in PTT gas stations

The nation’s largest petroleum company is giving a leg-up to small and medium enterprises by opening ‘SME Express’ stores in gas stations across the country. PTT Plc director Abhisit Rujikiertikachorn has recently signed a deal with RTT SME Express, a private courier company.

The deal will make PTT the first such organization in Thailand to receive and distribute products made by local SMEs, including products made under the government’s One Tambon One Product (OTOP) scheme.

Abhisit said that the SME Express shops would be initially opened in 200 PTT gas stations by the end of August, with a view to expanding the eventual number of stores to 500.

“Participating PTT gas stations will gain 6,000 baht per month in additional revenue. If any PTT gas stations have free space, PTT will immediately provide a container-style room (for the stores)”, Abhisit said, predicting that the service would prove a hit with gas station owners and customers alike.

Initially the shops will sell food, herbs, traditional medicine, fabric and clothing, woodwork, rattan ware, glassware, ceramic ware, jewelry, and industrial components and spare parts. (TNA)