The Thai Economy Is In Crisis

[Solosiam]

err...

Thats not how it is calculated, GDP consideration for exports is a NET amount, i.e you take imports off of the impact of exports when accounting for the effect on GDP.

The formulae for GDP is this.

Personal Consumption:

-- Durable goods (items expected to last more than three years)

-- Nondurable goods (food and clothing)

-- Services

Government Expenditures:

-- Defense

-- Roads

-- Schools

Investment Spending:

-- Nonresidential (spending on plants and equipment), Residential (single-family and multi-family homes)

-- Business inventories

Net Exports:

-- Exports are added to GDP

-- Imports are deducted from GDP

simplified it is; GDP = Consumption + Government Expenditures + Investment +Exports - Imports

For clarification the GDP growth that Thailand is talking about is in CONSTANT DOLLAR terms, the exchange rate and inflation differences are irrelevant.

[Mid]

as you wish ,

I'll go with the State Dept .

[xbusman]

Well I often wonder about that magic 60 to 70 percent of GDP number. Everyone quotes it, from Bloomberg to the BOI to the BOT. I have reviewed the GDP calculations and found what appears to be a disparity there. The only answer that came to me was that they are using net exports to calculate the 60% of GDP. Perhaps they have a way of backing out imports that are exported again as finished goods and eliminating them from the net export calculations.

I want to believe that BOT, CIA Factbook, BOI, Bloomberg are all wrong. That exports are only say 10% of GDP when netted out. That would mean Thailand is not an export based economy and the baht has little to no effect on the business health of the country. That shrinking exports are irrelevant and can be compensated for with a single highway or one or two Japanese factories. Somehow though, that does not ring true.

Old Man River, you might be right about selling in USD but what does that matter. My books are in Thai baht, I buy in Thai baht, I invoice in dollars but the amount that is transferred is immediately converted into Thai baht when arriving. So I can ship less goods and actually increase the invoice amount when billing in US dollars. By adding currency exchange into the equation, no matter what currency, it obscures the actual measure of goods and services. The only way to know actual volumes of exports is to measure it in home currency.

For clarity, lets take it to an extreme. If I make a widget at $1 and sell it to the US, and next year, because my currency has appreciated 1,000,000 percent (lets say war time germany or zimbabwe currently) and that widget cost $1,000,000. Did my GDP grow if I sold one widget again this year? The only answer is no, GDP did not grow but it is growing in US dollar terms. Now if this were a US denominated country such as Cambodia is, then I might be able to learn something from those numbers. However, in Thailand, its the baht baht baht.

We keep going over this on this thread. It would be easy to swallow the government line, I am sure they would like us to. I think we need to look harder at the data and see if our beloved junta is not propagandizing anything and I see no good reason to confuse our export numbers with a foriegn currency factor of any account. Maybe someone here might know a good reason to do so. As far as I know, the US might be slightly larger than Japan as a trading partner but still is well under half the export market.

They may not be using the US dollar to confuse the issue, but I dont think we should so blindly accept the data without reviewing it ourselves. Again, I think they should measure GDP in Zimbabwe dollars so we can all be happy.

[Solosiam]

Exports account for a fairly small percentage of GDP, I don't see why people are so focussed on exports whilst talking about GDP.

ECONOMY

The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of GDP in 2006.

state.gov

As usual, solosiam shows his ignorance once again!

I quoted the textbook standard DEFINITION of GDP, go and look it up anywhere and that is the formula.

It was defined by the EU, IMF, World Bank and United Nations amongst others.

[Solosiam]

Well I often wonder about that magic 60 to 70 percent of GDP number. Everyone quotes it, from Bloomberg to the BOI to the BOT. I have reviewed the GDP calculations and found what appears to be a disparity there. The only answer that came to me was that they are using net exports to calculate the 60% of GDP. Perhaps they have a way of backing out imports that are exported again as finished goods and eliminating them from the net export calculations.

I want to believe that BOT, CIA Factbook, BOI, Bloomberg are all wrong. That exports are only say 10% of GDP when netted out. That would mean Thailand is not an export based economy and the baht has little to no effect on the business health of the country. That shrinking exports are irrelevant and can be compensated for with a single highway or one or two Japanese factories. Somehow though, that does not ring true.

Old Man River, you might be right about selling in USD but what does that matter. My books are in Thai baht, I buy in Thai baht, I invoice in dollars but the amount that is transferred is immediately converted into Thai baht when arriving. So I can ship less goods and actually increase the invoice amount when billing in US dollars. By adding currency exchange into the equation, no matter what currency, it obscures the actual measure of goods and services. The only way to know actual volumes of exports is to measure it in home currency.

For clarity, lets take it to an extreme. If I make a widget at $1 and sell it to the US, and next year, because my currency has appreciated 1,000,000 percent (lets say war time germany or zimbabwe currently) and that widget cost $1,000,000. Did my GDP grow if I sold one widget again this year? The only answer is no, GDP did not grow but it is growing in US dollar terms. Now if this were a US denominated country such as Cambodia is, then I might be able to learn something from those numbers. However, in Thailand, its the baht baht baht.

We keep going over this on this thread. It would be easy to swallow the government line, I am sure they would like us to. I think we need to look harder at the data and see if our beloved junta is not propagandizing anything and I see no good reason to confuse our export numbers with a foriegn currency factor of any account. Maybe someone here might know a good reason to do so. As far as I know, the US might be slightly larger than Japan as a trading partner but still is well under half the export market.

They may not be using the US dollar to confuse the issue, but I dont think we should so blindly accept the data without reviewing it ourselves. Again, I think they should measure GDP in Zimbabwe dollars so we can all be happy.

I believe that the measurement used in these circumstances is a CONSTANT DOLLAR calculation, that is inflation etc... are not used in calculating change from a previous year.

[Carmine6]

Exports account for a fairly small percentage of GDP, I don't see why people are so focussed on exports whilst talking about GDP.

ECONOMY

The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of GDP in 2006.

state.gov

As usual, solosiam shows his ignorance once again!

I quoted the textbook standard DEFINITION of GDP, go and look it up anywhere and that is the formula.

It was defined by the EU, IMF, World Bank and United Nations amongst others.

Exports and net exports are different figures, so saying exports account for a fairly small percentage of GDP is wrong. The net exports figure is a fairly small percentage of GDP, but imports do not negate the export activity.

In reality it would be more accurate to break up and net the import figures against consumer spending, government spending, and exports. For example a consumer or government purchase of an imported product is closer to a net 0 contributor to GDP than offsetting an export that is completely unrelated. For convenience it is netted against the exports only, but Thailand isn't as pure a trader as a Hong Kong is. There, the net figure is a bit more relevant since things come in and go right out in the same form.

Edited September 12, 2007 by Carmine6

[LaoPo]

(Thailand) + Indonesian Coal Mining Shares Surge as China Exports Decline

Sept. 13 (Bloomberg) -- Coal producers in Indonesia and Thailand are booming, and so are their shares, as larger competitors in China turn from exporting to supplying the domestic market.

China became a net importer of coal for the first time this year. Japan and South Korea also are turning to Jakarta-based PT Bumi Resources and Thailand's Banpu Pcl, both with mines in Indonesia, the biggest source of power-station coal.

``Coal is a very new sector and that's because of the structural change in China,'' said Badung Tariono, who manages the $647 million ABN Amro Energy Fund in Amsterdam and holds Bumi shares. ``If you believe in the China story and demand for energy will grow in line with the economy, it's a no-brainer.''

While Bumi shares have more than tripled in value this year, investors say there is plenty of room for further gains because they are still cheap. Bumi, Asia's third-largest coal producer by sales, and rival Banpu, Thailand's biggest coal miner, are valued at less than half the industry average.

Continues here:

http://www.bloomberg.com/apps/news?pid=206...r=world_indices

Note:

OK Gents, start buying, I won't even charge commission; just buy me a beer

Oh, yes, don't complain anymore I only bring negative news, ok?

LaoPo

[Old Man River]

Old Man River, you might be right about selling in USD but what does that matter. My books are in Thai baht, I buy in Thai baht, I invoice in dollars but the amount that is transferred is immediately converted into Thai baht when arriving. So I can ship less goods and actually increase the invoice amount when billing in US dollars. By adding currency exchange into the equation, no matter what currency, it obscures the actual measure of goods and services. The only way to know actual volumes of exports is to measure it in home currency.

Xbusman, re-read what I wrote!

"While I also think that using the local currency is best when comparing Thai exports against Thai exports in different periods, it is worthy to mention that the vast majority of Thailand's exports are USD denominated, so using USD's as the base doesn't bias the figures as much as it would appear."

In a past posting in another thread you mentioned that if a foreign currency was to be used for comparative purposes, then you would want Yen instead of USD's. Whether this matters or not to your final conclusion here is academic. The comment you made was incorrect. Since you like to analyze things, at some point this info will be helpful to you.

[cclub75]

Back to the topic.

"Total advertising spending in the first eight months of this year showed a marginal increase of 0.71%, with media agencies saying that the industry would very likely show zero growth by year-end.

''[Growth of ad spending] would even be negative if we take ad [rate] inflation into account,'' said Wannee Ruttanaphon, chairwoman of the media buying agency Initiative. "

The country's advertising industry generated billings of 88 billion baht last year. According to Nielsen Media Research, ad spending through all media was worth 59.3 billion baht from January to August, compared to 58.9 billion baht in the same period last year.

"If we take" ? That's ironic.... We have indeed a negative growth, yes, because of the inflation.

Advertising is linked to consumption. Consumption is depressed in Thailand, therefore it's not a surprise. Just a confirmation... of the crisis.

Bangkok Post

[highdiver]

Exports account for a fairly small percentage of GDP, I don't see why people are so focussed on exports whilst talking about GDP.

ECONOMY

The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of GDP in 2006.

state.gov

As usual, solosiam shows his ignorance once again!

I quoted the textbook standard DEFINITION of GDP, go and look it up anywhere and that is the formula.

It was defined by the EU, IMF, World Bank and United Nations amongst others.

you are 100% right.

but the dooms day brigade is not interested in understanding facts...

its easier to "cut and paste" from news papers and add an ingnorent remark then to realy understand what is GDP.

[highdiver]

Back to the topic.

"Total advertising spending in the first eight months of this year showed a marginal increase of 0.71%, with media agencies saying that the industry would very likely show zero growth by year-end.

''[Growth of ad spending] would even be negative if we take ad [rate] inflation into account,'' said Wannee Ruttanaphon, chairwoman of the media buying agency Initiative. "

The country's advertising industry generated billings of 88 billion baht last year. According to Nielsen Media Research, ad spending through all media was worth 59.3 billion baht from January to August, compared to 58.9 billion baht in the same period last year.

"If we take" ? That's ironic.... We have indeed a negative growth, yes, because of the inflation.

Advertising is linked to consumption. Consumption is depressed in Thailand, therefore it's not a surprise. Just a confirmation... of the crisis.

Bangkok Post

[Mid]

Exports account for a fairly small percentage of GDP, I don't see why people are so focussed on exports whilst talking about GDP.

ECONOMY

The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of GDP in 2006.

state.gov

As usual, solosiam shows his ignorance once again!

I quoted the textbook standard DEFINITION of GDP, go and look it up anywhere and that is the formula.

It was defined by the EU, IMF, World Bank and United Nations amongst others.

you are 100% right.

but the dooms day brigade is not interested in understanding facts...

its easier to "cut and paste" from news papers and add an ingnorent remark then to realy understand what is GDP.

lookie here ,

highdiver knows more / better than the US Dept of State ...................who would of thought

asonsanders.com

[LaoPo]

Tong Herr to expand production capacity in Thailand

BUTTERWORTH: Stainless steel fastener maker Tong Herr Resources Bhd (from Malaysia, LP) plans to expand production capacity at its Thailand operations next year.

Executive director Tan Ban Leong said the group would invest about RM30mil in the expansion exercise that would increase the maximum production capacity of the Chonburi plant to 15,000 tonnes per annum from the present 7,000 tonnes.

“The expansion exercise is to meet the needs of our customers in the US. We expect our yearly production in Thailand to grow to 10,000 tonnes per annum in 2009 from the present 6,000 tonnes,” he told StarBiz.

“The exercise should start in early 2008 and completed by the third quarter of 2008.”

The expansion involved the establishment of a production facility with a built-up area of over 8,000 sq m, he said, adding that the present plant had a built-up area of 7,000 sq m.

Tan said the Thai operations contributed about 6% to the group’s total revenue of RM304mil in 2006.

“For the financial year ending Dec 31, 2007 (FY07), we expect the contribution to be about 15%.

“When the expansion is completed, the contribution from Thailand is expected to increase to 30% in 2009,” he said.

Tong Herr paid an interim dividend of 10 sen per share less income tax of 27% for FY07.

On Aug 9, it proposed a one-for-two bonus issue.

For the first half of FY07, it posted net profit of RM43.6mil on revenue of RM250mil, compared with RM16mil and RM111mil respectively in the previous corresponding period.

http://biz.thestar.com.my/news/story.asp?f...mp;sec=business

LaoPo

[cclub75]

Yes Highdiver ! This one is very funny too. Even hilarious.

"Consumer confidence index in August hit lowest level

Thailand's consumer confidence index in August plunged to 75.7 points, the lowest level in 67 months, on concerns of stronger baht and declining economy, according to the survey by University of the Thai Chamber of Commerce, which was released on Thursday." (Nation)

Hopefully, you're immune : ridicule doesn't kill.

[highdiver]

Exports account for a fairly small percentage of GDP, I don't see why people are so focussed on exports whilst talking about GDP.

ECONOMY

The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of GDP in 2006.

state.gov

As usual, solosiam shows his ignorance once again!

I quoted the textbook standard DEFINITION of GDP, go and look it up anywhere and that is the formula.

It was defined by the EU, IMF, World Bank and United Nations amongst others.

you are 100% right.

but the dooms day brigade is not interested in understanding facts...

its easier to "cut and paste" from news papers and add an ingnorent remark then to realy understand what is GDP.

lookie here ,

highdiver knows more / better than the US Dept of State ...................who would of thought

asonsanders.com

When you begin to insult your opponent, you have lost the argument.

Often people who run out of evidence feel threatened and prideful. They refuse to acknowledge the weakness or fallacy of their position and must defend with things that are not Germain to the debate. Insults of a personal nature are common once that happens.

Doesn't know the meaning of the word GDP, but then again you don't know the meaning of most words.

controll c controll v please continue..

[Mid]

whatever 'diver .........................

Economy likely to stay sluggish in post-election period: TCC

Thursday 13 September 2007 03:34:17 PM (GMT+7:00)

BANGKOK, Sept 13 (TNA) – The country's economy is expected to stay sluggish even after the general election is held late this year unless confidence in the country's political stability is restored, according to the Thai Chamber of Commerce.

Speaking at a seminar on "Driving Thai Economy with Morality," TCC chairman Pramont Sutheewong said he believed a new coalition government will be formed in the post-election period.

Under the circumstances, he believes, the economy will not pick up until the new government wins investor confidence, which needs to take some time.

Mr. Pramon said he personally wanted to see a good person nominated as the next prime minister to administer the country.

He added that the country needs a new generation of businesspersons with high standards of morality.

They must be adaptable to the changing business environment that both gives importance to protecting the environment and provides adequate

healthcare for all the people.

Should players in the business sector manage to achieve this, Mr.Pramon suggested, they could outpace their rivals to a certain extent.

He said the adoption of a strong moral code in business practice should begin with companies listed on the Stock Exchange of Thailand. (TNA)-E005

MCOT Public Company Limited

[highdiver]

Yes Highdiver ! This one is very funny too. Even hilarious.

"Consumer confidence index in August hit lowest level

Thailand's consumer confidence index in August plunged to 75.7 points, the lowest level in 67 months, on concerns of stronger baht and declining economy, according to the survey by University of the Thai Chamber of Commerce, which was released on Thursday." (Nation)

Hopefully, you're immune : ridicule doesn't kill.

I would be happy to debate this issue seriously.. but befor that please tell me that you know what is Consumer confidence index and how it is calculated.

if you know it lets do start a serious debate.

[Mid]

Phatra Securities Chief Boosts Thai GDP Growth Estimate

BANGKOK, Sept 13 (Bernama) -- Thailand's gross domestic product (GDP) this year is likely to grow four per cent, higher than earlier projected at 3.7 per cent, since private investment has begun to recover, according to a leading economist.

Supavud Saichue, president of Phatra Securities, said that private investment had contracted in the first and second quarters of this year, in particular experiencing negative growth of 2.3 per cent in the first quarter.

However, it is believed that foreign investors will increase their investment as the general election approaches later this year, the Thailand news agency (TNA) said in its report filed Thursday.

Supavud projected GDP in the second half of this year would expand 3.7 per cent compared with 4.3 per cent in the first half of 2007 because the overall economy is expected to be affected by the slowdown of exports.

At the same time, local consumption has shown no sign of recovery and is expected to be sluggish for a long period, he said.

-- BERNAMA

there's ya bone 'diver ........................

[highdiver]

......and now for some real news about real investors and the future.

September 12, 2007

Thai PM speaks to global investors in "Thailand Focus 2007"

Thai Prime Minister H.E. Gen. Surayud Chulanont delivered the keynote address,

"This Government's Legacy for Thailand", in opening "Thailand Focus 2007" today.

The conference involves 63 mai- and SET-listed companies together with 270

local and foreign institutions, far more than expected.

'Thailand Focus 2007' allows senior executives, managers and analysts from

leading international funds and institutions to meet with top-level Thai

policymakers and businessmen. Participants heard about the policy challenges

facing Thailand's next government, and trends in the automotive, technology

and communication, and digital animation sectors. A highlight of the event is

that, for the first time, listed companies in six ASEAN countries (Indonesia,

Malaysia,Philippines, Singapore, Vietnam, and Thailand) are represented.

"We've received a very good response from institutions. Of the 270

participants, about 90 are from the U.S.A., Europe and Asia, who collectively

manage USD 3 trillion (or about THB 105 trillion) in assets. Of these assets,

about USD 8,600 million (or THB 300 billion) is invested in Thailand.

Also participating are 180 fund managers who manage local equity, provident,

long-term equity,and retirement mutual funds, controlling assets of around THB

400 billion.

There are 63 Thai listed companies attending the event. These firms are from

15 sectors, having a combined market capitalization of THB 4.28 trillion (as

of September 10), or 70% of the Thai stock market's total capitalization. They

will offer about 1,000 group presentations and one-on-one meetings during the

three-day event.

Sessions on September 12 included Outlook for Thailand's Automotive Industry,

a panel discussion, and Opportunities and Challenges for Tourism Development

in ASEAN, where executives representing six ASEAN members spoke about the

challenges and outlook of this industry.

On September 13, there will be sessions in the morning including Policy

Options of Future Government, Telecommunications: Future Directions, while the

afternoon will feature Thailand's Productivity and Competitiveness, and

Thailand's Animation Industry.

if its investors confidence the rising SET and the turn up of this even shows what real players think about thailand.

yep.... 4 months 122 pages and 1800 posts.....we can safely assume there is definatly a crisis ...

[Mid]

^

warning ,

politician Lips moving ....................................................

Edited September 13, 2007 by Mid

[cclub75]

I would be happy to debate this issue seriously.. but befor that please tell me that you know what is Consumer confidence index and how it is calculated.

if you know it lets do start a serious debate.

Classic. The data doesn't fit your mental framework, therefore the data is flawed.

It's an index. I don't care how it is calculated. And I really don't care about the august result, if I may say.

What is interesting is the trend : the same index over long a period of time.

It allows to avoid the statistical discrepancies or season effects.

The trend again is going south. You can cry, deny, hit your head on your keyboard... the trend is against you.

But mai pen rai, this thread (The Mother Of All Threads) shall continue. And for a very long time, even if you dislike this idea.

Edited September 13, 2007 by cclub75

[A_Traveller]

The Consumer Confidence Index, is not strictly speaking 'measured', but is a measure. It has been run by Nielsen for decades, the report provides an overview of consumer activity & sentiment worldwide and is viewed, as an independent analytic.

Hong Kong and Sweden were the most optimistic countries in the first half of this year, with a six-point lift, while the biggest loser was Thailand, where consumer confidence

plummeted fifteen points. Thais’ have experienced a volatile 2007 so far. Continued political unrest, a spate of violence and deaths in southern Thailand – a region which relies heavily on tourism dollars- and then bombings in Bangkok over Thai New Year, have all contributed to a serious erosion of consumer confidence in recent months.

Regards

/edit typo add quote//

Edited September 13, 2007 by A_Traveller

[highdiver]

I would be happy to debate this issue seriously.. but befor that please tell me that you know what is Consumer confidence index and how it is calculated.

if you know it lets do start a serious debate.

Classic. The data doesn't fit your mental framework, therefore the data is flawed.

It's an index. I don't care how it is calculated. And I really don't care about the august result, if I may say.

What is interesting is the trend : the same index over long a period of time.

It allows to avoid the statistical discrepancies or season effects.

The trend again is going south. You can cry, deny, hit your head on your keyboard... the trend is against you.

But mai pen rai, this thread (The Mother Of All Threads) shall continue. And for a very long time, even if you dislike this idea.

Classic ..... just as I thougt you have no idea what it is...

if you wish to debate this issue then please try and bring some know how to the disussion or its futile...

once you take time to learn what is Consumer confidence index. how it is mesured and calulated in thailand then we cant staet discusing if it represents a good or bad trend for the economy.

[Mid]

Thai businesses advised to invest in Vietnam

Last updated: 15:55 - September 13, 2007

Thailand's Economic-Industrial Office have advised Thai businesses involved in textile operations to move their investment to Vietnam to reduce production costs and increase competitiveness in the international market.

The advice was the result of the office's recent study on Thailand's competitiveness between Vietnam, China, Malaysia, Indonesia, India, Pakistan and the Philippines.

The study showed that production costs in Vietnam were 19.48% lower than those in Thailand, due to factors like import-duty exemptions for raw material, low-cost labour and lower energy costs.

According to the study, average workers' wage in Thailand is about US $14 per day, the highest rate among the countries studied, while salaries of workers in Vietnam and Pakistan are much lower, averaging US $3.68 per day. (VNA)

nhandan.com.vn

[Mid]

Thais suffer without subsidies as oil hits record

By Ploy Chitsomboon

Reuters

Thursday, September 13, 2007; 5:01 AM

BANGKOK (Reuters) - Thais are to suffer another economic blow as global oil prices rose to a record above $80 a barrel and the post-coup government ruled out resurrecting fuel subsidies that were dumped as too expensive.

Motorists in Thailand are more exposed to global oil rises than many in Asia, after the country freed fuel prices at the pump to market rates by 2005, unlike countries such as China and India that maintain government-capped prices.

snip

washingtonpost.com

[highdiver]

The Consumer Confidence Index, is not strictly speaking 'measured', but is a measure. It has been run by Nielsen for decades, the report provides an overview of consumer activity & sentiment worldwide and is viewed, as an independent analytic.

Hong Kong and Sweden were the most optimistic countries in the first half of this year, with a six-point lift, while the biggest loser was Thailand, where consumer confidence

plummeted fifteen points. Thais’ have experienced a volatile 2007 so far. Continued political unrest, a spate of violence and deaths in southern Thailand – a region which relies heavily on tourism dollars- and then bombings in Bangkok over Thai New Year, have all contributed to a serious erosion of consumer confidence in recent months.

Regards

/edit typo add quote//

sorry mate some wrong data here..

Consumer Confidence Index is mesured by each country a liitle diferently but the msot popular is the TNS method.

As such one has to understand what it is before debating its attributes on the economy.

the Nielson globalConsumer Confidence Index has not been running for decades it only started in 2003. and it is polled on 47 countries only by internet users and does not incude Thaialnd.

As such youe quote of Patric Dodd of Nielson is in accurate as how can he coment of an index that thailand is not apart of...???

At any case the optimistic values that you attribute are only apart of the formulla.

but lets not let a minor thing as facts get in the way.

[xbusman]

Thai businesses advised to invest in Vietnam

Last updated: 15:55 - September 13, 2007

Thailand's Economic-Industrial Office have advised Thai businesses involved in textile operations to move their investment to Vietnam to reduce production costs and increase competitiveness in the international market.

The advice was the result of the office's recent study on Thailand's competitiveness between Vietnam, China, Malaysia, Indonesia, India, Pakistan and the Philippines.

The study showed that production costs in Vietnam were 19.48% lower than those in Thailand, due to factors like import-duty exemptions for raw material, low-cost labour and lower energy costs.

According to the study, average workers' wage in Thailand is about US $14 per day, the highest rate among the countries studied, while salaries of workers in Vietnam and Pakistan are much lower, averaging US $3.68 per day. (VNA)

nhandan.com.vn

This kind of stuff is just so bizarre as to boggle the mind. I cant ever remember a governmental agency recommending that businesses move out the country, much less to a major competitor. This has got to be tied in with the proposal to provide tax benefits for companies that would like to leave Thailand. I cant imagine why any country to actively work to push core businesses away. I can understand protecting home industries from outsiders, even if its wrong for the consumer, governments after all dont really work in the best interest of the public. But this is something completely new and outside the normal strange behavior.

Anyone have any ideas at all of why Thailand wants to divest itself of the garment industry instead of getting competitive. I mean, dont you think normally a government might try to fix the problems of the import export corruption taxes and energy problems instead of evicting an industry that probably employs a huge number of Thais? What in the world could they be thinking?

If they are throwing in the towel on garments, how much longer before they throw the towel in on jewelry and furniture, and after that, electronics and autos?

[A_Traveller]

The Consumer Confidence Index, is not strictly speaking 'measured', but is a measure. It has been run by Nielsen for decades, the report provides an overview of consumer activity & sentiment worldwide and is viewed, as an independent analytic.

Hong Kong and Sweden were the most optimistic countries in the first half of this year, with a six-point lift, while the biggest loser was Thailand, where consumer confidence

plummeted fifteen points. Thais’ have experienced a volatile 2007 so far. Continued political unrest, a spate of violence and deaths in southern Thailand – a region which relies heavily on tourism dollars- and then bombings in Bangkok over Thai New Year, have all contributed to a serious erosion of consumer confidence in recent months.

Regards

/edit typo add quote//

sorry mate some wrong data here..

Consumer Confidence Index is mesured by each country a liitle diferently but the msot popular is the TNS method.

As such one has to understand what it is before debating its attributes on the economy.

the Nielson globalConsumer Confidence Index has not been running for decades it only started in 2003. and it is polled on 47 countries only by internet users and does not incude Thaialnd.

As such youe quote of Patric Dodd of Nielson is in accurate as how can he coment of an index that thailand is not apart of...???

At any case the optimistic values that you attribute are only apart of the formulla.

but lets not let a minor thing as facts get in the way.

Fact 1. The Nielsen CCI operation has been running for decades. It has however changed is name over time.

Fact 2. Thailand is one of the 47 respondent markets reviewed.

Fact 3. Ergo your dismissal of the quote is erroneous.

Fact 4. Patrick Dodd is a senior at Nielsen {Europe}, but the quote is from a subscription report which is as is normal unattributed.

Fact 5. TNS is another organisation which aims to provide data, and is used in part, by the Conference Board group.

Regards

Edited September 13, 2007 by A_Traveller

[highdiver]

Thai businesses advised to invest in Vietnam

Last updated: 15:55 - September 13, 2007

Thailand's Economic-Industrial Office have advised Thai businesses involved in textile operations to move their investment to Vietnam to reduce production costs and increase competitiveness in the international market.

The advice was the result of the office's recent study on Thailand's competitiveness between Vietnam, China, Malaysia, Indonesia, India, Pakistan and the Philippines.

The study showed that production costs in Vietnam were 19.48% lower than those in Thailand, due to factors like import-duty exemptions for raw material, low-cost labour and lower energy costs.

According to the study, average workers' wage in Thailand is about US $14 per day, the highest rate among the countries studied, while salaries of workers in Vietnam and Pakistan are much lower, averaging US $3.68 per day. (VNA)

nhandan.com.vn

This kind of stuff is just so bizarre as to boggle the mind. I cant ever remember a governmental agency recommending that businesses move out the country, much less to a major competitor. This has got to be tied in with the proposal to provide tax benefits for companies that would like to leave Thailand. I cant imagine why any country to actively work to push core businesses away. I can understand protecting home industries from outsiders, even if its wrong for the consumer, governments after all dont really work in the best interest of the public. But this is something completely new and outside the normal strange behavior.

Anyone have any ideas at all of why Thailand wants to divest itself of the garment industry instead of getting competitive. I mean, dont you think normally a government might try to fix the problems of the import export corruption taxes and energy problems instead of evicting an industry that probably employs a huge number of Thais? What in the world could they be thinking?

If they are throwing in the towel on garments, how much longer before they throw the towel in on jewelry and furniture, and after that, electronics and autos?

I belive you may be right.

it may be an attempt to force the goverment for tax benefits...

[Prakanong]

Thai businesses advised to invest in Vietnam

Last updated: 15:55 - September 13, 2007

Thailand's Economic-Industrial Office have advised Thai businesses involved in textile operations to move their investment to Vietnam to reduce production costs and increase competitiveness in the international market.

The advice was the result of the office's recent study on Thailand's competitiveness between Vietnam, China, Malaysia, Indonesia, India, Pakistan and the Philippines.

The study showed that production costs in Vietnam were 19.48% lower than those in Thailand, due to factors like import-duty exemptions for raw material, low-cost labour and lower energy costs.

According to the study, average workers' wage in Thailand is about US $14 per day, the highest rate among the countries studied, while salaries of workers in Vietnam and Pakistan are much lower, averaging US $3.68 per day. (VNA)

nhandan.com.vn

This kind of stuff is just so bizarre as to boggle the mind. I cant ever remember a governmental agency recommending that businesses move out the country, much less to a major competitor. This has got to be tied in with the proposal to provide tax benefits for companies that would like to leave Thailand. I cant imagine why any country to actively work to push core businesses away. I can understand protecting home industries from outsiders, even if its wrong for the consumer, governments after all dont really work in the best interest of the public. But this is something completely new and outside the normal strange behavior.

Anyone have any ideas at all of why Thailand wants to divest itself of the garment industry instead of getting competitive. I mean, dont you think normally a government might try to fix the problems of the import export corruption taxes and energy problems instead of evicting an industry that probably employs a huge number of Thais? What in the world could they be thinking?

If they are throwing in the towel on garments, how much longer before they throw the towel in on jewelry and furniture, and after that, electronics and autos?

Oh strong economies like Singapore do it all the time - they also invest their own money oversea's

In Thailand, business leaders, politicians and civil servants say the first thing that comes into their mouth and a cohernt strategy is as likely as herding cats.

A one act comedy