TAT governor Yuthasak Supasorn and director of the TAT office in Stockholm Eurblarp Sriphiromya are piloting the project four countries, namely Sweden, Norway, Denmark and Finland. The aim is to launch tourism in new sectors such as gastronomy, wellness and spa, as well sports to name a few in secondary cities and communities with sustainable development in mind. The first phase will begin in October.

Yuthasak said Thailand is a popular destination among Nordic tourists, because even though the population in the four countries is only 26.5 million, more than 700,000 people visit the Kingdom each year, bringing with them more than Bt64 billion in foreign exchange.

“It’s really a high proportion of the market compared to other European countries with big populations, like Germany with 83 million people or the United Kingdom with 65 million, of whom only 800,000 to 900,000 visit Thailand,” he said.

Most travellers from Nordic countries are also repeat travellers and know the country well. On average, they stay in Thailand for up to 17 days, spending around Bt87,000 per trip, which is much more than people from other European countries. Since most Nordic tourists like exploring new places, this project will offer them a great experience and create more loyalty to the Amazing Thailand brand. The more we offer, the more opportunities we will receive, Yuthasak said.

The TAT governor added that this project does not just aim to boost tourism but also to offer new services that respond to the Nordic travellers’ needs and lifestyles by allowing them to explore other regions in Thailand, especially secondary cities and communities where the start-ups can help serve the travellers as well as provide facilities required in the area.

“It will be a good opportunity for Thai start-ups to promote their products and services directly to the end consumer and expand their business to the Nordic market in the long run,” Yuthasak said

At the same time, Beijing has depreciated the yuan’s value against the dollar.

The Hong Kong Hang Seng closed at 25,966.59, a drop of 184.7 points or 0.71 per cent from Monday.

Japan’s Nikki closed at 20,299.69, down 420.60 or 2.03 per cent.

Singapore’s FTSE Straits Times Index closed at 3,160.26, down 34.25 or 1.08 per cent.

The Shanghai Index closed at 2,909.00, a 46.66-point drop or 1.60 per cent.

The Stock Exchange of Thailand (SET) Index fell 13.27 points on opening Tuesday and by the end of morning trading stood at 1,667.89, up 1.90 points from Monday, with trading value of Bt37.21 billion.

Globlex Securities forecast that the SET index would move between 1,640 and 1,670 amid concerns about a trade war between the US and China and how it would affect the Thai economy.

1. The MOU on Cooperation and Exchange of Information in Banking Supervision supersedes the original MOU signed in 2010. The MOU is aimed at strengthening the effective cooperation on Banking Supervision, particularly in areas of exchange of information and crisis management.

2. The MOU on Cooperation in the Area of Financial Innovation. This MOU aims to promote cooperation between the two sides in the development of financial services and new service channels that leverage financial technology in order to deliver more efficient, more secured and more easily accessible financial services at a much lower cost. It also serves as a framework for the effective cooperation on digital payment facilitating financial services connectivity between Thailand and Viet Nam.

The signing of these MOUs marks a significant step in the close collaboration between Thailand and Vietnam in both financial stability and financial development. These will further lead to financial integration between the two countries and in the sub- region, supporting sustainable economic growth and development going forward.

Nataphong Kitnitchiva, chief operating officer of the Mall Group, told the media that the level of security during the day had been raised at all of its shopping malls, with checks of vehicles, baggage and belongings put in place at all vehicular and pedestrian entrances,

“We have instructed our cleaners to collect garbage in the mall area every hour. Patrol officers will check all the car park areas hourly while K9 officers and their dogs will walk around the building and all risk areas every three hours,” said Nataphong, adding that an administration unit staffed by 191 and firefighting officers has been set up and is on standby at its shopping malls, and will check the entire area around the clock.

Steel panels will be installed to prohibit any people from outside entering the shopping mall at night. All vehicles entering and exiting the shopping mall at closing time will be carefully checked.

“From our observation over the past week, we found that most people are carrying on as normal. They are showing strong interest in our promotional activities and have joined the marketing events and concerts at our malls,” added Voralak Tulaphorn, chief marketing officer of The Mall Group.

“However, we will not be careless, but intensify our security measures around the clock to raise confidence and ensure the safety of all customers coming to our malls,” she said.

Nattakit Tangpoonsinthana, executive vice president for marketing, Central Pattana (CPN), also said that no significant impacts had been noted as a result of the Bangkok blasts and that shopper traffic was normal.

He added that the company had no intention of postponing upcoming activities, such as the rotation of its creative lifestyle events like Japan Week, which is slated for Chiang Mai from August 16 to 18, and Nakhon Ratchasima from August 30 to September 1.

Nattakit said that CPN has intensified its security measures at all shopping complexes both in Bangkok and on the outskirts, in the south and in all tourism cities throughout the Kingdom, such as in Chiang Mai, Chiang Rai, and Pattaya.

“We have prepared our security staff and instructed them to carefully check all vehicles moving into our mall buildings and will also provide information on the action plan to all our retail tenants so that they can prepare to react in the event of an unexpected incident.”

“The safety of our customers and our colleagues is our top priority,” said Salinla Seehaphan, corporate affairs director at Tesco Lotus.

“Tesco Lotus has implemented several security measures to protect customers and colleagues in our premises. Due to the recent incidents, we have stepped up security measures at our retail stores and premises and these include more frequent patrols by our security teams along with wide coverage of CCTV technology for enhanced surveillance,” she said.

Kiatanantha Lounkaew, a lecturer at the Faculty of Economics, Thammasat University, said that the effect of recent blasts on Thai economy, especially the tourism sector, would be limited in scope. “This is because the incidents are believed to be politically motivated. If this is just a one-off event, it should not have a discernable impact on investment and tourism market. The challenges for authorities are to ensure that such incidents will not be repeated in the near future. Security measures must be heightened and made visible. News on the progress of the investigation should be released in a timely fashion to keep tourists and general populace informed,” said Kiatanantha.

4 bomb suspects arrested so far, police to seek warrants for seven more

Interior minister puts all agencies on full alert

He also voiced his belief that the bilateral strategic partnership will develop even more strongly, especially in trade and investment.

Thailand is currently Vietnam’s biggest Asean trade partner, with bilateral trade reaching US$17.3 billion in 2018 and expected to hit $20 billion in 2020. With the registered capital of over $8 billion, it ranks 10th among the 116 countries and territories and third among the Asean nations investing in Vietnam.

Vietnam always makes every effort to support Thai investors, PM Phuc affirmed, noting that the two Governments have also worked hard to protect the legitimate interests of their countries’ investors and businesses.

For his part, Veerathai said bilateral investment and trade links have been flourishing in recent years, and the BoT wishes to actively contribute to these partnerships.

Both sides should foster connections in finance–banking to bolster economic, trade and investment relations, he said, as there is huge potential for cooperation in banking supervision, payment facilitation and cross-border transactions.

Thailand always supports Vietnam’s initiatives within the framework of Asean and bilateral cooperation, including in the finance–banking area, the BoT Governor added.

At the meeting, PM Phuc said Vietnam has gained many socio-economic goals but is still willing to learn from Thailand’s experience, particularly in macro-economic governance and the finance–banking sector. It also wishes to work closely with Thailand to effectively cope with changes in the world.

As the BoT is crucial to businesses, Vietnam will create the best possible conditions for bilateral partnerships, especially the BoT’s cooperation with the State Bank of Vietnam in e-payment, he said, adding that the Thai central bank was an important bridge for the two countries’ strategic partnership in all fields.

Veerathai affirmed the BoT is ready to share its experience and meet cooperation demands for financial connection and other banking services.

The department will facilitate Good Agricultural Practices (GAP) and Good Manufacturing Practices (GMP) certification for exporters, especially during the golden period of durian and mangosteen production in the South. Failing to meet the standards could lead to loss of shipments.

Currently 425 southern fruit-packing plants have already been certified.

Department chief Sermsuk Salakpetch explained that Thailand currently exports 22 kinds of fruit to China valued at around Bt10 billion per year, especially durian, longan and mangosteen that are the favourites of Chinese customers. The two countries have agreed to share information lists of gardens and fruit-packing plants for mango, durian, longan, lychee and mangosteen. Meanwhile, China is sending the same information for apple, pear, orange and jujube to Thailand.

However, in a bid to raise the food safety standards of mutual fruit imports and exports, together with enhancing traceability so that an order to ban a shipment can be done on a case-by-case basis, the two countries have reached a food safety agreement for five kinds of fruit exported to the Thai and Chinese markets.

Based on agreed practices, fruit exports to the Thai and Chinese markets must clarify the registration number of the fruit packing plant’s Phytosanitary Certificate, together with mentioning the registration number of the plant and garden on all pieces of packaging. The agreement was reached on July 1 this year.

If there is any violation of the practices, that shipment will be returned to the place of origin, or destroyed in case of disease-infected fruit or if insects are found. In that case, the warning will be issued to Thailand, and China is authorised to temporarily suspend imports until the problem is verified and measures are taken to prevent it.

The department recently met with senior officials from the General Administration of Customs in Beijing to discuss the export issue by asking China to more frequently update names of certified gardens and fruit-packing plants than the current practice of once every three months, as a delay in updating information could damage Thailand’s fruit export business.

It also explained the country’s process of fruit-packing plant and garden registration, saying that some of them were in the process of registration.

Meanwhile, Wirat Thambamrung, director of the Office of Agricultural Research and Development Region 7 at the Department of Agriculture, said that officials have offered assistance to farmers and entrepreneurs for easier access to the registration procedure. They are now putting focus on durian and mangosteen to make them in line with the Chinese agreement on fruit exports.

He further added that sampling checks for GAP were done on durian at the plant to ensure they met the standard. A similar procedure is being followed for the plant’s licence renewal to make sure that all things meet GMP requirements.

Based on the office’s information, as of July 30, 425 of 461 fruit-packing plants had been certified.

“With our strict regulations, including GAP registration and packing-plant certification in the southern provinces, we can bring more fruit to the domestic and international markets,” he said. He added that the market’s acceptance of the country’s high quality and premium standards will help the fruits fetch a good price.

On Monday morning, the yuan depreciated by 7 per cent against the US dollar, marking the first time the renminbi has depreciated against the dollar since May 2008.

“The baht has not depreciated after the yuan’s weakening earlier [Monday] as Thailand’s market is still seen by foreign investors as a safe haven,” said Tim Leelahaphan, Standard Chartered Bank’s economist in an interview with The Nation.

The yuan’s depreciation may cause market sentiment in Thailand to drop briefly, leading to an outflow of capital from the Kingdom’s equity market, he said.

The Stock Exchange of Thailand (SET) reported a Bt2.6 billion outflow of foreign investment when the market closed on Monday.

However, Tim expects Thailand’s bond market to continue performing strongly.

On Monday, Thailand’s bond market saw in inflow of Bt1.46 billion from foreign companies, according to the Thai Bond Market Association (ThaiBMA).

The yuan’s depreciation, Tim said, will reinforce investors’ sentiment that Thailand is a relatively safe market in which to invest, especially after it’s stability and sovereignty ratings have been improved recently by rating agencies.

The baht was valued at Bt30.8 per US dollar on Monday, according to the Bank of Thailand.

Standard Chartered predicts the baht will remain below Bt31 per US dollar in the upcoming weeks, but expects it to depreciate back to around Bt31 baht by the end of the year.

Mana Nimitvanich, first vice president of Krungthai Bank’s Global Business Development and Strategy Group, said in a separate interview that the yuan’s depreciation will cause the market to worry that the trade war will worsen, leading to outflows from Thailand’s stock market.

Meanwhile, the baht has not been significantly impacted by recent events, he said. The country’s bond market is also expected to continue witnessing inflow as Thailand is still seen as a safe haven.

However, if the market is correct in predicting that the yuan’s depreciation will lead to retaliation from President Trump, further escalating the ongoing trade war, the economic fundamentals of Thailand and other countries in the region will be negatively impacted by Trump’s tariffs.

The planned economic stimulus package will support all groups of people, address the impact from the drought, help low-income groups, startups, small businesses and people holding welfare cards, Finance Minister Uttama Savanayana said on Monday.

The plan is the outcome of discussions between Deputy Prime Minister Somkid Jatusripitak, Uttama, top officials and executives of state-owned banks.

Uttama said the package would be implemented in two parts: part one will financed by the fiscal 2019 budget and part two will be financed under fiscal 2020.

Due to the delay in forming the new government, the fiscal 2020 bill is expected to become law in late January, with expenditure of Bt3.2 trillion.

The whole economic package would not cost much as the government will also use quasi-fiscal measures implemented by state-owned banks, he said.

The package is expected to be submitted to the Cabinet for approval this month, he said.

Thai governments usually direct state-run banks to provide cheap loans to targeted groups such as mortgage loans for low and middle-income groups by Government Housing Bank, cheap loans to farmers by the Bank for Agriculture and Agricultural Cooperatives, consumer loans to people by the Government Savings Bank, and loans to SMEs by the Small and Medium Enterprise Development Bank of Thailand.

The People’s Bank of China, the country’s central bank, released a statement on its website on Monday that the drop in the value of the renminbi against the US dollar was “influenced by the unilateralism and the protectionist measures”, as well as the expectation of more US tariffs on Chinese goods.

Investors also believe that the US Federal Reserve will cut its key interest rate again at the next meeting, closely following the 25 basis points cut last month, a brokerage said.

In keeping with overall market sentiment, the Stock Exchange of Thailand (SET) Index on Monday closed at 1,665.99, dropping 18.72 points from Friday with trade valued at Bt48.47 billion.

Foreign investors net bought Bt2.65 billion.

The Hong Kong Hang Seng closed at 26,151.32, dropping 767.26 or 2.85 per cent, as investors reacted to the US-China trade war and ongoing protests in Hong Kong.

Japan’s Nikkei closed at 20,720.29, dropping 366.87 or 1.74 per cent from Friday’s close.

The Singapore FTSE Straits Times Index closed at 3,194.51, down 66.60 points or 2.04 per cent from Friday.

The China Shanghai Index closed at 2,955.66, dropping 48.36 points or 1.61 per cent from Friday.

The Bursa Malaysia index closed at 1,610.41, dropping 16.35 points or 2.04 per cent from Friday.

The BoT has set out five guidelines for banks to consider as the national overseer aims to ensure banks remain sustainable.

Wajeetip Pongpech, assistant governor of the financial institutions policy group, will impose a new policy for retail loans in order to control household over-indebtedness and to force banking institutions to take more responsibility before approving loans, given that Thailand’s households debt has increased to 78.7 per cent of GDP.

High competition in the retail loan market has encouraged households to go deeper into debt, which has caused a high level of concern at BoT. When a household has received too much credit, it could lead to an unmanageable level of debt, especially in the low-income households at most risking of a debt-trap. Household debt could increase to a level where it affects the nation’s financial stability and economic growth.

Under the new policy, banking institutes are to consider three factors. First, they must demonstrate concern about credit risk, by examining a customer’s solvency and financial status to determine if they have sufficient cash flow to meet their daily needs.

Second, financial institutions need to design products which are appropriate to a customer’s repayment performance. Last, the loans officer should not push for a sale that creates over-indebtedness on the part of the customer.

Wajeetip also laid out five protocol to be followed in offering loans. The first involves creating an organizational culture concerned about the financial problems of costumers, while the second protocol would ensure that products are designed to meet the real demand of customers. Third, customers are due a clear explanation of the product on offer, and a lender must take into consideration a customer’s repay performance before approving a loan. Finally, the loaner must provide fair terms and conditions for customers.

Wajeetip added that the new policy for retail loans is just one of the new protocols that every banking institute is expected to follow under the sustainable banking model. The good-practices approach is to be agreed between the Thailand Bankers Association and commercial banks on August 13, with the policy fully implemented in 2020.