BANGKOK, Jan 7 – Thai exporters are prepared for the planned “Bangkok Shutdown” on January 13, though some major buyers may start ordering goods from Thailand’s competitors so as to avoid risks from the seizure of the capital.
Thai National Shippers’ Council chairman Nopporn Thepsithar said today that shutting down seven major locations in the capital may result in four levels of severity starting from business struggles followed by a suspension of export activities, but only for a short period of time. He said if the situation reached the third level, it may affect the attempt to form a new government or the new government will be successfully formed but exports would be hurt as the sector’s survival mostly relies on government policies.
In the worst case scenario, Mr Nopporn said the escalating political crisis could prevent the formation of the new government or it would be difficult for the new government to function. Exports would be affected as well as investor confidence. The current situation is now between levels 0 and 1.
Mr Nopporn claimed that Thai exporters are well prepared for the shutdown as they learned a lesson from the previous rallies and massive floods in the capital two years ago. He said businesses at that time delayed delivery of products and the same incident would likely be repeated next week.
He later admitted that foreign buyers have expressed concerns and wanted to make sure that their orders would be delivered on time. Many are closely monitoring Thailand’s political situation and have started to buy products from competitors, especially in the food, garment and appliance industries.
Mr Nopporn voiced confidence, however, saying that 2014 exports would reach the targeted 5-7 per cent due to improved economies in the US, Japan and Europe, which are Thailand’s major trading partners, as well as the US’s relaxing of quantitative easing (QE) measures.
Products that benefit most from the weakened baht are low-profit margin ones such as rice. Positive outlooks are seen for chicken and shrimp as well as electrical appliances, auto parts and the garment industries.
