Weekly Economic & Commercial News & Report – Embassy of India 19th to 25th August 2017

Tapioca Price Control Planned
Deal aims to relieve local farmers’ losses

Bangkok Post, BUSINESS NEWS, 21 Aug 2017

 

Thai tapioca exporters have agreed to stop lowering prices to put a lid on the losses incurred by local farmers, industry officials said last week. Members of tapioca export agencies have agreed to work together to stop cutting prices for importers, mostly Chinese, in a bid to halt the domestic price from falling further, said Boonchai Srichaiyongpanich, president of the Thai Tapioca Trade Association. The Thai Tapioca Trade Association, Thai Tapioca Product Factories Association and the Northeastern Tapioca Association are scheduled to sign a memorandum of understanding (MoU) on the issue.

 

GDP growth forecast gets scaled up to 3.7% for year
The Nation, Economy, August 22, 2017

THE NATION’S top economic planning agency has raised its full-year forecast for economic expansion to 3.7 per cent, from 3.5 per cent, after export-fueled growth in second quarter surprisingly quickened to 3.7 per cent from the same quarter of 2016. Growth in gross domestic product (GDP) accelerated from 3.3 per cent in the first quarter, Porametee Vimolsiri, secretary general of the National Economic and Social Development Board (NESDB), said at a press conference yesterday. The faster rate of growth of in the second quarter was driven by exports, household consumption and private investment, the agency said.

 

New Excise Formula for Products, Services Approved
The Nation: Economy, August 23, 2017

The Cabinet yesterday approved a new excise formula for 13 products and four services, following a switch to calculations based on retail prices. Previously, the calculation method was based on manufacturing and import prices for the affected products and services. The change is effective from September 16, according to a source from Excise Department of Finance Ministry. Meanwhile, a 2 per cent increase in the excise for sugary drinks has been approved. The excise has been raised from 8.9 per cent. The change will take effect in two years. The lead-in time is meant to help producers revise their products by reducing the sugar content in their products, the source said.

 

Subsidy for Struggling Digital TV Channels
The Nation: News Feed. August 24, 2017 

The National Broadcasting and Telecommunications Commission (NBTC) yesterday resolved to allocate Bt616.464 million a year from the Broadcasting and Telecommunications Research and Development Fund as a subsidy towards the cost of ten high-definition (HD) digital TV channels transmitting their programmes to satellite and cable platforms. The transmission will run for |three years, beginning the current year. The ten HD channels are Channel 5, NBT, TPBS, MCOT HD, ONE HD, Thairath TV, 3HD, AMARIN TV, 7HD and PPTV.

 

Export target changed to 6 per cent
Khao Sod (Afternoon) | Aug 25, 2017

Pimchanok Vonkorpon, Deputy Director of the Trade Policy and Strategy Office, revealed that the Thai exports have been improving throughout the past seven months and are likely to continue growing. The Trade Policy and Strategy Office has increased its exports prediction range from 3.5%-5.5% to 5%-6%. The office predicted that the exports from July-December will achieve $19.18 billion on average. The exports for the whole year of 2017 are predicted to be $228.31 billion under the assumption that the Thai baht is 34-36 baht per dollar, crude oil price is $45-55 per barrel and the economy grow by 3.5%. Exports for electronic products, chemical products and rubber are likely to improve.

Rice exports have improved by 98.8% after the government released all of the rice in its stock and rice market is no longer suffer from price pressures. Imports were $125.61 billion or a 15.5% increase in the past seven months. Thailand has a current trade surplus of $6.78 billion. Jane Namchaisiri, President of the Federation of Thai Industries (FTI), stated that the Thai Industries Sentiment Index in July 2017 was 83.9, the lowest level in 10 months. This reflects that many Thai entrepreneurs are concerned over slow recovery in consumer consumption and want to see more stimulus measures from the government.

External

The growth of spending opportunity in India
Post Today | Aug 21, 2017

India’s economic development is perhaps 15 years slower than China’s and Southeast Asian countries’ but this means that India is adjusting and has relatively high possibility to grow further. India’s purchasing power per capita was very much lower than the US, Japan, South Korea and China in 2015.  India’s Prime Minister, Narendra Modi has a policy to build houses for poor people and gradually reduce the number of slums in the country. With at least 7% growth per year, India’s demand for products and services is growing very quickly. India aims to enhance the standard of living for its people.

 

Tourism agency plugs into 4.0
The Nation, Economy,  August 24, 2017

THE TOURISM Authority of Thailand (TAT) is adopting a Tourism 4.0 initiative to focus promoting uniquely Thai attractions that will promote quality and niche tourists. The authority will also promote new routes connecting Thailand with neighbouring countries in CLMV (Cambodia, Laos, Myanmar and Vietnam), to cash in on the development of the government’s Eastern Economic Corridor (EEC) project. Walailak Noypayak, TAT executive director for ASEAN, South Asia and the South Pacific Region, told a tourism forum hosted yesterday by Chulalongkorn University, that the government intended to apply the philosophy of the “sufficiency economy” based on the principles of traditional Thai culture into its development plan for a 4.0 economy.

 

Bilateral

Thailand to Be Regional Hub for Jet
The Nation: Corporate, August 21, 2017

India’s Jet Airways promises to cater for soaring passenger demand to Thailand
India-based Jet Airways’ business strategy in 2018 will focus on Asia with a plan to open more new routes in the region, including in Thailand. The airline plans to increase its local business and will take possession of 75 new Boeing 737 jets from June 2018 until 2020, according to Colin Neubronner, the airline’s senior vice president commercial for Asia Pacific and Southeast Asian Association for Regional Cooperation (SAARC). “Asia is showing aggressive growth in travel compared with others regions.

Up to 33 per cent of our international routes will come from the Asia market. This is the reason that we will expand our new Asian routes next year,” he said. Neubronner added that the company plans to increase its flights through Bangkok from its current five daily flights (three to Mumbai and two to New Delhi). There would also be new routes through Malaysia (Kuala Lumpur), Philippines (Manila), Indonesia (Jakarta) and China (Shanghai).  Neubronner said that Thailand would be its regional hub and act as a gateway to the CLMV countries (Cambodia, Laos, Myanmar, and Vietnam) and the company plans to increase its flights from Bangkok to Mumbai and New Delhi from next June.

 

India hoping to attract tourists from all over the world
Krungthep Turakij | Aug 23, 2017

It seems like Thai people have been more interested to visit India lately. India shows diversity in culture, nature and ancient sites which could be easily attracted many people. Indian government also wants to show the strength in tourism and they want to promote tourism in India by launching 4 main plans, including flexible regulation on E-Visa, stimulating aviation industry in the nation, promoting medical tourism and developing cruise pier. Indian government wants to stimulate revenue from tourism and India could be main rival of Thailand in tourism industry.

 

BOI suggests to eye on shining biz
Daily News (Morning) | Aug 23, 2017

Chokedee Kaewsang, deputy secretary-general of Board of Investment or Bol, said there were several interesting emerging markets that have opened for foreign investment, including the United Arab Emirates (UAE), Ethiopia, India, South Africa and Tanzania. He said that they have high potential for Thai investors. There are 1.3 billion populations in India and it has reflected the massive demand in Indian market. Automobile market in India has been growing rapidly. Furthermore, the industries will be benefited from lower price of production cost.

Seminar /Road show on World Food India 2017.
24th August 2017

Embassy of India, Bangkok in collaboration with the Federation of Thai Industries and the Ministry of Food Processing Industries, India organised a seminar /road show on World Food India 2017. Minister of State for Food Processing Industries of India, H.E.Sadhvi Niranjan Jyoti visited Bangkok on 24-25 August, 2017 and presided over the “Road Show” in the context of forthcoming “World Food India, 2017 to be held in New Delhi on 3-5 Nov, 2017.  Around 65 Representative from food industry, member of FTI and Thai chamber of commerce attended the event.

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