Export to grow 4-5% this year

The Center for International Trade Studies of the University of Thai Chamber of Commerce forecasts export growth this year to increase 4-5% but under condition that the current political turmoil ends as soon as possible.

The center director Dr Aat Pisanvanich said export growth for 2104 was expected to be 2.1-5.6% or an average 3.8% a year, a recovery from last year’s minus growth of 0.25%.

For the first quarter of this fiscal year, he forecast minus growth of 1.9-1.5%, an average 0.15% minus growth for the fourth consecutive quarter from the second quarter of last year as it was in the period of the start of the global economic recovery.

But he said that although improvement was seen in several markets, Japan remains in slow pace growth when its government imposed a 5-8% tax increases that has forced its people to spend less.

He forecast Thai export to turn positive in the second quarter because of the full recovery of the world economy, particularly Thailand’s trading partners, and stronger baht of 32.07-34.24 baht to a dollar or an average 33.16 baht to a dollar, the lowest level in five years or a devaluation of 7.7% from last year.

Thai export remains at risk from the economic recovery, fluctuation of the baht currency, inflation rate of developed countries and domestic political instability.

But he was optimistic that if the internal political situation eases, exports in the second to fourth quarter would return on a positive trend with the second quarter growing 4% and 7% in the third quarter, and 10% in the fourth quarter, making total growth this year to around 4-5%.

He also said that although the current political turmoil still has not affected exports when there is no closure of airports and seaports that could wreck foreign investors’ confidence, the government should assure investors that Thailand is still in the capable position to export on schedules even there is internal problem to avoid affect future’s orders.

source from http://englishnews.thaipbs.or.th/

Thailand is the world's largest rubber manufacturer

Thailand is the world's largest rubber manufacturer

      Thailand is the world's largest rubber manufacturer for a long time, not less than 20 years, with ability of production at 3.82 million tons per year, next is Indonesia 2.54 million tons per year, Vietnam’s 1.31 million tons per year, China's 1.29 million tons per year and India 1.18 million tons per year . By Thailand can produced a rubber smoked sheets, Rubber bar, Crepe rubber, and especially Rubber latex is an important raw material of finished products manufacturer, such as tires, rubber gloves, rubber tubing, etc.

Biolab to Spend B300m for Plant Upgrade

 Biolab to Spend B300m for Plant Upgrade

       A leading pharmaceutical maker, Biolab Co., Ltd., will spend 300 million baht in 2012 to improve its production plant at Bangpu Industrial Estate in Samut Prakan.  President Rachod Thakolsri said the upgrade will help strengthen production prior to Asean Economic Community in 2015.
      Four years ago, Biolab has already upgraded its plant using 450 million baht.  It has positioned itself to be a pharmaceutical leader in Southeast Asia for many years.
     Biolab, an affiliate of the Bio Group, was found in 1981 to produce various formulations such as powders, tablets, capsules, liquids, ointments, creams, and sterile preparations (small-volume liquids and powders).  It exports more than 150 products to Hong Kong, Singapore, Sri Lanka, The Philippines, the Middle East and Africa.
      Because of great demand, Biolab increased their investment to more than US$10 million to triple its production capacity while importing advanced production lines and having its own research and development and quality-control laboratories.
     Sales from original-equipment manufacturing (OEM) is expected to increase from 10% to 30% of total sales within four years where as the revenue from its own brands will drop from 90% to 70%.
     It is expected that this year’s sales figure will reach 1.2 billion baht, a jump of 9% from 1.1 billion baht last year.
      In 2011, Biolab signed a contract with the Pfizer, a New York pharmaceutical company, to produce and supply Pfizer products in local market.  Besides Pfizer, Biolab is hoping to produce for other US drug makers domestically.  The company signed an OEM contract to make medicine for Takeda, a Japanese Pharmaceutical firm.  It is in talks with other global pharmaceutical companies to make and distribute in Asean.
      According to Mr. Rachod, the government’s initiation to turn Thailand into Asia’s medical hub during integration of Asean in 2015 will be beneficial to Thailand’s medical sector.

Source: bangkokpost.com/business/economics/307513/biolab-to-sink-b300m-into-plant-upgrade

CPF Targets Vietnam’s Middle Class Consumers

CPF Targets Vietnam’s Middle Class Consumers

      CPF Vietnam Corporation, an affiliate of Charoen Pokphand Foods Public Company Limited, is expanding into food processing from livestock to meet an increasing demand from middle class people.

     Sooksunt Jiumjaiswanglerg, the chief executive of CP Vietnam Corporation (CPV) disclosed the direction on group’s business in Vietnam that would concentrate more on food processing and ready-to-eat food.  Brands and marketing will play an important role there.

      Found in 1993, CP Vietnam Corporation, formerly known as CP Vietnam Livestock Corporation, is the leading livestock and aquaculture company in Vietnam.  Later it incorporated whole food production chain – making and distributing animal fee, breeding and farming of livestock and aquatic animals and the processing and production of meat and packaged food items.

     

      Ninety percent of business comes from animal feed, feed meal and aquatic animal farming while remaining 10% is from food processing and ready-to-eat food.  The average growth percentage for the past five years is 29% per year.  In 2011, CPV earned 30 trillion dong (44.4 billion baht), or 50% increase.  Vietnam’s economy is projected to grow at 6% in 2012.  The company expects its revenue growth of 15%.

      Vietnam’s growth will boost financial services and basic sectors like food and beverage.  Out of 90 million people, 68% is under the age of 40.  Higher workforce will push consumer spending for the next 10-15 years.  Middle class group consists of 7 million families.  This number will likely to double in five years.

Source: bangkokpost.com/business/economics/312819/b2-trillion-in-border-trade-by-2015-eyed

Fruits and vegetables from Thailand

Fruits and vegetables from Thailand
      Fruit and vegetable is the exports products that make a lot of income to Thailand, In each year, Thai exports fresh fruit and frozen vegetables is value around  3-4 thousand million per year, and  average growth rate is 15-20%, because of Thailand have a various of fruits and vegetable production result in advantage of type item and flexible  in volume of export ,and also Thai fruit and vegetable are high-quality products, product from Thailand are popular and accepted by consumers overseas.
      The major export markets of Thai fruit and vegetable are China, Viet Nam, Hong Kong, Japan and Indonesia accounted for 79% of the total proportion of the value of all exports. At the same time, there are other markets that have a high growth rate, such as Myanmar, where the market has expanded at 45% and South Korea ,where the market are expanding at 20%.
      In China market, although at present China is the country as a competitor in the market of Fruits and vegetables, but at the same time many state of China  are important distribution center. The fruit that is popular in China is longan, mangosteen, durian, banana,. Rambutan and rose apple, all of these fruit are sell in general fruit shop and include to supermarkets
      In European markets, such as Greece and Switzerland, dry pineapple and Crystallized pineapple are very popular because of the quality and good taste, but due to the pineapple that imports from Thailand are higher-priced than imported from South America or Africa, result in the market share in Switzerland is still not much.
      For the United States market. The popular Thai fruits in the United States West Coast market is  mangosteen, longan and Rambutan While the markets in California and neighboring States have high demand of mango from Thai In addition young coconut and  healthy fruit juice such as  longan juice , mangosteen juice or the juice that come from the Royal project  has been sent to suppliers in the United States, but potential of expanded are  still not much. Mango from Thai are still cannot compete with mango from Mexico because of the cost of air freight are so high  and also  quality of mango from Thai  cannot endurance with transport by boat that may take long time in transport

Furniture and home decor from Thai

Furniture and home decor from Thai  

       Furniture industry Is important to economy of THAILAND, because it is an industry that relies on domestic raw materials in production process. Most of company’s hire local artisans to make product, approximately 90 percent of Thai entrepreneurs is manufacture for export. The main raw material of Thai furniture is rubber wood, Thailand is the world's largest rubber wood plantations, and rubber wood has been used to make furniture. As a result, there are many rubber wood furniture’s company occur in Thailand

      The major export markets of Thai furniture industry are United States, European Union and Japan, but the current export values are still reduced growth rate compared to the main partner countries. This problem comes from the pressure of competitive country, such as Viet Nam, Malaysia, China all of these countries turned attention to furniture exports, and also the governments support entrepreneurs in their country do proactive marketing.

Textiles and apparel from THAILAND

Textiles and apparel from THAILAND

      In 2012 THAILAND has exported  textile and Apparel is value around 7, 300 million us dollars, with 4,272.85 us million dollars from exports textile and  2,949.69 us million dollars from exports apparel, which  important market come from  ASEAN ,United States ,European Union, Japan and China.

      ASEAN market is an important market for Thai textile industry. THAILAND exports to ASEAN more than1,500 million us dollars ,by  Thailand has been exporting a lot of fabric to Viet Nam and Myanmar, includes Cambodian ,Thai apparel is popular in Cambodian. In addition to being a major textile export market of Thai. ASEAN  also is an important production base for export to all over the world. Therefore, the Thai textile products is likely to grow continuously. There are also opportunities for investment expansion into neighboring countries where labor costs are cheaper. And in some countries the trade benefits from Western Nations.