Exports fall across key industries

By THE NATION

 

Kanit Muangkrachang

 

Despite a 2 per cent fall in total Thai exports in the first eight months year-on-year, the Ministry of Commerce expects the industry to post growth of 3 per cent for 2019.

 

Kanit Muangkrachang, president of Thai Electrical, Electronics and Telecommunication Industries Association under the Federation of Thai Industries (FTI), said exports of electrical and electronic products should rise in the final quarter, but it would still be in the negative territory for 2019.

 

“The on-going US-China trade war has dampened the global economy and reduced consumers' spending power,” Kanit said , adding that “ amid technological advancement, many entrepreneurs have adjusted their businesses models by reducing production capacity or the number of workers to cope with the unpredictable market conditions and technology disruption.”

 

Much like the electronic sector, most of the jewellery factory owners have reduced their capacity in response to the slowdown in global trade.

 

“Exports from January to August was in deficit, but the turnover should break even for the year” according to a source.

 

Meanwhile, president of Thai Rice Exporters Association Chookiat Ophaswonse said total rice exports in the first three quarters amounted to 6 million tonnes, way below the 9 million-tonne target, mainly due to the strong baht making Thai prices higher that of its competitors.

 

The situation does not look good for food exporters either with Visit Limlurcha, president of Food Processing Industry Association, saying that the total value of food exports in the first eight months fell 2 per cent to Bt68.7 million from the same period last year.

 

“Besides, some food producers are facing shortage of ingredients due to drought, leading to drops in production capacities,” said Visit.

 

Source: https://www.nationthailand.com/news/30376948

 

-- © Copyright The Nation Thailand 2019-10-01

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2 minutes ago, snoop1130 said:

Despite a 2 per cent fall in total Thai exports in the first eight months year-on-year, the Ministry of Commerce expects the industry to post growth of 3 per cent for 2019.

Someone must live in cuckoos land..........ooops I forgot, this is cuckoos land

12 hours ago, snoop1130 said:

“Exports from January to August was in deficit, but the turnover should break even for the year” according to a source.

So, the 0% that nearly all of us non-Thai nationals not in the know predicted rather than the 3-5% the Thais in the know predicted. Seems they should be using our expat guessing rather than their expert data !

Keep the good news coming that exports are hurting.

What makes them think that the exports will recover? Sounds like sheer guesswork. As people discover competitor's prices are now lower, surely more buyers will make the switch and Thailand's exports will get worse over the rest of the year, not better.

13 hours ago, snoop1130 said:

Exports fall across key industries

A may they never recover. Amen.

13 hours ago, snoop1130 said:

“The on-going US-China trade war has dampened the global economy and reduced consumers' spending power,”

Relieved to hear it had nothing to do with retarded immigration bureaucracy and a general sense of hostility towards Westerners making Thailand a less attractive place to do business.
 

 

13 hours ago, snoop1130 said:

“ amid technological advancement, many entrepreneurs have adjusted their businesses models by reducing production capacity or the number of workers to cope with the unpredictable market conditions and technology disruption.”

Good to know that technological advancement is also to blame. Oh, if only there were some way to harness this horrifying phenomenon and use it to create jobs and exports. Oh well, at least they have managed to clear out all those weird digital nomads who were threatening to turn Chiang Mai into the leading international hub for mobile workers.

Thailand. You would have to have a heart of stone not to laugh as all the consequences of governmental arrogance and idiocy over the past 5 years come home to roost.

 

Edited October 2, 20196 yr by donnacha

13 hours ago, snoop1130 said:

Despite a 2 per cent fall in total Thai exports in the first eight months year-on-year, the Ministry of Commerce expects the industry to post growth of 3 per cent for 2019.

It seems the strong baht has really stuffed rice exports which once were Thailand's national export pride. Their Chinese best mates haven't help by flogging off their excess rice stocks to Thailand's traditional African customers. Plus the drought would not have helped. In the meantime Vietnam is improving their rice quality while picking off their traditional markets on price.

Of course the usual suspect gets the blame the China/Us trade spat but I read in other reports that EU politics and Brexit have now been added to their list of excuses. 

The great leader Khun Prayut Chan-o-cha seems helpless in stopping this export decline.

Eeyore could have some good advice for him. 

 

13 hours ago, snoop1130 said:

Despite a 2 per cent fall in total Thai exports in the first eight months year-on-year, the Ministry of Commerce expects the industry to post growth of 3 per cent for 2019.

On what grounds is this optimism based?  Why will the next four months suddenly improve?

1 hour ago, SteveK said:

What makes them think that the exports will recover?

Because the PM will order the economy to recover. Everyone happy happy. 

46 minutes ago, Cadbury said:

Their Chinese best mates haven't help by flogging off their excess rice stocks to Thailand's traditional African customers.

And those customers discovered that THEY can grow rice, building up eventually to national sustaining quantities without requiring expensive imported rice. Nigeria is a case in point using the same measures as Thailand for domestic rice production: government subsidies and soft loans.

https://www.bbc.com/news/business-47858725

7 hours ago, Tayaout said:

Because the PM will order the economy to recover. Everyone happy happy. 

Actually with the most important one the setting up of a committee is his first response.....

30 minutes ago, petermik said:

Actually with the most important one the setting up of a committee is his first response.....

A committee of which he of course will be Chairman.

A Thai government committee is one where the objective is not to reach a decision but to avoid making one.

They live in hope...not in reality .......it's the THB ...stupid.

regards worgeordie

Some day the government will realize that ChiComs are not Thiland’s best friend—and to open up to the world markets instead.  Start by eliminating hot money foreign inflows, and lower interest rates.