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The Commerce Ministry has reaffirmed that exports will grow by only 1 per cent this year.

Commerce Minister Niwatthamrong Boonsongpaisal said export growth should improve to 5-7 per cent next year, while GDP would increase by 4-6 per cent.

He expects domestic consumption to be boosted by government investment, particularly in mega-projects, the Bt2.5-trillion fiscal budget, and the Bt400-billion investment budget provided to state enterprises.

In addition to the government sector, private enterprises are expected to invest a total of Bt60 billion to Bt70 billion. Players will include food, automotive, electronic-parts, and property firms.

The International Monetary Fund has predicted that the world’s economy will grow by 3.5 per cent next year, compared with only 2.9 per cent expected for this year. Worldwide purchasing power will also increase by 4.9 per cent compared with 2.9 per cent of this year, the IMF hopes.

 

SAIC-CP JV to make MGs here

Charoen Pokphand Group has formed a joint venture with Shanghai Automotive Industry Corp, one of the biggest car manufacturers in China, to set up SAIC Motor-CP to manufacture and distribute vehicles under the British-based MG brand. 

Under the joint venture, Shanghai Automotive holds a 51-per-cent stake in the manufacturing firm, with the rest held by CP Group. Costing more than Bt9 billion, the factory will be in Hemaraj Eastern Seaboard Industrial Estate in Rayong and will produce MG-branded 1,200-1,800cc right-hand-drive vehicles serving the Thai market as well as export to other Asean countries.

Thanakorn Seriburi, chairman and CEO of the automotive industrial products business group (China) of CP Group, said the factory would start production in February and begin to deliver vehicles to its customers in the third quarter of next year. The factory will initially operate at about 10 per cent of its full production capacity, set at about 50,000 vehicles per annum, in the first phase. The factory is also interested in producing eco-vehicles in the second phase, which will increase total annual capacity to about 200,000 units. 

The group also set up MG Sales (Thailand) to be in charge of sales, marketing and after-sales service.

 

Obayashi wins Laos dam deal

Obayashi Corporation has been awarded a contract for civil-engineering work on the Nam Ngiep 1 Hydropower Project in Laos.

The project was launched by Nam Ngiep 1 Power Co, which has three sponsors: KPIC Netherlands BV (KPN), a wholly owned subsidiary of Kansai Electric Power Company of Japan; Egat International Co (EGATi), a subsidiary of the Electricity Generating Authority of Thailand; and Lao Holding State Enterprise (LHSE), a wholly owned subsidiary of the government of Laos. The shareholding ratio is KPN 45 per cent, EGATi 30 per cent, and LHSE 25 per cent.

This hydroelectric project consists of construction of concrete gravity dams and power stations on the Nam Ngiep River, a tributary of the Mekong that flows through Laos and Thailand on their border. The main dam is 148 metres high and 530 metres long at the top, and the volume of the structure’s body is about 2 million square metres. In addition, the two power stations will be equipped for outputs of about 270 and 18 megawatts respectively. Obayashi is responsible for construction of the main dam body, power stations, roads and others.