Govt spending spurs Thai economy in May
Play
THE THAI economy has staged a recovery in May, mainly driven by a 51 per cent surge year-on-year in the government spending on investment in light of signs of improvement in private consumption.
According to Pornchai Thiraveja, deputy director-general at Fiscal Policy Office and finance spokesman, May's investment expenditure was disbursed at Bt36.9 billion, up 51.0 per cent year-on-year, which prompted a 7.6 per cent rise year-on-year in the current fiscal year budget disbursement in total for the month.
Private consumption, in May, signaled improvement, reflecting from a 1.7 per cent increase year-on-year in value-added tax at constant prices and sales of passenger cars which turned into the positive territory for the first time in 36 months.
May's passenger car sales climbed 8.3 per cent year-on-year, while motorcycle sales continued to rise at 14.8 per cent in the month following higher purchasing power on the back of improvement in agricultural product prices and more real farm income.
Agricultural production index turned into the positive territory for the first time in four months at 0.3 per cent year-on-year with increases in major crops including tapioca, corn, fruits and livestocks for consistent demand and no epidemic.
Consumer confidence index on the Thai economy edged down to 61.1 on concerns over affected purchasing power from droughts and the global economic uncertainties that impacted Thai exports
Thai exports, in May, contracted for two consecutive months at 4.4 per cent year-on-year, led by fuel, electronics and agricultural products.
In regard of tourism, the number of foreign tourists to Thailand continued to rise 7.6 per cent year-on-year in May, led by those from China, India, Russia, Cambodia, Laos and Myanmar.
China eyes Myanmar garment industry
Chinese garment factories are interested in investing in Myanmar due to the country’s cheap labour and market potential, according to a report from the Hong Kong Trade Development Council.
As the Chinese government’s policies have prioritised value-added products and China’s basic wages have been rising, textile proprietors are flocking to Southeast Asian countries, where wages are relatively cheap.
A skilled worker in Myanmar’s local garment industry is paid only around US$90 (Bt3,173) per month.
Myanmar also enjoys tax exemptions from the EU market, which makes up 23 per cent of its garment exports.
The Myanmar Garment Manufacturers Association expects the industry to earn $12 billion from exports and create 1.5 million jobs by 2020.
Myanmar’s garment industry began blooming in 2014 and earned $1.5 billion from exports. More than 230,000 workers were involved in the industry as of last year.
Foreign investment in the industry is also rising, with 26.5 per cent of Myanmar’s total FDI aimed at the garment industry in 2013, followed by 27.4 per cent in 2014 and 29 per cent in 2015.
The industry runs on a piecework basis.
Myanmar’s garment exports primarily go to Japan, the EU and South Korea. – Eleven Myanmar
Global turmoil, drought fish deaths slow VN
Vietnam's economy slowed in the first half of 2016, official figures showed Wednesday, with a severe regional drought and a spate of fish deaths adding to losses caused by turmoil in global markets.
GDP growth dropped to 5.52 per cent in the first six months compared to 6.32 per cent in the same period last year. The country grew at its fastest pace for five years in 2015 thanks to strong exports and a flurry of foreign investment.
"Less active global trade and investment... and unpredictable upheavals in the world financial and monetary markets have badly influenced our economy," the General Statistics Office (GSO) said in a statement Wednesday.
Domestic production was also hammered by the region's worst drought in decades, which slammed Vietnamese rice and coffee farmers and cost the country $681 million, according to the GSO.
The economy suffered another blow from a huge loss of fish along the country's central coast that has yet to be fully explained.
"Drought and serious salinisation in Central Highlands and the Mekong Delta as well as mass fish deaths in the central coast have created a major impact on the people's production and lives," the Hanoi-based office said.
Tonnes of dead fish and other marine life began washing up on central shores two months ago and continued to appear for two to three weeks.
The environmental disaster has devastated local fishermen and hit tourism in the area, while also sparking protests across the country.
Activists have pointed the figure at Taiwanese conglomerate Formosa, which operates a steel mill in the area where the fish have died and has a poor environmental track record around the globe.
Communist authorities have cracked down on the demonstrations with arrests. They are expected this week to announce the result of an official probe into the fish deaths. –Agence France-Presse
