Exports fall across key industries
Despite a 2 per cent fall in total Thai exports in the first eight months year-on-year, the Ministry of Commerce expects the industry to post growth of 3 per cent for 2019.
Kanit Muangkrachang, president of Thai Electrical, Electronics and Telecommunication Industries Association under the Federation of Thai Industries (FTI), said exports of electrical and electronic products should rise in the final quarter, but it would still be in the negative territory for 2019.
“The on-going US-China trade war has dampened the global economy and reduced consumers' spending power,” Kanit said , adding that “ amid technological advancement, many entrepreneurs have adjusted their businesses models by reducing production capacity or the number of workers to cope with the unpredictable market conditions and technology disruption.”
Much like the electronic sector, most of the jewellery factory owners have reduced their capacity in response to the slowdown in global trade.
“Exports from January to August was in deficit, but the turnover should break even for the year” according to a source.
Meanwhile, president of Thai Rice Exporters Association Chookiat Ophaswonse said total rice exports in the first three quarters amounted to 6 million tonnes, way below the 9 million-tonne target, mainly due to the strong baht making Thai prices higher that of its competitors.
The situation does not look good for food exporters either with Visit Limlurcha, president of Food Processing Industry Association, saying that the total value of food exports in the first eight months fell 2 per cent to Bt68.7 million from the same period last year. ,
“Besides, some food producers are facing shortage of ingredients due to drought, leading to drops in production capacities,” said Visit.