An illusion of high exports

[Dougal]

From Bangkok Post Tuesday 10th July:

Exim Bank warns of export 'illusion'


(dpa) - Thailand's 18.5 per cent rise in exports during the first five months of 2007 was an "illusion" created by a surge in largely foreign-owned high-tech shipments, the export-import bank warned on Monday.

Apichai Boontherawara, president of the state-owned Exim Thailand bank, said Thailand's impressive export performance over the past five months despite the appreciation of the baht currency "has been fueled by high-tech products which constitute 11.6 per cent of such increase while representing 64 per cent of the country's total export value."

The Exim chief noted that over 80 per cent of high-tech exporters are foreign enterprises registered in Thailand that have only been marginally affected by the strong baht due to the high import content of their export items.

Thailand's main high-tech exports include electronics, electrical appliances, automobiles and auto parts.

By contrast, Thailand's lower-tech industries "are losing profits and have to concentrate on increasing the volume of export to maintain their diminishing market shares as well as expanding into emerging markets," said Exim Thailand.

The bank warned that Thai exporters will in the long run have to improve their productivity efficiency, accelerate machinery imports or relocate to other countries to stay competitive.

Thailand's baht currency has appreciated 4 per cent against the dollar already this year, and rose about 12 per cent against the greenback in 2006.

Exports account for some 60 per cent of Thailand's gross domestic product.

[Begbie]

Isn't the increase in high end exports a good thing ?

[lom]

Isn't the increase in high end exports a good thing ?

Would have been better if the low end export increased.
The high end export draws a lot of import because a lot of it is assembly of parts manufactured outside of Thailand.

Sell more rice!

[Butterfly]

^ and finally an article that makes sense, and explains a lot. Very courageous in that regard. I am sure the government officials are still drooling over their strong export and strong THB.

It's going to be brutal when the fueling stops. We are having a reverse of 1997 that could bring as much damage soon.

[Mid]

Commerce minister hopes to see exports grow 15 percent




BANGKOK, March 4 (TNA) – Deputy Prime Minister and Commerce Minister Mingkwan Saengsuwan on Monday set a target for exports to grow by at least 15 per cent this year since shipments already increased more than expected early this year.

Delivering the ministry's policy to commercial councillors stationed in every corner of the world by telephone, he conceded that exporters might be affected by the stronger baht in the short run following the Bank of Thailand's decision to lift the 30 per cent reserve requirement.

So, he wanted the trade representatives to explain what happened now to the exporters and advised them to adjust to the situation.

Although the Commerce Ministry set a target to make exports grow no less than 12.5 per cent this year, he wanted to see the growth of at least 15
per cent.

He said the exports in January still expanded 33 per cent. But the trade balance was in deficit since there was a settlement for the payment of
airplane and machinery purchase.

Given these factors, he believed exports would continue to grow in the following months.

He suggested the councillors to see a direction of exports to major destinations, seek new trading partners, and exercise rights under the free trade area agreement to help boost the export growth.

Mr. Mingkwan said an emphasis should be placed on the export of food and farm products, and fruits and vegetables because a demand for these
products remains high overseas.

He added he would discuss with the Transport Ministry a possibility of developing 36 airports and modifying U-tapao and Don Muang into airports
for goods shipments to accelerate the export growth. (TNA) – E005

enews.mcot.net

highlight mine

[Spin]

relocate to other countries to stay competitive.

Yes, I can see thais going to live in Burma to grow rice

[panama hat]

relocate to other countries to stay competitive.

Yes, I can see thais going to live in Burma to grow rice

Wouldn't it be poetic justice if they then were treated like dirt by the Burmese . . .

[ray23]

Ah yes the Land of Smoke and Mirrors, high exports, low inflation, stable government Ect.