Flood impact on supply chain worries chamber

Chamber chairman Phongsak Assakul said the government must hurry to reassure the country’s trading partners that after the flood waters completely recede, Thai businesses will be able to produce and export goods to customers on time. Otherwise, those customers might start placing their orders in other countries.

The manufacturers at risk of being affected by the flood disaster in the long term are those in the electrical products and electronics segments, as well as labour-intensive sectors, which can easily move their production bases out of Thailand.
If that happens, it will have an impact on small and medium-sized enterprises in the supply chain, Phongsak warned. However, he believes that the automotive business will remain in Thailand, which has a favourable investment climate.

The export sector will feel the impact of the flooding into the first quarter of next year, given that some manufacturers are still in the restoration stage and do not expect to be able to resume full operations until the second quarter.
It is estimated that the export sector next year will see lower expansion than this year, forecast at 10 per cent versus the estimated 15-per-cent growth this year.

Phongsak added that the government must urgently restore flood-hit industrial parks to enable them to resume production quickly. It should also quickly help SMEs restore their businesses, as they are in need of huge cash injections to rehabilitate themselves.
Moreover, the government must assure foreign investors that there will not be another massive flood next year, he said.