Weak euro problem for Thai exports

[Admin]

Weak euro problem for Thai exports 
Bangkok Post: 8 May 2010
Weak euro trouble for Thai exports

Exports from Thailand to Europe could be hard hit if Greece's debt crisis spills over into other countries, further weakening the euro and the economies of EU members, say Thai business and government leaders.

"Shipments to the European Union and the United States might be affected to certain extent," said Deputy Commerce Minister Alongkorn Ponlaboot. "But the impact has already been anticipated and the government has fine-tuned its export strategy by shifting its focus more to Asean market while viewing the EU and US as secondary markets."

The other nine Asean economies collectively are now Thailand's single biggest export market, following the elimination of most tariffs under the Asean Free Trade Area in January this year.

Fallout from the Greek crisis on Thailand will be marginal if it is limited to Greece, according to a study by the International Trade and Economic Research Center of the Department of Export Promotion at the Commerce Ministry.

Trade between Thailand and Greece represents only 0.08% of total trade value. Two-way trade was worth US$240.53 million last year, down 34.8%, with exports of $217.09 million, down 37%, and imports down 3.7% to $23.44 million.

According to the study, if the crisis spread beyond Greece to other European nations, the impact on Thailand's exports to the EU would become "significant".

Among the 16 countries that use the euro, analysts have singled out Portugal, Ireland, Italy, and Spain as having serious fiscal and debt problems, while the United Kingdom also bears watching.

Debt and fiscal management problems also are seen in Eastern European countries such as Bulgaria, Latvia, Lithuania, Romania, Ukraine and Hungary.

Thailand last year enjoyed a trade surplus with the 27-nation EU of $6 billion, down from $9.05 billion a year earlier. Exports to the EU were worth $18.15 billion, down 22.4%, with imports down 15% to $12.15 billion.

Dej Pathanasetpong, president of the Thai Garment Manufacturers Association, said a short-term impact was unlikely, but he was concerned about longer-term prospects, as a depreciating euro would definitely affect European consumption and make some Thai products less price-competitive.

Vichai Assarasakorn, president of the Thai Gem and Jewelry Traders Association, said the weakening euro had become a concern of local manufacturers, who fear the public debt crisis might worsen and spread from the financial sector to the real sector.

The baht's gains against the euro are making jewellery exported from Thailand more expensive for consumers in the European market, he said. At the same time, gold imported as a raw material is becoming more expensive, resulting in higher costs, he said.

Europe and the US each consume about 30% of Thailand's exports of jewellery, which were valued 330 billion baht last year, he added.

"In terms of price competitiveness, we are not that worried because our competitors are all facing the same problem," said Mr Vichai. "But we do hope the Bank of Thailand will look after this issue and make sure that the baht moves in line with the currencies of our competitors."

Visit Limprana, president of the Food Processing Industry Club of the FTI, said the euro had become an issue for its members.

"The stronger baht against the euro has trimmed our margins which have become very thin," he said.

http://www.bangkokpost.com/business/economics/37013/weak-euro-trouble-for-thai-exports

[TBWG]

Hi Bums

I would hope that the Bank of Thailand will now stop manipulating the Baht and let it find it's own level in the currency market.

It might mean we hard pressed Brits get a few extra baht in our pockets. Artificially maintaining the rate can only work for so long before it bites back!


TBWG

[nookiebear]

Hi Bums

I would hope that the Bank of Thailand will now stop manipulating the Baht and let it find it's own level in the currency market.

It might mean we hard pressed Brits get a few extra baht in our pockets. Artificially maintaining the rate can only work for so long before it bites back!


TBWG

Very true,,,,,look what the outcome was in 1996.............lets hope it happens again soon

[Lourens]

Let's hope it does NOT happen again soon. For the benefit of only a few expats you want the Thai economy to collapse like it did in 1996? That is selfish to the detriment of all of Thailand. There are still Thai people suffering because of that collapse. Shame on you nookie for even thinking like that. May I suggest that you move back to your home country and practise your negative philosophies there. Let those of us who wish to make Thailand our second home do so with optimism for the future.

[nookiebear]

Let's hope it does NOT happen again soon. For the benefit of only a few expats you want the Thai economy to collapse like it did in 1996? That is selfish to the detriment of all of Thailand. There are still Thai people suffering because of that collapse. Shame on you nookie for even thinking like that. May I suggest that you move back to your home country and practise your negative philosophies there. Let those of us who wish to make Thailand our second home do so with optimism for the future.

Its about time you stopped burying your head in the sand .......The last collapse of ALL the asian currencies was caused by the Thai Baht being grossly overvalued....Warnings were constantly being given to devalue the Baht with no-one listening...........look what happened..............
Now the same scenario is forming yet again with the value of the Baht being manipulated.
You are free to suggest what you wish.......I don't have 'negative philosophies' either,I live in the REAL WORLD which appears to be an area you seem unable to gain access to...........I would suggest Thailand would be a far better place for us to live without 'no-hopers'& so called 'do-gooders' being in our midst.

[Lourens]

Not burying my head in the sand - simply facing realities here. As a foreigner on a non-immigrant visa or even a resident, there is nothing you can do to change the policies of this country no matter how hard you shout. Again, being the optimist here, I do not think that the rest of the Asian region will allow the Thai economy to collapse as it did before. And even if it does, what are you going to do about it? Or what CAN you do about it? Nothing! I'm sure you will be happy because it will mean you gain a few Baht on the pound but think about those unfortunate enough to have to live here with no hope of moving to a better situation elsewhere. So I'd rather be a do-gooder than a no-good doer as per your own implication. At least in that way I can live here with a little bit of hope for the future even if I cannot do anything about it. The real world? This is the real world - and there is nothing you can do about it. Wake up and smell the som-tum. If you're going to live here, you'd better get used to that smell. I mentioned in my previous post that I hope for a better future. When I read your previous posts (even under different topics) I see a clear picture of a no-hoper.

[nookiebear]

Not burying my head in the sand - simply facing realities here. As a foreigner on a non-immigrant visa or even a resident, there is nothing you can do to change the policies of this country no matter how hard you shout. Again, being the optimist here, I do not think that the rest of the Asian region will allow the Thai economy to collapse as it did before. And even if it does, what are you going to do about it? Or what CAN you do about it? Nothing! I'm sure you will be happy because it will mean you gain a few Baht on the pound but think about those unfortunate enough to have to live here with no hope of moving to a better situation elsewhere. So I'd rather be a do-gooder than a no-good doer as per your own implication. At least in that way I can live here with a little bit of hope for the future even if I cannot do anything about it. The real world? This is the real world - and there is nothing you can do about it. Wake up and smell the som-tum. If you're going to live here, you'd better get used to that smell. I mentioned in my previous post that I hope for a better future. When I read your previous posts (even under different topics) I see a clear picture of a no-hoper.

I don't know & really don't care as to where you are originally from..............A few baht in the GBP will not make a scrap of difference to me..................You seem to be a 'dab-hand' at posting things you obviously know nothing about''''''''I've lived here for more years than you've even been coming here,so don't try to give it the 'big un'.....I guess I was eating Som-tam before you'd even visited Thailand..........Like I have already said GET REAL,,,just try & I know it will be a difficult task for you....

[TBWG]

Hey Guys

Lighten up ~~~~ I stopped posting on Thai Visa site because of the constant sniping at each other, lets try and get along. Everyone is entitled to an opinion no matter how ill informed or misguided you may think it is.   It's still better than having no opinon at all. 

Peace man!

TBWG

[Lourens]

Sorry TBWG and my apologies to the Admin too.

[TBWG]

Sorry TBWG and my apologies to the Admin too.

Hi Lourens

No need to apologise to me.  We are all indeed fortunate to live in this country no matter how imperfect it may be, lets enjoy it The alternative does not bear thinking about ~~~~ going back to whence we came.

TBWG

[Admin]

No problem, as TBWG said, its better to have an exchange of opinions.

I have to admit every farang in its first steps into moving to Thailand hope something will happen to the economy that will come into his side of benefit (exchange rates), but generally I think it will not be a good place to be if it will get poorer than here and to see others suffering while you get a better rate..
Thailand is still a relatively cheap place to stay if you know your way around and where to shopping and manage your expenses more wisely, you can even live better than other person with MORE money and less knowledge on where to go.
It also comes to the lifestyle you choose to live in.
some people will be just happy to get their beer in the local grocery shop and sit with friends while other can't enjoy living here if he can't eat out every day and drink outside.........
some people can't live with Thai food, couldn't adapt Thai lifestyle and try to equal their life back in (anywhere you came from..) to life in Thailand.
Let me tell you something, its not gonna work for you.
Thailand has it limits and life can't be the same as in your prior life in farang land unless you spend alot...... (and still not get there).

You know what? who want his prior lifestyle in "farang land" anyway?!  

Sit back and relax.