Thai Exports Not Much Affected By Stronger Baht

Thai exports not much affected by stronger baht

BANGKOK (NNT) -- The Thai export sector still has not been affected much by the ongoing Thai baht appreciation, but the Bank of Thailand (BoT) is suggested to monitor the currency not to appreciate too fast.

According to Kasikorn Bank (KBank) Capital Markets Business Division Head Thiti Tantikulanan, foreign capital inflows into the Thai bond and stock markets, as well as the trade surplus can contribute to the appreciation of the Thai baht currency, which is in line with others in the region.

However, the main factors strengthen the Thai baht are the depreciating US dollars following lack of confidence in the US economy. In addition, the Thai baht usually appreciates by 5% per year. So far the export sector in general has not been affected much, said Mr Thiti.

Regarding concerns that investors will shift their capitals to Vietnam after the Vietnamese dong devaluation, Mr Thiti dismissed the worry and said that it was just a theoretical perspective because Thailand has the advantage over Vietnam in terms of infrastructure especially in automotive industry.

The division head, however, proposed that Thailand should also keep improving its transportation system to maintain its advantage. He also suggested that the BoT should monitor the Thai baht currency not to appreciate too fast because it could have effects on industries especially ones requiring labors.

-- NNT 2010-09-01