HEADLINES [click on headline to view story]: 

Thai agricultural exporters receive boost from Japan

BOT chief satisfied with baht movement

Trade deficits surge to over US$8bn in first half of this year

BCCT rocks down to Pattaya again

Thai agricultural exporters receive boost from Japan

The Japanese government has announced lower tariffs and increased import quotas for more than 20 agricultural products from Thailand, saving exporters hundreds of millions of baht a year.

Senior Thai officials said they have been told by Japan’s agriculture minister, who announced the move, that Japan considered the concession as part of its post-tsunami economic aid package, and has nothing to with the current round of bilateral free trade talks.

Thailand’s National Economic and Social Development Board (NESDB) estimates the concession will shave up to 600 million baht in import duties, while doubling the volume of exports of the products concerned.

Import tariffs of up to 10 percent are being cut to zero on beef products, cooked pork, frozen shrimp and chicken, pickles and squid. Other affected products include fruit and vegetables such as durian, mangosteen, banana, pineapple, water apple, and baby corn.

NESDB Secretary-General Ampon Kitti-ampon also predicted that the Japanese aid package would boost the value of exports from an annual 10 billion baht per year to a potential 20 billion baht.

Dr. Ampon said the trade concession is also an indication of Thailand’s potential as a major food product exporter to Japan, as well as an attractive investment destination for food-processing industries.

The Japanese government’s new tariff and import quota regime is now in force. (TNA)

BOT chief satisfied with baht movement

The Bank of Thailand (BOT)’s governor, Pridiyathorn Devakula, expressed his satisfaction with the current baht movement, saying that although the Thai currency had appreciated following the revaluation of the Chinese yuan, it had not reached such a strong level that the bank had to intervene.

He said the baht hovered around 40-42 to the US dollar directly following Beijing’s policy to float the yuan.

In the money market, the baht appreciated 1%, a level that is insignificant. Hence, the central bank saw no need to intervene and would allow the currency to move naturally under the market-based mechanism for some time.

“We are confident that the baht is still stable. In the local market, the baht has strengthened by 1%, while the Japanese yen and euro have appreciated by 1.1% and 1.024% against the dollar. We believe the baht has moved at a rather stable pace and are satisfied with the movement,” said the BOT chief. (TNA)

Trade deficits surge to over US$8bn in first half of this year

Commerce Minister Thanon Bidaya disclosed on July 27 that Thailand’s trade in June continued to be in US$1.88 billion deficit for the sixth consecutive month, resulting in total deficits of more than US$8.15 billion for the first half of this year.

He said exports in June totaled US$9.27 billion, up 11.7% from the same month of the previous year, and those in the first half of this year amounted to US$51.83 billion, up 12.9% from the corresponding period last year.

Imports in June reached a record high of US$11.15 billion, up 37.2% from the same month the year before, and those in the first half totaled US$59.98 billion, up 32% from the same period last year.

“Imports in June surged by a record high of 37.2%. The most imported product is fuel, up 104.4%, followed by capital goods, up 34.2%, and raw materials, up 22.3%. In particular, import of crude oil soared by 109.7% with the value and volume rising by 53.9% and 36.2%, respectively,” he said.

The minister said items with hefty import volume include fuel, steel and iron, gold, and machinery.

In June, import of gold began to decline, but that of fuel, steel and iron continued to stay high.

In an attempt to ease the import of goods, the ministry recently invited operators in the steel industry to discuss the problem and sought their cooperation in curbing steel imports.

Dr. Thanong said he believed the import of steel eased in July, which will help reduce the trade deficit for that month.

In the second half of this year, he said, the ministry will strictly supervise imports, but will not issue measures to control it.

However, the ministry will examine whether there is an unusual rise in imports. If any unusual increases are found, the ministry will take mandatory measures to control it immediately, said the minister.

Dr. Thanong said he was confident that exports in the second half of this year would rise by more than 20% to US$65.37 billion.

Imports in the second half were projected to reach US$59 billion, resulting in a trade surplus of over US$6 billion.

This, when combined with the trade deficits in the first half, would help reduce the deficit for the whole year to less than US$2 billion, the minister said. (TNA)

BCCT rocks down to Pattaya again

Dr. Iain Corness

The previous British Chamber of Commerce Thailand (BCCT) networking evening was so popular that the Chamber decided to come down to the Eastern Seaboard twice in July, holding the event at the Hard Rock Hotel. The number of Bangkok members present was testament to the popularity of these events, with the vivacious Sarah Jayne Edwards of MDS (Management Development Systems) captivating all the male attention (as usual).

New members of the BCCT included Richard Belair of the ink it group, who was drumming up interest in their book division’s publications called Azu’s Dreams. Others looking for people showing interest, by offering ways to get interest, included Paul Dickinson, the coordinator of EFS, involved in private wealth management.

Of course the local stalwarts were all on hand, including Peter Smith of AA Insurances and Paul Wilkinson of AGS Four Winds International Moving, while Stuart Saunders of Es Design was handing out his unique, patented, credit card dental floss dispensers. Not to be outdone, sponsor of the evening Andrew Khoo, the whistling GM of the Hard Rock Hotel Pattaya, began handing out condoms, which everyone said they didn’t need, yet nobody left them on the tables afterwards. Funny that!

The Asian University had two of their top ladies in attendance, with Dr. Marie Therese Claes, the Dean of the Faculty of Business and Susan Joyce, an engineer involved with water, and who was being pressed for answers to the Eastern Seaboard water shortage problem (which does not exist if you listen to various government spokespersons, and does exist if you listen to the business folk actually on the Eastern Seaboard).

Laem Chabang was well represented with Chris Langford and Anil Singh both ready to show that their infrastructure is well in place, while Sandy Langford, who has heard it all before, was seen having another of the Hard Rock Hotel’s rather pleasant house whites.

The next BCCT networking evening will be publicized in the Pattaya Mail, so look for it in a couple of weeks.

(l to r) Clive N. Butcher, managing director of Highfield Equity Co., Ltd., James Williams, director of WLR Associates Co., Ltd., and Simon Matthews, general manager of Manpower.

Patrick T. Gossett (foreground), Eastern Seaboard sales manager for Transpo International Ltd. with (back row, L to R) Robin Hyde, manager of Schenker Removals, Schenker (Thai) Ltd., Andreas Grob, director of operations Thailand, Myanmar and Laos for Schenker (Thai) Ltd., and PR Dhaamodharan (Dhaam), general manager of TRW Steering and Suspension Co., Ltd.

(L to R) Stuart Sutton, general manager of Premier Homes Real Estate Co., Ltd., Paul Wilkinson, general manager Eastern Seaboard of AGS Four Winds International Moving, and Mark Shepard, operations manager of Mermaid Maritime Ltd.

(l to r) BCCT director Mark Butters, Sarah Jayne Edwards of MDS (Management Development Systems), Daniel Poole, sales and marketing manager of Moving and Relocation Services for Santa Fe (Thailand) Co., Ltd., and Andrew Khoo, GM of the Hard Rock Hotel Pattaya.

(l to r) Richard Belair, managing director of AZU Editions Ltd., Nicolas Henly, managing director of Henley Corporate (Asia) Co., Ltd., and Greg Watkins, BCCT executive director.

(l to r) Grittaporn Maneein, sales executive at the Hard Rock Hotel, James Hang, assistant director of sales-Mice Hard Rock Hotel, Daniel Poole, sales and marketing manager of Moving and Relocation Services for Santa De (Thailand) Co., Ltd., Mark Butters, BCCT director, and Sasichol Thongrak, Hard Rock Hotel senior sales manager.

(l to r) Peter Smith, director of AA Insurance Brokerage Co., Ltd., Rujapha Pratoondang from AA Insurance Brokerage Co., Ltd., Cecelia Pitre, public relations manager of Mercure Accor Hotel Pattaya, and Jitra Wongjuam, administration of AA Insurance Brokerage Co., Ltd.

(l to r) Sasichol Thongrak, Hard Rock Hotel senior sales manager, Chris Langford, CEO of Laem Chabang International Terminal Co., Ltd., Sandy Langford, Anyanist Gossett, and Patrick T. Gossett, Eastern Seaboard sales manager for Transpo International Ltd.

(l to r) Les Wilk, executive director of Danai Corp. Ltd., Gregory Parsons, director of Maxi Plan Technology Ltd., Paul Dickinson, coordinator of EFS (Expatriate Financial Services), John Metcalf, coordinator of EFS, Gareth Baxter-Jones, managing director of Consortium UK, and Cecelia Pitre, public relations manager of Mercure Accor Hotel Pattaya.

(l to r) Paul Sinclair from Mobile Advertising Co., Ltd., John Ormand, general manager of F&B Food and Service (Thailand) Ltd., Margaux Ormond and Wendy Knight from Bangkok-Pattaya Hospital.