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Government confident
of 20% growth despite US$3 billion deficit
Thai exports grew by 23 percent in September this year
but in the overall picture of trade for the whole nine months, Thailand is
still suffering a US$7.4 billion trade deficit, but the overall deficit for
2005 could hit US$3 billion, according to the Ministry of Commerce.
Speaking after chairing a workshop on international trade
strategy, Deputy Prime Minister and Commerce Minister Somkid Jatusripitak
said following concerted measures by both public and private sectors, Thai
exports improved in September, earning the country US$10.4 billion in
revenue, up by 23 percent from August. In the same period, Thailand imported
US$ 9.6 billion in goods and this translates to a US$820 million surplus in
trade surplus. Dr. Somkid is optimistic that Thai exports will increase in
value and help to offset the trade deficit during the remaining three months
of 2005.
Permanent Secretary for Commerce Karun Kittisataporn said
in the first nine months of 2005, Thailand exported US$82 billion worth of
goods, up 16 percent from the same period last year. Top performing sectors
for exports were industrial and agricultural goods.
From January to September this year, Thailand’s imports
totaled US$89.4 billion, up nearly 28 percent over the same period in 2004.
Given these figures and projections, Thailand is likely
to meet its target of expanding exports by 20 percent, or nearly US$116
billion in 2005, said Chantra Purnariksha, director-general of the Export
Promotion Department. The Ministry calculates that Thailand will export, on
average, at least US$10 billion worth of goods per month from October
through December 2005.
On Thailand’s international trade strategy, Dr. Somkid
said the Ministries of Commerce and Foreign Affairs must work in concert and
stop their rivalry in order to help expand goods for Thai export. (TNA)
BOT to raise estimated economic growth rate for this year
The Bank of Thailand (BOT) will raise the country’s
estimated economic growth rate for the entire 2005 year, thanks to improving
economic prospects in the second half of this year.
A member of the BOT’s Monetary Policy Committee (MPC),
Krirk-krai Jirapaet, told journalists that the central bank would increase
the projected Thai economic growth rate for this year to at least 4 percent,
from 3.5 percent in its earlier forecast in July.
The upward adjustment of the Thai economic growth
projection, to be published in the BOT’s October report on the projected
inflation, was due to improving key economic indicators, including the
country’s rising exports, tourism revenue and official reserves, as well
as better figures in its balance of trade and current accounts, he noted.
Krirk-krai, who was a former top Thai commercial envoy
overseas, said that the hike of the central bank’s 14-day repurchase rate
(repo) by 0.50 percent earlier this week would help curb inflation and
stabilize the Thai economy.
“The BOT will take care of both the country’s
economic stability and growth concurrently,” he noted.
In July, the central bank estimated that the Thai economy
could grow 3.5-4.5 percent this year. “The new estimated growth rate will,
however, begin from 4.0 per cent and higher,” said Krirk-krai. Meanwhile,
BOT Governor M.R. Pridiyathorn Devakula said that the recent repo hike would
not affect the value of the Thai baht.
“The BOT has closely monitored the Thai baht. The Thai
currency is now considered stable and moves normally in accordance with the
market mechanism. The recent repo hike does not affect the Thai currency; so
the BOT sees no need for any intervention,” said the BOT chief. (TNA)
Industry Ministry action plan responds to stringent EU import standards
The Industry Ministry is preparing guidelines to help
Thai industries conform with stringently enforced European Union (EU) import
standards. Permanent Secretary for Industry Chakramon Pasukvanich said he
has assigned the Office of Industrial Economics to work with other relevant
agencies in drawing up a set of measures to accommodate the enforcement of
various industrial standards by the EU. These standards, to be gradually put
into force by the EU, will have an impact on the competitiveness of Thai
industries, particularly goods in the chemical sectors.
The so-called road map to be drawn by the Office of
Industrial Economics will include a plan of actions and what designated
agencies are in charge. Upon completion by the end of this month, this road
map will be presented for the Cabinet approval. Chakramon said Thailand must
develop industry standards that are on par with those applied by the EU,
which are chiefly aimed at guaranteeing consumer safety. This means the Thai
private sector will have to adjust.
The Ministry of Industry is analyzing what specific Thai
industrial sectors will be affected by the EU measures and to what extent.
The so-called road map must offer practical solutions.
Chakramon said five key elements underpinning the plan to
improve Thai industrial competitiveness include building awareness among
operators and the domestic market, consultancy and monitoring of regulatory
movements in the EU, development of infrastructure such as specialized
laboratories for medicine, recycling of industrial and other wastes, and
capacity building among operators and defining environmental standards for
Thai products.
Chakramon adds that more and more countries are inclined
to enforce stricter standards for industrial goods. For instance the US, EU
and Japan are giving more emphasis to energy efficiency or industrial waste
management. Thai industrialists must be more attentive to building
confidence among foreign buyers by not producing substandard goods, he said.
(TNA)
Commerce Ministry poised to use
5 industries to spearhead Thai exports
The Commerce Ministry is poised to adjust a strategy to
make five main industries, including jewelry, textile, food, and software,
become a spearhead of penetrating Thai products into export markets.
Delivering a keynote speech on “Global Economic Trend:
Why Do Thai Businesses Need to Enhance Competitiveness,” Suvit Mesinthee,
vice minister for commercial said that the adjustment of the strategy would
be carried out within 3-5 years as instructed by Deputy Prime Minister and
Commerce Minister Somkid Jatusripitak.
Workshops would be organized in each industry group to
survey what the private sector wants and find key factors to success, he
said.
Suvit suggested that local entrepreneurs jointly push for
an increase in production outputs to meet the global level.
He said the government had supported the world-class
competition strategy by joining hands with other member countries of the
Association of Southeast Asian Nations (ASEAN) to penetrate the group’s
products into the global market. Under the cooperation, the strength of the
10-member ASEAN will be pooled.
Raw materials in Cambodia, Myanmar, Laos and Vietnam will
be brought for production in Thailand, Indonesia and Malaysia. Then,
Singapore will use its service skill to penetrate finished products into the
world market.
Under the strategy, ASEAN products will be in a position
to compete with those in Europe, the United States and China.
Suvit said Thailand has the potential to become an ASEAN
leader if the private sector cooperates with the government to promote the
country as a gateway for the region. (TNA)
IEAT to promote 3 industrial estates for new Suvarnabhumi city
The Industrial Estate Authority of Thailand is keen to
promote an industry hub around Suvarnabhumi airport in line with the
government’s plan to build a special administrative zone there. IEAT
Governor Uthai Jantima said IEAT will hold talks with the developers of
three industrial estates located within what is set to become the
Suvarnabhumi special administrative zone around the new international
airport. They are Bang Kapi, Lat Krabang and Anyathani industrial estates.
The idea is that the IEAT, together with these
developers, join hands to build an industrial hub to attract global
investors to use Thailand as their manufacturing hub with easy access to
transport provided by the Suvarnabhumi Airport. Uthai said he is confident
that the hub can be on par with Singapore and Hong Kong.
Foreign investors have already shown keen interest and
IEAT will build infrastructure for factories operating in the area, said
Uthai, adding that IEAT would like to create a one-stop-service to
facilitate investment activities.
In addition to the three estates in the immediate
proximity, the Amata Industrial Estate in Chonburi also stands to benefit
from the official opening of the Suvarnabhumi Airport next year, he said.
(TNA)
Investment in construction to grow over 10% until 2007: KRC
State-supported investment projects will make
Thailand’s overall investment in construction grow more than 10 percent
annually until 2007, according to the Kasikorn Research Center (KRC).
The leading think tank projected on Monday that the
overall investment in construction for this year would grow approximately 12
percent, down slightly from 13 percent last year, with total investment
amounting to 705 billion baht, compared with 600.04 billion baht in 2004.
In the second half of this year, investment by the
private sector would expand at a stable level of 7.3 percent, compared with
9.4 percent in the first half, said the KRC. The decline is attributed to a
slowdown in the country’s property business, particularly the demand for
housing units.
KRC said investments in construction by the public sector
is likely to expand 16 percent against 14.1 percent in the first half,
boosted by an acceleration of the budget disbursement by state agencies.
It is also projected that the slowdown in the property
business may continue next year on the upward interest rate direction.
However, the expected decline in inflation rates and higher economic growth
might boost investment confidence in the business, noted the Bangkok-based
research house.
KRC projected that private-sector investment in
construction next year would expand 8 percent, close to the level of this
year, while state-supported investment in construction would grow more than
20 percent, compared with 15.7 percent this year. This will result in
overall construction investment growth of around 15 percent, with a total
investment of 850 billion baht.
The think tank believes that state-supported investment
projects would drive construction investment growth to average more than 10
percent through to 2007. It will then decline in 2008 and 2009 when
investment in mega-infrastructure projects phase out.
KRC estimated that the country’s overall construction
investment would average one trillion baht per year during 2007-2009, or an
average growth of 4 percent per year. (TNA)
Cross-border trade with Laos flourishes at Loei
Cross-border trade between Thailand and Laos has improved
dramatically since the opening of permanent checkpoints and a friendship
bridge.
Khoonchai Chaiyachat, a Loei provincial commercial
counselor, said that Thailand exported Bt 818 million (US$20.5 million) and
imported Bt 914 million (US$23) worth of goods during the 2005 fiscal year
which ended Sept 30. This represents a 72 percent increase compared to the
value of trade during the previous fiscal year.
Increased trade is, in part, attributed to the opening of
permanent border checkpoints at Tha Li, Pak Chom and Chiang Khan, as well as
of the Namhueng Thai-Lao Friendship Bridge.
Key export goods from the Thai side include vehicles and
parts, consumer goods, and construction materials. Major items exported from
Laos are wood and agricultural products, especially corn as Thai investors
and agencies have been active in contract-farming of over 200,000 rais of
plantations in Laos. Khoonchai added that a sizeable amount of goods is also
trans-shipped to third countries.
Cross-border trade at this sector of the Thai-Lao border
is projected to increase, although rising oil prices impacting transport
cost will remain a major risk factor, he said. (TNA)
- ADVERTORIAL -
BUPA supplies sunshine to its expanding Pattaya Branch
With the Christmas and New Year tourist holiday season
fast approaching, BUPA - Thailand’s leading provider of medical health
services - is boosting activity at its beach-side Pattaya branch.
BUPA has introduced its ‘Sunshine Plan’, aimed at
non-Thai nationals enjoying the winter in Thailand.
 Sunshine
First at BUPA Pattaya with Donna Pollard and the team.
This unique package provides comprehensive cover for six
months in Thailand. Members are covered for hospitalisation resulting from
accident or sickness for up to one million baht per disability. The package
also includes repatriation and repatriation services.
For short term visitors staying up to 90 days,
embassy-approved travel health insurance is also available.
Local companies and families are also increasingly taking
up BUPA’s wide range of benefits options - ranging from 300,000 baht up to
five million baht per disability (starting from as little as 10 baht per
day). (Provided a BUPA member joins before the age of 60 years, renewal is
guaranteed for life.)
To help customers select the cover most suitable for
their circumstances, BUPA has employed a highly experienced British nurse,
Donna Pollard, who specialized in oncology (cancer) nursing during a career
with the National Health Service and BUPA in the U.K.
“Many visitors to the Kingdom over the festive period
simply do not realise that their ‘home’ coverage may not be valid in
Thailand, so remain at risk in the event of any mishap, especially those
accidents which invariably happen at crowded coastal resorts,” said Donna.
Donna’s major duty is to screen all member
applications, or provide consultation on a ‘walk-in’ basis (where free
blood pressure checks are available).
“It is also a big task for me to ensure which
particular hospital is suitable to match a patient’s health benefits and
condition. We contact directly the hospital of choice, and make all
arrangements before the BUPA member is admitted, even visiting them to check
on their well-being.”
The company has recently promoted Ororat
Tharongveerachart to branch manager. The previous manager, Kamolthat
Soonthornsarathool was recently promoted and re-located to BUPA’s head
office.
The BUPA Pattaya branch, which opened in December 2000,
currently has a staff of six professionals looking after 3,000 customers,
many of them ex-pats.
“BUPA hopes everyone in Pattaya has a safe and happy
stay, but it is re-assuring that our expert services and facilities are
on-hand at any time. Drop in for a cup of tea and a chat. You will receive a
very ‘Sunny Greeting!,” invites Donna.
The BUPA Pattaya branch is located on the junction of Sukhumvit and North
Pattaya Road. For further information: BUPA Pattaya Phone: (038) 370-880-4,
email: [email protected]. Visit BUPA web site at
http://www.bupathailand.com
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