The Thai Economy Is In Crisis

[chownah]

Stop making fun of us Thai people We can grow rice or rubber tree to cover the cost. In England and US

unble to grow rice or rubber.

The US is the world third largest rice exporter behind Thailand (number 1) and Vietnam (number 2). If you want us to stop making fun of you then you should start getting your facts straight.

[highdiver]

wow what what a terrific dooms day party. Later on we'll get some fluid and embalm each other.

[A_Traveller]

Since this has become the economic news thread

Sin taxes increase

With immediate effect the price of locally-made liquor is raised between nine to 12 baht per bottle whilst that of locally-made cigarettes is raised by one to two baht per pack. The price of imported cigarettes, is increased by between two to three baht a pack.

Regards

PS No mention of imported liquor in report

Paraphrased from Bangkok Post

/edit typo+ PS//

Edited August 28, 2007 by A_Traveller

[Mid]

Since this has become the economic news thread

Sin taxes increase

With immediate effect the price of locally-made liquor is raised between nine to 12 baht per bottle whilst that of locally-made cigarettes is raised by one to two baht per pack. The price of imported cigarettes, is increased by between two to three baht a pack.

Regards

PS No mention of imported liquor in report

Paraphrased from Bangkok Post

/edit typo+ PS//

gotta love the rational on this one ,

wonder how that's going ??

[esbobes]

Stop making fun of us Thai people We can grow rice or rubber tree to cover the cost. In England and US

unble to grow rice or rubber.

The US is the world third largest rice exporter behind Thailand (number 1) and Vietnam (number 2). If you want us to stop making fun of you then you should start getting your facts straight.

I think you don't known the facts as the world known the facts.

America and EU out to start wars and pay illegal workers little money

Charge them high prices for homes and no medical.

Look around that's why somany farangs come to live in the great country of Thailand

Edited August 28, 2007 by esbobes

[bingobongo]

Stop making fun of us Thai people We can grow rice or rubber tree to cover the cost. In England and US

unble to grow rice or rubber.

The US is the world third largest rice exporter behind Thailand (number 1) and Vietnam (number 2). If you want us to stop making fun of you then you should start getting your facts straight.

I think you don't known the facts as the world known the facts.

America and EU out to start wars and pay illegal workers little money

Charge them high prices for homes and no medical.

Look around that's why somany farangs come to live in the great country of Thailand

so many farangs come to live in the great country of Thailand? are you kidding? half of those farangs who come can live well in Thailand, the other half who come to Thailand struggle to get by and eventually leave

more Thais leave Thailand to build better lives for themsleves than farangs who move to Thailand to escape themselves

Edited August 28, 2007 by bingobongo

[Carmine6]

Stop making fun of us Thai people We can grow rice or rubber tree to cover the cost. In England and US

unble to grow rice or rubber.

The US is the world third largest rice exporter behind Thailand (number 1) and Vietnam (number 2). If you want us to stop making fun of you then you should start getting your facts straight.

I think you don't known the facts as the world known the facts.

America and EU out to start wars and pay illegal workers little money

Charge them high prices for homes and no medical.

Look around that's why somany farangs come to live in the great country of Thailand

There's one little ray of sunshine on the Bangkok Post website. My ex-roommate 4 years ago insisted on jasmine rice and she was a picky eater. I actually wasn't familiar with it until then.

US: Bring on the jasmine, lots of it

Negotiations on expanding the fragrant jasmine (Hom Mali) rice market in the United States has produced better-than-expected successful results, according to the Foreign Trade Department (FTD).

FTD Director-General Apiradi Tantraporn said she led a delegation of state and private-sector representatives to California August 16-22 to negotiate for an expanded jasmine rice market and spread the word on Thailand's signature premium rice in Los Angeles.

The trip had ended with a greater degree of success than was earlier even hoped for, as the US agreed to import Thai jasmine rice in the largest amount yet, or 36 per cent of its total rice import through the Pacific gateway city before distributing it to different US markets.

Mrs. Apiradi said that three Thai exporters had reached agreements to sell 60,000 tonnes of jasmine rice worth $35.19 million to the US.

In addition, many exporters are in a process of negotiating to trade jasmine rice with US customers.

In the first seven months of this year, Thailand's rice exports to the US totaled 206,111 tonnes worth about $120 million or about 4.1 billion baht.

Of this, 190,553 tonnes or 92 per cent is jasmine rice, up 10,380 tonnes or 5.3 per cent from the same period last year

Should jasmine rice exports be promoted on a continual basis, she believed, Thailand's rice market in the US will grow even further. (TNA)

00:03 Aug 27, 2007

[Jai Dee]

SET chief asks BoT to end capital reserve measure

Stock Exchange of Thailand president Patareeya Benjapolchai on Tuesday revealed the exchange wanted the Bank of Thailand to end the 30 per cent reserve requirement since the measure could discourage foreign investors from investing in the open-ended Exchange Traded Funds (ETF).

She said many foreign investors had expressed interest to invest in the open-ended Thai Index SET 50 ETF, but remained hesitant because they are afraid their investment would be subject to 30 per cent withholding under the reserve control measure.

The ETF paper could be traded quickly as a stock. Its policy is to invest in stocks in the SET 50 Index and other stocks with strong fundamentals.

Mrs. Patareeya said she believed the BoT would respond to the SET request before unit investment trusts of ETF begin being traded on the market on September 6.

ETF certificates were available for subscription by local investors Aug 23-28, she said, adding that they drew much attention from the investors.

In the future, she said, SET would allow ETF to be traded on stock markets overseas.

The SET chief said the investment in the Thai stock market is bearish now with a daily trading value declining continuously because it had been affected by external factors, particularly concerns over the sub-prime lending woes in the United States.

Most investors had slowed their investment and adopted a wait-and-see attitude towards the market movement, she said.

Source: TNA - 29 August 2007

[Mid]

BOT keeps policy rate unchanged at 3.25%

Wed, August 29, 2007 : Last updated 15:36 hours

The Bank of Thailand's Monetary Policy Committee has left the 1-day repurchase rate unchanged on Wednesday at 3.25 per cent.

There were mixed views earlier on whether the central bank cut its policy rate in the MPC meeting today. Deputy Prime Minister Kosit Panpiemras has recently asked the central bank to cut rate to boost economy, while some market experts said there is no need to cut rate at present.

BOT assistant governor Suchada Kirakul said inflation is expected to remain low due to soft private spending, but saw higher financial risks from subprime crisis in the US.

- The Nation

[Prakanong]

Stop making fun of us Thai people We can grow rice or rubber tree to cover the cost. In England and US

unble to grow rice or rubber.

The US is the world third largest rice exporter behind Thailand (number 1) and Vietnam (number 2). If you want us to stop making fun of you then you should start getting your facts straight.

I think you don't known the facts as the world known the facts.

America and EU out to start wars and pay illegal workers little money

Charge them high prices for homes and no medical.

Look around that's why somany farangs come to live in the great country of Thailand

The EU starts war's????????

[Mid]

Public spending begins to improve in July: FPO

Wednesday 29 August 2007 03:28:38 PM (GMT+7:00)

BANGKOK, Aug 29 (TNA) – The public's spending began to recover more clearly in July as could be witnessed by a vehicle sale growth after shrinking in the first half of this year and an increase in the value-add tax collection, according to the Fiscal Policy Office.

snip

The service sector, particularly tourism, improved slightly with the number of foreign arrivals in Thailand in July contracting only 1.2 per cent against 2.4 per cent the month before.

snip

mcot.net

[samran]

Not nitpicky at all. Actually if I remember correctly, its a very complicated formula in all its glory. For purposes of simplicity, I tend to look at the three major pieces here and the point being is that if exports make up 70% then there really is only one major piece thats needs most of the attention.

you need to look at net exports, not exports.

Deduct the effect of imports from exports = net exports = roughly 10% of GDP in 1Q07. That is the important number.

[xbusman]

You know Samran, thats an interesting point. I always see exports listed variously as 60 percent to 70 percent of GDP. You are the only one who discusses net exports consisting of 10% of GDP. If exports make up 10% of GDP, and tourism accounts for about 7% of GDP, what makes up the other 83% of GDP or am I missing something in your argument?

[bingobongo]

maybe if LOJ (land of junta) focused on exporting rainbows and lollipops, all would be well.......not

given the bulk of ARMs in the US will reset in 2008 and 2009, exports will be affected........

Thai central bank keeps interest rate unchanged at 3.25 percent

'We are worried about a potential economic slowdown. If the subprime loan problems spread to other parts of the US economy, Thai exports to the United States would be seriously affected,' he said, referring to the US loan crisis.

http://www.forbes.com/afxnewslimited/feeds...afx4063665.html

[Solosiam]

You know Samran, thats an interesting point. I always see exports listed variously as 60 percent to 70 percent of GDP. You are the only one who discusses net exports consisting of 10% of GDP. If exports make up 10% of GDP, and tourism accounts for about 7% of GDP, what makes up the other 83% of GDP or am I missing something in your argument?

I'm dissapointed, Thats a very simple one... Consumption and Investment.

private consumption (spending on items such as food and clothing)

+ government consumption (spending on public sector salaries and so on)

+ investment (spending on houses, factories, and so on)

= final domestic demand

+ stockbuilding (increase in inventories)

= total domestic demand

+ exports of goods and services (foreigners' spending)

- imports of goods and services (spending abroad)

= GDP

Edited August 29, 2007 by Solosiam

[Mid]

BoT might crack down on debt collectors

Wednesday August 29, 2007

The Bank of Thailand is considering new rules to govern how financial institutions can collect debts following protests that credit card issuers were using heavy-handed tactics.

Krirk Vanikkul, a central bank assistant governor, acknowledged that debt collectors had become more aggressive in chasing down delinquent borrowers.

snip

The Post Publishing Public Co

[soundman]

You know Samran, thats an interesting point. I always see exports listed variously as 60 percent to 70 percent of GDP. You are the only one who discusses net exports consisting of 10% of GDP. If exports make up 10% of GDP, and tourism accounts for about 7% of GDP, what makes up the other 83% of GDP or am I missing something in your argument?

BOT GDP Figures:

Here.

You will notice that Item 5 is Export of Goods & Services & Item 6 is Less Imports of Goods & Services.

The other "83%" is made up mainly from Items 1,2 &3.

Cheers.

[soundman]

BoT might crack down on debt collectors

Wednesday August 29, 2007

The Bank of Thailand is considering new rules to govern how financial institutions can collect debts following protests that credit card issuers were using heavy-handed tactics.

Krirk Vanikkul, a central bank assistant governor, acknowledged that debt collectors had become more aggressive in chasing down delinquent borrowers.

snip

The Post Publishing Public Co

Anything wrong with that? I don't think so. Somebody borrows your money & fails to pay it back (more likely is to lazy to pay it back) & you want to let them off the hook? This is all this country needs: A bunch of lefties getting their hooks into the established power. Next they will be asking to lessen court sentences on murder & rape.

I say toughen the laws up against delinquent borrowers.

Cheers.

[Mid]

big picture bloke ,

news is the fact that it's needed .............................

[soundman]

big picture bloke ,

news is the fact that it's needed .............................

Absolutely!

Credit card debt & personal debt are at record levels. The general public think they can borrow with no finacial responsiblity. Everything is going OK - they keep up with the monthly repayments. Things fall in a hole & they cry poor.

Moral of the story - should have had more for-sight.

The good thing about loan contracts in Thailand is that you can charge all costs of collection to the person who borrowed the money & if they don't pay they (can) go to gaol.

Cheers.

[lazeeboy]

big picture bloke ,

news is the fact that it's needed .............................

Absolutely!

Credit card debt & personal debt are at record levels. The general public think they can borrow with no finacial responsiblity. Everything is going OK - they keep up with the monthly repayments. Things fall in a hole & they cry poor.

Moral of the story - should have had more for-sight.

The good thing about loan contracts in Thailand is that you can charge all costs of collection to the person who borrowed the money & if they don't pay they (can) go to gaol.

Cheers.

go jail,better keep up my visa repayments then

[LaoPo]

THAILAND: Investors shift garment plants to Vietnam

29 August 2007 | Source: just-style.com

Article summary:

Investors from Thailand are building textile, apparel and footwear plants in Vietnam, as they try to offset political instability and a currency crisis in their own country.

Sorry, I don't have access to the article itself, just the headline.

LaoPo

[Old Man River]

THAILAND: Investors shift garment plants to Vietnam

29 August 2007 | Source: just-style.com

Article summary:

Investors from Thailand are building textile, apparel and footwear plants in Vietnam, as they try to offset political instability and a currency crisis in their own country.

Sorry, I don't have access to the article itself, just the headline.

LaoPo

You don't have to. People in these industries have been moving out of Thailand for several years. Countries in Asia that are benefiting are those with cheaper labor costs, notably China and VN.

[Mid]

Thai Customs to revise export growth estimate

Thursday 30 August 2007 03:54:24 PM (GMT+7:00)

Thailand's Customs Department is poised to revise its export growth estimate after July data showed the country's exports expanding by only 5.9 per cent.

Director-General Chavalit Sethameteekul said many state agencies, including the ministries of commerce and finance, were monitoring and re-estimating their export growth projections upon finding that exports in July had dropped sharply from the previous month.

snip

MCOT Public Company Limited.

Edited August 30, 2007 by Mid

[Carmine6]

Thai Customs to revise export growth estimate

Thursday 30 August 2007 03:54:24 PM (GMT+7:00)

Thailand's Customs Department is poised to revise its export growth estimate after July data showed the country's exports expanding by only 5.9 per cent.

Director-General Chavalit Sethameteekul said many state agencies, including the ministries of commerce and finance, were monitoring and re-estimating their export growth projections upon finding that exports in July had dropped sharply from the previous month.

snip

MCOT Public Company Limited.

Also:

Shippers call for proactive BoT, Finance Ministry baht measures

BANGKOK, Aug 30 (TNA) – The Bank of Thailand and the Ministry of Finance must act more assertively with stronger measures in response to the baht's appreciation before more Thai factories are closed, according to the Thai National Shippers' Council, which warned of more factories on the edge of closure.

Council chairman Suchart Chantranakaraj said Thailand's export sector had been conspicuously affected by the stronger baht as could be witnessed by the country's export growth of only 5.9 per cent in July.

Although the volume of exports continues to increase, its value has declined due to the baht rise and stiffer competition....

snip

"Currently, many factories dare not tell the truth about the great (financial) difficulties they are facing because they are afraid of attracting too much attention from their creditors," Mr. Suchart said.

snip

Edited August 30, 2007 by Carmine6

[Mid]

"Currently, many factories dare not tell the truth about the great (financial) difficulties they are facing because they are afraid of attracting too much attention from their creditors," Mr. Suchart said.

istockphoto.com

[soundman]

"Currently, many factories dare not tell the truth about the great (financial) difficulties they are facing because they are afraid of attracting too much attention from their creditors," Mr. Suchart said.

There is far more truth to this comment than everybody realises. Every business I am associated with is doing it tough at the moment.

[xbusman]

I use three Thailand shippers regularly. All three made appointments this week and sent in a pooyai to "chat". Appears their business is off somewhere around 20% down over last year and they are calling out the big guns to shake the bushes. These folks dont ship for the big guys, companies like Toyota have their own shipping, but they ship for the small to medium size businesses, the kind that make up the bedrock of an export economy.

[bingobongo]

did anyone happen to catch this from the Monthly Economic Report for July from the Fiscal Policy Office?

but who cares as long as there is som tham...........healthy economy my a@@, if the gvt wasnt there to prop it up, it would be worse than it already is

-"Fiscal indicators showed that government's budget disbursement in July 2007 played a vital role in supporting the Thai economy when domestic demand remained in a slowing pace. In July, budget disbursement amounted to 146.2 billion baht, growing at a high rate of 48.2% (y-o-y)"

Edited August 30, 2007 by bingobongo

[highdiver]

definatly a crisis. in thailand...