The Commerce Ministry has joined hands with a top Saudi supermarket to promote Thai products in Saudi Arabia.
Commerce Minister Jurin Laksanawisit chaired the launch of a promotional campaign for Thai products at Manuel Market in Riyadh on Sunday.
Jurin said the trade value between Thailand and Saudi Arabia had shown satisfactory growth at 46 per cent in the first seven months of 2022.
He added that Thailand also enjoyed a trade surplus of 26 per cent with Saudi Arabia due to an improvement in bilateral ties.
The minister said Manuel Market sells 30 categories of Thai products, including canned seafood, canned fruit, rice, condiments and pet foods.
He added that Manuel Market had imported US$22 billion worth of Thai products last year, and hopes the value will rise to $30 billion this year.
According to the International Trade Promotion Department, Manuel Market is a top mall and supermarket in Saudi Arabia. There are 12 branches in big cities including Riyadh, Jeddah and Jubail.
Manuel Market imports consumer products from foreign countries, especially from Europe and Asia, including Thailand, from which it imports food products.
Thailand and Vietnam are ready to cooperate on boosting the global rice price in a bid to help rice farmers, he Agriculture Ministry said on Monday.
An adviser to the ministry, Alongkorn Ponlaboot, said Thailand had asked Vietnam for cooperation in May.
He added that the cooperation was approved by Agriculture Minister Chalermchai Sreeon and his counterpart Le Minh Hoan.
“This is the first time that Thailand and Vietnam, the world’s second- and third-largest rice exporters, have agreed to cooperate on boosting the global rice price,” he said.
Both Thailand and Vietnam believe that the current global rice price is unfair to farmers, as they are suffering from debt and poverty, he said.
He also explained that rice production costs have risen sharply due to the Covid-19 crisis and the Russia-Ukraine war.
“If the situation continues, farmers would turn to growing other crops that generate higher income, leading to a decline in rice production with its greater impact on global supply of food,” he said.
He said Thailand and Vietnam will set up an ad hoc working group to inform rice farmers and exporter associations about the cooperation.
He added that the cooperation would be expanded to other rice exporters in the future.
“Both parties have agreed to increase agricultural trade as well,” he added.
In 2021, agricultural trade between Thailand and Vietnam was valued at 74.21 billion baht. Thai imports accounted for 25.46 billion baht and exports amounted to 48.75 billion, yielding Thailand a 23.28 billion baht trade surplus.
A 6,000-per-cent rise in foreign arrivals July is among positive signs that Thailand’s economy is recovering to stability, the Fiscal Policy Office (FPO) said on Monday.
The FPO was announcing economic indicators and data for July.
July saw 1.12 million foreign arrivals, a rise of 6,126.3 per cent from the same month last year. Arrivals were also up 3.8 per cent from the previous month.
The majority of foreign tourists came from Malaysia, India, Vietnam and South Korea.
Domestic travel also increased to 16.7 million trips in July, up 1,818.6 per cent from last year and 2.4 per cent from the previous month.
Other positive indicators included a rise in consumption of durable goods.
For example, the sale of vehicles rose 15 per cent while motorcycle registrations rose 16.4 per cent compared with July last year.
Revenue from value-added tax (VAT) rose 1.8 per cent year on year while the consumer confidence index in July rose 0.8 points from June to 42.4.
Land and property tax revenue rose 8.5 per cent from July last year but dropped 4.8 per cent from the previous month.
July’s export value stood at US$23.629 billion, up 4.3 per cent from last year and seeing its 17th monthly rise in a row.
The agricultural production index also rose 1.1 per cent year or year while the industrial confidence index was up from 86.3 points in June to 89.0 points.
Private-sector investment fell by 5.1 per cent from July last year. However, investment in construction as reflected by cement sales rose by 6.3 per cent.
The FPO said Thailand’s economy was still enjoying stability with headline inflation of 7.61 per cent and core inflation at 2.99 per cent.
As of the end of June, the public debt-to-GDP ratio was 61.1 per cent. Meanwhile, newly laid-off workers applying for compensation from the Social Security Office in July constituted only 0.56 per cent of all Social Security Fund members.
The government’s think tank has declared a “food security crisis” after more than quarter of a million Thais were found to be undernourished – many of them farmers.
Some 260,000 Thais are undernourished, according to the National Economic and Social Development Council (NESDC)’s report on Thai society in the second quarter of this year.
Titled “Food Security Crisis: Measures and Guidelines for Improving Thailand Food Security with Sustainability”, the report cites the Economist’s 2021 Global Food Security Index (GFSI). The GFSI report states that many of the 260,000 undernourished Thais are farmers who grow crops and produce food.
This is despite the fact that Thailand is among the world’s largest food exporters, ranking 13th last year.
The GFSI ranks Thailand 51 out of 113 countries in terms of food security, based on four criteria of affordability, availability, quality and safety, and natural resources and resilience. The GFSI 2021 gave an overall score of 64.5 out of 100 score, a slight improvement on the 2020 score of 63.6.
Thailand was ranked ninth among Asia-Pacific nations in terms of food security and 15th among middle-income nations.
The NESDC noted that although Thailand’s food affordability score was 81.8, 0.38 per cent of its population was under the global poverty line, meaning about 260,000 people, especially residents in remote areas, face undernourishment.
The NESDC said food insecurity mostly occurred in rural farming areas where drought is the major problem and transportation is an issue.
This year, soaring inflation has increased economic hardship for many Thais and made food less affordable.
The NESDC report added that farmers’ ability to subsist on the food they produce is also declining.
It said vulnerable groups still need government measures to make food more affordable.
The baht opened at 36.29 to the US dollar on Monday, weakening from Friday’s close of 36.03.
The Thai currency will likely move between 36.20 and 36.40 against the greenback during the day and between 35.80 and 36.40 during the week, Krungthai market strategist Poon Panichpibool predicted.
Poon said the baht will possibly weaken as the dollar strengthens and the gold price heads downward.
He suggested monitoring foreign investors’ transactions. He also expects the Thai stock index to drop next week in response to the US stock index, though this will encourage foreign investors to buy Thai stocks.
Meanwhile, the dollar won support as the market expects the US Federal Reserve to increase the interest rate by 0.75 per cent in September. The greenback may strengthen further if the US labour data is better than expected.
However, the European Central Bank’s indication that it may increase the interest rate may support the euro and slow down the dollar’s strengthening.
The strategist advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.
Young Thais investing in cryptocurrencies and digital assets risk big losses due mainly to their get-rich-quick attitude and lack of experience and knowledge.
That was the warning issued by the National Economic and Social Development Council (NESDC), a government think tank, in a report on Thailand’s outlook in the second quarter.
The agency said young Thai investors also tend to base their investment decisions on instinct rather than analysis.
People aged under 30 constitute about half of registered crypto investors in Thailand, the report said, citing a study by Mahidol University’s College of Management (CMMU).
“The CMMU study found that Gen Z invests in cryptocurrencies because they want to get rich quick,” it adds.
It said this attitude turned some people into millionaires in a short period but many crypto investors also made huge losses quickly.
Almost 45 per cent of Thai crypto investors have no knowledge or understanding of the market, said the NESDC report, citing the CMMU study. This lack of knowledge, particularly among young investors, makes them more prone to making wrong decisions, it warned.
A separate survey by the Thai Securities and Exchange Commission (SEC) found that about 25 per cent of investors in digital assets made their investment decisions based on instinct alone. Meanwhile, 41 per cent used different analysis methods and 26 per cent based their decisions on the latest information.
The CMMU study also found that almost 65 per cent of Thai crypto investors traded through online platforms based overseas to avoid paying taxes in Thailand.
The NESDC report warned that crypto investors should opt for reliable platforms to avoid compromising their personal information. It said investors are often unable to examine overseas platforms properly, unlike those based in the country and under SEC supervision.
The government recently asked the SEC to lead an overhaul of Thailand’s crypto regulations after local exchange Zipmex halted withdrawals and entered bankruptcy protection. Yet despite a global meltdown that saw the crypto market lose about US$1 trillion in May and June, Thailand, a hotbed of digital currency trading in Southeast Asia, still has more than 20 SEC-registered digital asset operators.
Chiang Mai will showcase the recovery of micro-, small and medium-sized enterprises (MSMEs) in Thailand when the country hosts world leaders at Apec meetings from next month.
The spotlight will focus on how Thailand’s bio-circular-green (BCG) economy model is aiding sustainable recovery, said Foreign Ministry permanent secretary Thani Thongphakdi on Friday.
Thailand is hosting four meetings of the 21-member Asia-Pacific Economic Cooperation (Apec) forum – two in September and one each in October and November.
Apec, which accounts for 62 per cent of global GDP, plays a critical role in determining the direction, policies and standards of global trade and investment.
Thani said Thailand will host 1,000 delegates and representatives attending over 100 Apec-related meetings throughout the year.
This was an excellent opportunity to demonstrate the country’s competitiveness, particularly among local MSMEs, which account for more than 70 per cent of business in the country, he told the Apec Media Focus Group forum at Chiang Mai University.
Cherdchai Chaivaivid, director-General of the Department of International Economic Affairs, said it was critical for Thailand’s MSMEs to think outside the box and adapt to trends in order to grow in the aftermath of Covid.
“Profit is no longer the number one priority in business,” he said, on the topic of “Sustainable MSMEs, Women, and Business”. “However, being responsible for your community and the environment will eventually pay off.”
Thailand has over 3.1 million MSMEs in total, with Chiang Mai accounting for about 100,000.
The northern capital will offer practical examples of how small businesses are using the BCG model to recover and thrive, the Foreign Ministry said.
Akom Suwanganta, president of the Federation Thai SMEs, Chiang Mai Chapter, said Chiang Mai residents understand the importance of sustainability after suffering PM2.5 air pollution for years.
“Our members work with researchers to find ways to improve both their products and the process of running their businesses by using more environmentally friendly methods,” Akom said.
Their focus is on “fewer carbon emissions, less waste, less energy consumption, and greater community responsibility”, he added.
Local entrepreneurs are also benefiting from increased support under Chiang Mai’s five-year provincial development plan (2023-2027). Value-added agriculture is one of the key drivers.
Under the BCG model, high-value processed agriculture and food innovations of the future will be developed, as will trade and investment based on the creative economy, innovation, and sustainability.
Pitiwat Wattanachai, president of Chiang Mai University’s Science and Technology Park, said the institution is helping local business owners to apply technology and innovation to boost operations.
He cited Hillkoff, a local hill-tribe coffee brand that is using the texture of the beans to create new products like coffee balsamic. Other new MSMEs are launching into business by enhancing and expanding on previous research, he added.
The Foreign Ministry is hosting an Apec exhibition at Central Festival Chiang Mai until August 30. The aim is to promote awareness and benefits of Apec membership to Chiang Mai businesses and locals.
The National Wage Committee has given the green light to increase the average minimum daily wage by 5 per cent to 337 baht, likely effective from October 1.
Labour Ministry permanent secretary Boonchob Suthamanaswong, who chairs the panel, said on Friday it had resolved to raise the minimum wage by 5.02 per cent.
The committee consists of representatives of employers, employees and the government.
The Labour Ministry will forward the resolution to Cabinet for endorsement so the new minimum wages could come into force on October 1, Boonchob said.
The new minimum wages vary from 328 to 354 baht depending on location.
Three provinces – Chonburi, Rayong and Phuket – will see the highest increase, to 354 baht.
Bangkok and its five satellite provinces — Nonthaburi, Nakhon Pathom, Pathum Thani, Samut Prakan and Samut Sakhon — will see the minimum wage raised to 353 baht.
The lowest hike — to 328 baht — will apply to Yala, Pattani, Narathiwat, Nan and Udon Thani.
Boonchob said that in making its decision, the National Wage Committee attempted to balance businesses’ survival with employees’ ability to cope with the rising cost of living.
The panel also proposed measures the government could implement to curb possible impacts of the wage hike on business operators, the permanent secretary said.
Thailand’s unemployment rate was 1.37 per cent in the second quarter, with 550,000 people without jobs, but the outlook is improving as the economic recovery continues, according to the National Economic and Social Development Council (NESDC).
NESDC secretary-general Danucha Pichayanan said on Friday that the jobless rate in the second quarter of 2022 was the lowest since the country was first hit by the Covid-19 pandemic in 2020.
He said Thailand’s employment situation has seen continued improvement in the second quarter, with 39 million people being employed in the system. That was a 3.1 per cent expansion from the same period last year, the highest since Covid-19 struck.
“This reflects a recovery in the labour market as the economy is making a positive adjustment due to increased consumption and exports,” the NESDC chief said.
Employment has increased in the production, retail,wholesale, transportation and warehousing sectors, ranging from 4.9 to 12.1 per cent.
NESDC data showed the hotel/restaurant and construction sectors saw a decline in employment— 2.6 and 5.4 per cent, respectively.
Construction projects have stalled due to concerns about economic uncertainties as the prices of construction materials have increased considerably.
Meanwhile, the hotel/restaurant sector has seen a slow recovery from the Covid-19 fallout as foreign tourists are returning to Thailand. However, demand for services has remained much lower than in the pre-Covid period.
In the agricultural sector, 11.7 million people were employed in the second quarter, a 0.8 per cent decrease from the same period last year.
However, employment in the non-farm sector increased 4.9 per cent with 27.4 million people employed.
Danucha said that inflation had resulted in wages being less valuable than before, particularly for low-skilled workers. He added that the government had come up with many measures to help shoulder the higher cost of living for those people, including subsidies for electricity and tap-water costs.
Thai exports in July rose 4.3 per cent from last year to US$23.629 billion, the Commerce Ministry reported on Friday.
The value of exports excluding products related to oil, fuel and weaponry grew 4.1 per cent to $20.306 billion.
Meanwhile, trade value in the first seven months rose 11.5 per cent from the same period last year to $172.814 billion.
Trade excluding oil, fuel and weaponry grew 8.3 per cent to $147.451 billion.
Commerce Minister Jurin Laksanawisit credited the rise to increasing demand for food, easing of Covid-19 lockdown measures, falling freight costs, and the weakening baht.
However, the ministry said the value of Thai exports is likely to fall in the second half amid a slowdown in economies of trading partners and the global inflation crisis.
The semiconductor shortage also hit trade values in July.
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