March 20, 2010

 

Thailand exports in line to rise 14% in 2010

 

 

Thailand's exports are forecast to rise by 14% in value this year to reach US$172 billion, after gaining 23.1% in February despite political instability, a stronger baht and high shipping costs.

 

Exports grew in most categories last month with their dollar value up by 23.1% from February last year to US$14.4 billion.

 

In the first two months of this year exports grew by 26.8% year-on-year to US$28.13 billion.

 

The healthy performance means first-quarter exports should reach US$42-43 billion and definitely beat a target of US$41 billion, said Commerce Minister Porntiva Nakasai.

 

In baht value, February's exports totalled THB470 billion, a rise or 16%.

 

Farm and agro-industrial products climbed 38.4% to US$2.5 billion, while major industrial products rose 15.2% to US$9.66 billion. Other products were up 49% to US$2.23 billion.

 

Gaining in both volume and value were tapioca, frozen seafood, canned food and frozen and processed chicken.

 

Export values of rice, and frozen and processed shrimp rose, but volume dipped because of competition with Vietnam, Malaysia and Indonesia. Thailand's major and secondary export markets also grew, with major markets up 38.8% and secondary up 20%.

 

Meanwhile, Thailand's strong competitors such as Vietnam have weaker currencies than the baht, Aat Pisanwanich, director of the Centre for International Trade Studies of the Thai Chamber of Commerce, said.

 

If the baht continues to appreciate, Thai exports of frozen seafood and farm products like rice would be at risk, Aat said. Frozen seafood exports to Singapore have already slipped, with Vietnam, Indonesia and Malaysia gaining market share, he said.

 

High shipping costs would also hinder Thai exports, said Porntiva.

 

The cost of shipping freight on the European route rose by between 50% and more than 300% - with cold-storage containers up from US$2,800 to US$4,300 and normal containers up from US$900 to US$4,000, she said.

 

According to her, the ministry will follow an aggressive strategy to maintain its traditional export markets under the country's Thailand Best Friend scheme. Through the scheme, the ministry will invite established foreign customers - who contribute THB200 billion in orders - to visit Thailand, mainly in June. The ministry plans to raise orders by 20%.