Purchased goods orders starting to feel affects

Gen Chatchai Sirikalya, assistant army chief and deputy chief of NCPO supervising economic affairs.

Some members of the European Union (EU) have started to slow purchase orders for goods from Thailand, one week after the United States downgraded Thailand to Tier 3 from Tier 2 in its annual Trafficking in Persons (TIP) report, said a deputy chief of the National Council for Peace and Order (NCPO).
The EU also has decided to halt all official visits to the kingdom and suspend the signing of a cooperation accord after last month’s military takeover.
Gen Chatchai Sirikalya, assistant army chief and deputy chief of NCPO supervising economic affairs, said the US downgrade of Thailand to the lowest levels, accusing Thailand of allowing human trafficking, slavery and human rights abuses in the kingdom would “slightly affect Thailand’s exports.”
Thai goods are still in demand with foreign countries, he said, adding that he was optimistic that the situation should return to normal after senior Thai officials travel to the US and the EU to explain the situation to importers from those countries and invite them to inspect operations in the kingdom.
Gen Chatchai on Thursday, June 26, presided over a meeting with senior officials of the Foreign Affairs, Commerce, Labor, Agriculture and Cooperatives ministries, and industrial operators, especially those in the fishery sector.
A major issue which was discussed at the meeting was on the possible negative impact after Washington downgraded Thailand.
It was agreed that high ranking officials from the Commerce, Foreign Affairs and Labor ministries should be sent to the US and the EU to explain to importers as well as inviting them to inspect the general situation in Thailand in order to restore their confidence. (MCOT)

Thai textile industry to grow 3.66% this year

As World Cup fever continues worldwide and Thailand gaining attention by being assigned to produce team jerseys for 10 teams participating in the tournament, Atchaka Sibunruang, director-general of the Industrial Promotion Department, said Thailand’s exports of textiles and garments this year should grow 3.66 percent.
Atchaka said there were signs that the business of producing sport outfits should continue to grow because more people now love to exercise.
It was estimated that Thailand’s exports of textiles and garments in 2014 could fetch about US$7.6 billion, up 3.66 percent from last year, she said.
Wallop Wittanakorn, vice chairman of the Federation of Thai Industries, said that Thai exports to the US and Europe were still positive although Washington has downgraded Thailand’s human trafficking rating.
Wallop said he believed the downgrade would not affect trade connections between American and Thai businessmen.
Suggesting that Thai textile manufacturers ought to further develop their own brands, Yuttana Silpsarnvitch, secretary-general of the Thai Garment Manufacturers Association, said several retailers have gone out of business after their purchase orders were cancelled.
Buyers have switched to purchasing from major manufacturers, said Yuttana, adding that operators are now worrying about the European Union generalized system of preferences, which expires next year. (MCOT)

Thai tourism likely to pick up in 2nd half of year

Tourism Council of Thailand president, Piyaman Techapaiboon.

The Tourism Council of Thailand expects tourism to pick up in Thailand in the third and fourth quarters of this year and the number of foreign visitors to the country should nearly reach the target of 27 million.
Council president, Piyaman Techapaiboon, said that tourism operators’ confidence was low in the second quarter because the survey on their opinions was taken before the national administrative takeover by the National Council for Peace and Order (NCPO).
She now believes that tourism will start to improve in the third quarter as the Peace and Order Council is restoring confidence among foreign tourists and investors.
Piyaman said if restoration of confidence continues, 6.84 million foreigners would visit Thailand in the third quarter, an increase of 5.23 percent, and 7.85 million would come in the fourth quarter during the peak period of arrivals.
Consequently, overall foreign arrivals would reach 26.84 million this year, an increase of 1.09 percent over last year, and Thailand should generate Bt1.26 trillion from their visits.
The Tourism Council of Thailand head said Thai authorities should boost foreign visitors’ confidence regarding safety in the country and take special care of tourists from China, Japan, South Korea, Malaysia and India who form a big group of foreign visitors. (MCOT)