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https://www.nationthailand.com/business/40017421

Prime Minister Prayut Chan-o-cha has invited Chinese to invest in Thailand’s Eastern Economic Corridor (EEC), saying it has the potential to become a hub for them in the region.

Prayut extended the invitation through Chinese Foreign Minister Wang Yi, who paid a courtesy call on Government House on Tuesday as part of his two-day visit.

According to a summary of the meeting provided by government spokesman Thanakorn Wangboonkongchana, Prayut told Wang Yi the EEC has logistics networks linking other countries in the region and the corridor has the potential to help Chinese industries, especially in electric vehicle manufacturing and agriculture.

The prime minister also thanked Beijing for facilitating Thai exports of agricultural products and speeding up the clearance process for importing food from Thailand.

Prayut noted that bilateral trade between the two countries from January to April expanded by 20 per cent compared to the same period last year.

During the meeting, the two sides pledged to follow up on the project to build a high-speed railway linking Thailand to China via Laos.

Wang Yi said the railway would promote the transportation of goods and tourism between the two countries.

Prayut pledged full support for the project to ensure its construction is completed “on schedule”.

The PM also expressed thanks to China for allowing Thai commercial flights to return to that country, making it possible for Thai students to resume their studies there.

Wang Yi replied that China would allow even more flights after the Covid-19 situation in his country improves, while Beijing would support travel between the two countries.

The Chinese foreign minister also pledged support for Thailand’s hosting of the Asia-Pacific Economic Cooperation (Apec) summit in November.

Prayut said Thailand needed China’s help to support economic cooperation in the region following a series of uncertainties in the world economy. Wang Yi promised that President Xi Jinping would attend the Apec summit.

The prime minister went on to thank Beijing for its support until the Covid-19 situation in Thailand improved.

He meanwhile expressed concern over the flooding in southern China and hoped the situation would ease soon.

Thanakorn said Prayut sent best wishes to Xi and Chinese Prime Minister Li Keqiang.

The spokesman said Prayut also congratulated the two countries for warm bilateral ties on the occasion of the tenth anniversary this year of the comprehensive strategic partnership.

Thanakorn quoted Prayut as affirming that Thailand is ready to develop the partnership for another decade.

Furthermore, the two leaders agreed in principle to foster ties to mark the 50th anniversary of the establishment of diplomatic ties in 2025.

Wang Yi told Prayut relations between the two countries have always remained warm because Xi and the Thai prime minister have a “good understanding toward each other”.

On the occasion of the tenth anniversary of the comprehensive partnership, the two nations must plan future cooperation for joint prosperity and sustainability, Thanakorn quoted Wang Yi as saying.

The spokesman said Prayut ended his discussion with a Chinese proverb, “Qixin xieli shishi shunli”, meaning if the two countries are united, all problems can be solved and even a mountain can be moved.

Published : July 06, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40017405

The baht opened at 35.94 to the US dollar on Wednesday, the highest in five years, weakening from Tuesday’s close of 35.80.

The currency is expected to move between 35.85 and 36.05 during the day, predicted Krungthai Bank market strategist Poon Panichpibool.

He said the baht weakened quickly, closing in on the 36 level mainly due to the dollar’s strengthening from a demand in safe assets.

Additionally, several European currencies are weakening due to recession concerns, which could support the dollar to strengthen and the baht to weaken.

Poon said the dollar might “invert” if the US Federal Reserve does not signal it would go in for a heavy rate increase in July.

The baht has a chance to weaken past 36 to the dollar if the Chinese government enforces lockdown measures again and the number of Covid-19 patients in Thailand also increases.
The baht came under pressure as foreign investors offloaded Thai stocks, especially stocks relating to tourism and reopening, Poon noted.

However, the Bank of Thailand might intervene, which would slow down the weakening of the baht, so investors will be able to close risks in time, he said.

Exporters might sell the dollar once the baht reaches 36 to the US currency, which would also slow the baht’s weakening, while importers have already purchased a good amount of dollars so they might not panic buy this currency and wait for the baht to go below 36, Poon added.

Published : July 06, 2022

By : THE NATION

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https://www.nationthailand.com/business/40017389

A group of around 100 Saudi businessmen led by the Riyadh Chamber of Commerce visited Thailand’s Eastern Economic Corridor (EEC) on Monday to explore investment opportunities.

The EEC Office said the Saudi entourage, which was led by Riyadh Chamber member Krayem Alenezi, was briefed on the progress of EEC projects and development.

The office also presented EEC investment opportunities to the Saudi businessmen, while Thai businesses pitched proposals for partnerships with their Saudi counterparts.

It marked the first visit to Thailand by the Riyadh Chamber of Commerce in 32 years, following the normalisation of Thailand-Saudi Arabia relations in January.

The Saudis arrived in Thailand on a return visit after Foreign Minister Don Pramudwinai led an entourage of Thai officials and businessmen to Saudi Arabia from May 15 to 19.

EEC Office secretary-general Kanit Saengsuphan said the office presented opportunities in sectors traditionally favoured by Saudi businesses, including digital and tech industries, health tourism, food processing, clean energy, and electric vehicle manufacturing.

Kanit said the visit would likely attract investors from other Middle East countries to the EEC zone.

The second phase of the EEC Office’s investment plan (2022 to 2026) aims to draw 2.2 trillion baht in investment for the zone. The plan is targeting a rise of 400 billion baht per year in EEC investment, Kanit added.

The Saudi business delegation also visited an EEC “smart” factory belonging to SNC Former Plc, a household and automotive appliance manufacturer, to witness Industry 4.0 (digital) manufacturing. Kasit said the businessmen showed interest in factories that use digital technologies to control production.

Published : July 05, 2022

By : THE NATION

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https://www.nationthailand.com/business/40017385

Energy Minister Supattanapong Punmeechaow on Tuesday allayed fears of oil shortage, saying the country now has crude oil reserves for 60 to 70 days.

Supattanapong said the country has doubled its oil reserves from 30 days in the normal situation because of the global energy crisis caused by the ongoing Russia-Ukraine war.

He said the oil reserves situation was reported at the meeting of the National Security Council chaired by Prime Minister Prayut Chan-o-cha on Monday.

It was the first time that Prayut had used an NSC meeting to discuss the energy crisis.

The energy minister said the meeting was useful because all scenarios in all dimensions were discussed.

The Energy Ministry presented all contingency plans in case of an oil shortage in the country, Supattanapong said.

He added that the Commerce Ministry, the Agriculture Ministry and key law enforcement agencies also presented their plans to cope with the situation if an oil shortage occurred.

He said the NSC’s oil emergency meeting was held because the Thai government could not predict how long the Russia-Ukraine conflict would continue.

But Supattanapong said the chance was not high for an oil shortage to occur in Thailand.

“From what I heard at the meeting, the country has made good preparations up to a level. So we exchanged information for the sake of cooperation in case of an emergency. The meeting was like a rehearsal,” the energy minister said.

Apart from crude oil reserves of up to 70 days, Thailand also has LPG gas in reserve for up to 20 days.

“We don’t worry much about LPG because we have LPG separation plants. But we have to import a lot of crude oil, so we have increased the reserve to 60-70 days, compared to the 30 days in a normal situation,” Supattanapong said.

He added that the government has sought cooperation from refineries to look for more sources of crude oil and natural gas in case the war escalated and the transportation of oil and gas was disrupted.

When asked if the government would go ahead with a plan to build a coal-powered electricity plant in Krabi province to cope with possible oil shortage, the energy minister said the existing coal-powered plants should be enough.

To prepare for possible oil shortage, the government would indefinitely delay its plan to stop the operations of the eighth to 11th coal-powered plants in Mae Moh, Lampang province, the energy minister added.

When asked whether the government would go ahead with its plan to seek voluntary contributions from the six major refineries to the Oil Fuel Fund, Supattanapong said the Energy Ministry might soon get a positive reply from the refineries.

Published : July 05, 2022

By : THE NATION

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https://www.nationthailand.com/business/40017380

The headline inflation in June rose to 7.66 per cent year on year mainly because of rising energy prices, the Trade Policy and Strategy Office (TPSO) said on Tuesday.

TPSO director-general Ronnarong Phoolpipat said the headline inflation index rose 0.56 per cent to 107.58 compared to 106.62 in May.

He said the persistently high energy prices had caused inflation to continue to rise while the prices of foods and fresh foods did not have much impact on inflation.

He explained that the prices of general foods and fresh foods have either been increased in May or the price increases have been postponed due to the government’s intervention measures.

Ronnarong said the core inflation, or core consumer product index, rose to 102.99 in June, a 2.51 per cent year-on-year increase, or a 0.24 per cent increase from the 102.74 points in May.

The average core inflation in the first half of the year rose by 1.85 per cent, Ronnarong added.

With several internal and external uncertainties, the TPSO still maintained its prediction of headline inflation for 2022 in the range of 4 to 5 per cent and the average at 4.5 per cent, Ronnarong said.

Published : July 05, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40017372

The baht opened at 35.70 to the US dollar on Tuesday, weakening from Monday’s close of 35.66. The currency is expected to move in the range of 35.60 to 35.80 during the day, Krungthai Bank market strategist Poon Panichpibool said.

He reckons the baht will likely fluctuate and test its resistance level from 35.75 to 35.80 to the dollar because the greenback is strengthening and the market is in a risk-off state, resulting in foreign funds flowing out of the country, especially stocks.

Poon has also advised investors to beware of short-term bond sales if the rate of inflation is higher than expected. Investors expect the Monetary Policy Committee to increase the interest rate.

However, the currency’s weakening may be limited by exporters waiting to sell the baht at the key resistance level, and investors waiting to buy gold on dips.

Poon advises investors to use hedging tools like options to manage their risks in the highly volatile currency market.

Published : July 05, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40017364

The private sector on Monday pleaded for more government spending to boost the economy, as household consumption weakens due to high inflation.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) met on Monday and laid out the worrisome economic situation facing Thailand this year.

It said the main risk was rapidly rising energy prices that were increasing costs for businesses and manufacturers. High prices are also eroding people’s purchasing power, it added.

The JSCCIB warned that the private sector is now bearing extremely high costs. As a result, it can now stimulate the economy on its own, meaning the government should intervene by spending to boost the cash flow in the economy, it added.

The committee also urged the government raise the median budget for government procurement projects to reflect the actual cost of operations.

Meanwhile, it wanted more government measures to aid the tourism sector, a main driver of Thai economic growth.
 

Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), said uncertainty over the Russia-Ukraine war had made inflation unpredictable.

He said Thai industries are expected to grow slowly, except for the food sector where global demand continues to rise regardless of product prices. Although the weak baht makes Thai exports more competitive, manufacturers must prepare for high inflation as well as the possibility of supply chain disruption, the FTI chief added after attending Monday’s JSCCIB meeting.

The JSCCIB views that the global economy is now prone to recession, particularly in the United States and Europe. Inflation is expected to reach a new high, affecting household purchasing power and the manufacturing sector’s ability to manage costs.

Meanwhile, the slowdown of China’s economy because of its Zero-Covid policy would see the Thai export sector face more challenges in the second half of the year, it said.

Payong Srivanich, chairman of The Thai Banker’s Association and JSCCIB chairman, said the committee decided to revise the growth forecast for Thailand this year from 2.5-4.0 per cent to 2.75-3.5 per cent due to the likely global economic slowdown and high inflation.

The JSCCIB also raised its export growth forecast from 3.0-5.0 per cent to 5.0-7.0 per cent, and its headline inflation forecast from 3.5-5.5 percent to 5.0-7.0 percent. The revision was in line with expected high commodity prices and the baht depreciating more than previously forecast.

Although the country’s tourism industry would recover to more than 80% of pre-pandemic levels in the first half of the year, the Thai economy’s recovery would be hampered by high inflation of 6-8 percent.

Also, high inflation would put additional pressure on the Bank of Thailand to raise interest rates, increasing the cost of finance for businesses and entrepreneurs.

Kriengkrai concluded that more joint investment and collaboration between the public and private sectors is required. All businesses are ready to assist the country’s economy, but the government must also provide more practical solutions.

Published : July 04, 2022

By : Nongluck Ajanapanya

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https://www.nationthailand.com/business/40017363

The value of foreign trade by land has risen to 688.822 billion baht, up by 1.74 per cent during the first five months of this year, following the easing of Covid travel restrictions, the commerce minister said on Monday.

Deputy Prime Minister and Commerce Minister Jurin Laksanawisit said the 1.74-per-cent increase, compared to the same period last year, indicated recovery of cross-border trade.

Of the 688.822 billion baht, 404.585 billion baht was the value of exports, a 0.91 per cent drop year on year, while imports amounted to 284.237 billion baht, an increase of 5.75 per cent. Thailand enjoyed a trade surplus of 120.346 billion baht.

Of the total trade, 441.788 billion baht worth of goods trading was conducted with border nations.

He said Malaysia remained the top cross-border bilateral trade partner. Thailand exported good worth 14.932 billion baht to Malaysia during the first five months of this year, the export value dropping by 1.57 per cent year on year. Myanmar was the second highest with 13.442 billion.

Cambodia was third with Thai exports amounting to 13.405 billion baht, an increase of 13.82 per cent, and Laos was fourth with export value of 13.2223 billion baht, a 40.25 per cent increase.

China remained the top export destination for Thai exports by land across bordering nations. Jurin said Thailand exported 19.083 billion baht worth of goods to China during the first five months. The export value dropped by 18.80 per cent year on year, he added. The other major export destination countries were Singapore 3.887 billion baht and Vietnam 3.737 billion.

So far, Thailand has reopened 59 out of 97 border checkpoints while neighbouring countries have reopened 52 border checkpoints, Jurin said.

Published : July 04, 2022

By : THE NATION

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https://www.nationthailand.com/business/40017359

The Commerce Ministry expects to reach a free trade agreement (FTA) with the European Free Trade Association (EFTA) members within two years after negotiations were launched last week.

Thailand launched talks with EFTA – Switzerland, Norway, Iceland and Lichtenstein – on June 28-30 in Bangkok and proposed a two-year deadline.

The talks will focus on trade, e-commerce, investment and dispute resolution.

The next EFTA meeting will be held under Swiss chairmanship in Geneva on October 31-November 4.

Trade between Thailand and the EFTA in the first four months of 2022 was worth US$4.436 billion, with Thai exports making up $2.734 billion of that figure. The main Thai exports to EFTA were gems and accessories, watches and parts, and machines and parts.

Meanwhile, Thailand imported $1.702 billion from EFTA over the same period. Key imports were jewellery, gems, silver and gold bullion, watches and parts, and meat for consumption.

Published : July 04, 2022

By : THE NATION

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

https://www.nationthailand.com/business/40017358

A Hong Kong superstar’s mangosteen-peeling skills are unlocking the secrets of Thai fruits for Chinese consumers while boosting sales at the same time.

TV presenter and actor Bob Lam is the latest weapon being wielded by the Commerce Ministry to boost exports to China, the biggest overseas market for Thai fruit.

Lam is showing off his skills at the “Thai Food Festival”, which is being held in Hong Kong malls and online until Tuesday (July 5). Lam’s trick – well known to most Thais – is to press your thumb into the top of the mangosteen to make it easier to peel. Hong Kong consumers have responded by racking up 110 million baht in fruit purchases from the festival, according to Chanunpat Pisanapipong, chief of the Office of Commercial Affairs in Hong Kong.

Lam is also showing off his mangosteen method on his Instagram and Facebook, she added.

“We aim to use soft power to boost Thailand’s competitiveness and business opportunities in the long term,” she said of the decision to employ a local superstar to promote Thai fruit. The move also aims to show Hong Kong citizens how to purchase and peel other Thai fruits, such as durian and pomelo, she added.

Thai mangosteen exports to Hong Kong skyrocketed to US$9.48 million (338 million baht) between January and May, up 11,769 per cent from a year earlier.

Published : July 04, 2022

By : THE NATION