Services can make up for trade slump, Somkid says

[webfact]

Services can make up for trade slump, Somkid says

By   PHUWIT LIMVIPHUWAT 
THE NATION

 

 

THAILAND must focus on strengthening its services sector to reap the full benefits of the tourist industry amid weakening global trade, said Deputy Prime Minister Somkid Jatusripitak. 

 

 “We are currently in a transition period between the current government and the new post-election government,” he said yesterday at a press conference after meeting with the management team of the Commerce Ministry. “At this point, it is crucial that the Ministry of Commerce keeps up its efforts to boost both external and internal trade to maintain the level of business sentiment in the country.”

 

Global trade has not yet recovered and this has damaged Thai exports, he said. This means the Commerce Ministry must further strengthen local trade and promote Thai goods to tourists in secondary cities, Somkid said. 

 

From January to February, exports contracted by 0.16 per cent year on year, according to the Commerce Ministry, which stated their value at Bt1.294 trillion. The Thai National Shippers’ Council (TNSC) expects exports in March shrank further, resulting in a likely first-quarter contraction of 1 per cent, according to TNSC chairman Ghanyapad Tantipipatpong.

 

 “Some 40 million tourists visit Thailand each year, with the largest portion coming from China,” Somkid said. “Chinese tourists have advanced their consumption habits to use e-payment when shopping both in their home country and overseas.”

 

Somkid has instructed the Commerce Ministry’s Department of Internal Trade (DIT) to make sure that stores in key tourist areas accept e-payment methods used by Chinese tourists, such as Alipay.

 

 “Thailand should also be looking to sell its goods in tourist areas abroad,” he said. “In other tourist cities around the world, the Commerce Ministry should launch projects to open ‘Thai stores’ that sell Thai goods and which support e-payment to boost exports of goods through tourism.”

 

Somkid also told the Commerce Ministry to closely monitor commodity prices in order to prevent unnecessary price hikes and prevent the price of agricultural goods from dropping further. 

 

Inflation was 1.24 per cent higher in March than the same month last year. The upward trend has continued for five straight months, driven mainly by the rising prices of fresh produce and oil, the Commerce Ministry reported.

 

The price of food and non-alcoholic drinks rose 2.38 per cent year on year in March, with prices in the transport and communication sectors increasing 0.76 per cent. The ministry’s Trade Policy and Strategy Office forecast that inflation will be between 0.7 and 1.7 per cent in 2019.

 

“The Commerce Ministry must be strict and take a strong stand against unnecessary rises in prices and hold the responsible parties accountable,” Somkid said.

 

Full story: http://www.nationmultimedia.com/detail/Economy/30367166

 

-- © Copyright The Nation 2019-04-05

[Fex Bluse]

1 hour ago, webfact said:

“Some 40 million tourists visit Thailand each year, with the largest portion coming from China,” Somkid said. “Chinese tourists have advanced their consumption habits to use e-payment when shopping both in their home country and overseas.”

 

Somkid has instructed the Commerce Ministry’s Department of Internal Trade (DIT) to make sure that stores in key tourist areas accept e-payment methods used by Chinese tourists, such as Alipay.

 

 “Thailand should also be looking to sell its goods in tourist areas abroad,” he said. “In other tourist cities around the world, the Commerce Ministry should launch projects to open ‘Thai stores’ that sell Thai goods and which support e-payment to boost exports of goods through tourism.”

All they ever talk about is Tourism. And, they want us to believe it accounts for only 10% of GDP. More like 25-30%.

 

Maybe they hate foreigners so much because they know they depend on them so much.

[Okis]

Can't wait for the tweaked out Thai tuktuk drivers to start popping up in places like gran canaria

[madmitch]

4 hours ago, webfact said:

Global trade has not yet recovered and this has damaged Thai exports

Nothing to do with the overvalued baht, then?

[Khun Paul]

Customer service from Airports to a small shop is almost non-existent and if they are xenophobic almost none . So how the hell can the services sector make up for the shortfall, not going to happen. Thais being good customer service people. Nope never going to happen. Why ..Thainess rules 

 

[Thechook]

 exports are down because the baht has been over valued and makes goods more expensive.  Predicting tourism will pick up the slack is nonsense, the high baht impacts on tourism just the same as exports.

[Caldera]

If they want to provide more services to tourists, how about *properly* studying foreign languages? I wonder how much business is lost thanks to "no have" and "sorry no understand" (and their Chinese equivalents).

[Khaeng Mak]

The slump is just getting started.  Won't be selling many services while there are tanks in the streets.

Edited April 5, 2019 by Khaeng Mak

[loong]

6 hours ago, Fex Bluse said:

“In other tourist cities around the world, the Commerce Ministry should launch projects to open ‘Thai stores’ that sell Thai goods and which support e-payment to boost exports of goods through tourism.”

Imagine the fun and games of a foreigner in Thailand wanting to open shops to sell produce from his country.

[fruitman]

8 hours ago, webfact said:

“Thailand should also be looking to sell its goods in tourist areas abroad,” he said. “In other tourist cities around the world, the Commerce Ministry should launch projects to open ‘Thai stores’ that sell Thai goods and which support e-payment to boost exports of goods through tourism.”

I've already spotted them abroad, they seem to be quite happy there and it's also great to get a real white skin...

[bowerboy]

4 hours ago, Khun Paul said:

Customer service from Airports to a small shop is almost non-existent and if they are xenophobic almost none . So how the hell can the services sector make up for the shortfall, not going to happen. Thais being good customer service people. Nope never going to happen. Why ..Thainess rules 

 

 

Absolutely spot on....just these 2 things could probably add 50% to retail and service revenue nationally:

 

1. Get the waitress to come to the table and ask if everything is ok and can she get you anything else.

 

2. Deprogram retail staff from screwing up their face and saying “mai mee” as an autoresponse.

 

Oh and you would get an automatic 10% uplift purely by asking retail staff not to give 10% discount on every sale when you have already made your purchasing decision and are at checkout waiting to pay! Would help also if it required less than 4 people to process the transaction but that is another story.

[Srikcir]

9 hours ago, webfact said:

THAILAND must focus on strengthening its services sector to reap the full benefits of the tourist industry amid weakening global trade

 

9 hours ago, webfact said:

“At this point, it is crucial that the Ministry of Commerce keeps up its efforts to boost both external and internal trade

External Trade.

Mentioned but not in any analysis in this article. Somkid is focusing it seems solely on internal Services, ie., related to tourism in Thailand, and completely misses the whole concept in terms of global trade. Not that I don't blame him because it's only internal services where Thailand can be competitive (albeit in some instances by restricting foreign competition and through price controls). Once beyond Thailand borders, Thailand's Service sector seems to me to be almost nonexistent with a few exceptions.

What counts as a Service sector outside of Thailand?

• financial, ie., savings, checking, loan and credit services (SCB does operate in seven Asian nations)
• know-how, ie., project, consultant and advisory services
• IT, ie., internet & cloud based software
• people-based service delivery (Kerry does operate in five Asian nations)

http://www.tradeready.ca/2016/trade-takeaways/service-exports-suddenly-important/

 

[rickudon]

Thailand's service sector is pretty patchy within its own borders.

 

Yesterday car went in for service at a Nissan main dealer (Nissan March). Told it needed a new radiator (not unexpected). But .... No have. Must get from Bangkok. And have to pay a deposit. Grumble, grumble. OK. Two hours later, get a phone call, Bangkok no have ... must order from Japan .... 4 weeks.

 

<deleted>. They make the Nissan March in Thailand! And do not have spare parts ......

 

Why Thailand has a long way to go to become a first world economy. And Nissan may just have lost a customer when i want a new car.

[robblok]

On 4/5/2019 at 11:22 AM, Father Fintan Stack said:

There may be trouble ahead
But while there's music and moonlight (moonlight and music) and love and
romance
Let's face the music and dance
Before the fiddlers have fled
Before they ask us to pay the bill, and while we still have that chance
Let's face the music and dance

People have been predicting trouble for ages hoping for better exchange rates and so on. I don't believe that it will happen. But for once I would love to be totally wrong.