Thailand International Political Economy

The World Trade Organization (WTO) ruled against the US in a Thailand trade dispute involving duties placed on Thai exports of polyethylene retail bags according to Plastics & Rubber Weekly.

Claims by the Thai government state that the US calculated duties using a controversial zeroing practice which prompted the US to file an anti-dumping complaint with the WTO back in 2003.

Dumping complaints typically involve exports that have been priced below the price charge in the home country or at a price below manufacturing cost.

French based Danone has announced it is considering Thailand as its hub for exporting to Singapore and to expand its market-share in Thailand according to the Bangkok Post.

A key driver of the move is the zero import tax the will take in effect in 2011 under the Asean Free Trade Area (AFTA).

Danone’s investment in Thailand of 572 million baht to open a production facility on Ayutthaya is expected to raise production capacity to 50,000 tons per year.

Danone is the world’s largest dairy product producer and is the number two cup yogurt market in the Thai market. In addition, the firm is expected to invest in Thailand 50 million baht to promote its Activia yogurt line over the next year.

The Thailand government through the Thai Central Bank has announced it will keep interest rates unchanged in order to help spur the Thai economy according to Businessweek.

Bank of Thailand Assistant Governor Paiboon Kittisrikangwan stated that the current interest rate of 1.25 is the most appropriate rate considering the current condition of the Thailand economy.

The rate decision by the Thailand Central Bank marks the sixth straight unchanged rate decision and as well as a five year low. [Read more →]

Inflation in the Thailand economy rose to a 14 month high as consumer prices accecerated as much as 4 percent in the first quarter according to Businessweek.

The key drivers of the inflation increase in the Thai economy include higher prices in commodities and food.

The Bank of Thailand expects continued inlfationary pressure on the Thailand economy throughout 2010. [Read more →]

The Thailand economy saw Thai consumer confidence rise to 69.1 in November according to Bloomberg.

The rise is up from 68 in October, which then marked a fall in the Thai economies consumer confidence index which tracks via a survey of over 2,200 respondents.

To help boost the Thai economy and consumer confidence moving forward, the Thai government plans to inject as much as 1.3 trillion baht on education, logistics, health care and transportation projects over the next three years in order to stimulate the Thai economy. [Read more →]

Interest rates in for the Thailand economy remained unchanged as a result of the Bank of Thailand decision this month according Reuters.

The decision the the Thai central bank continues the trend as Thai interest rates have stayed at the same since April after four cuts totalling 2.50 percent between December and April, which is in line with other countries considering the impact of the great recession.

Other November Thai economy data points include 1.3 percent in Thailand GDP growth and an increase of 1.9 percent in Thai inflation up from 0.4 percent. [Read more →]

Consumer prices in the Thailand economy rose 1.9 percent according to the Thai Commerce Ministry and Bloomberg.

The rise is the second consecutive increase in prices in the Thailand economy and is signaling a recovery from Thailand’s current recession.

While some may be concerned, the Thai government and the Thailand Central Bank are not expected to raise interest rates until the data suggest that Thai economic growth is sound. [Read more →]

Samak Sundaravej, the former Thai government Prime Minister who took office after Thaksin and was later ousted himself, died according to CNN.

A veteran of Thai government and Thai politics, Samak was forced to step down as Prime Minister after appearing on a cooking show for compensation.

Samak Sundaravej died of liver cancer and was 74. [Read more →]

The Thailand economy declined in Q3 year on year as Thailand’s GDP shrank by 2.8 percent according to AFP.

The poor Thai economic data, issued by Thailand National Economic and Social Development Board, represents the fourth consecutive decline in GDP despite the fact the decline is slowing as GDP declined 4.9 percent in the second quarter and 7.1 percent in the first.

Optimism about future growth in the Thai economy hinges on Thai exports, tourism and the stability of the current Thai political crisis that continues to plague the country overall. [Read more →]

Thailand was ranked as the 84th most corrupt country in the latest Transparency International report according to the Bangkok Post.

The ranking is a blow to the Thailand government and it will likely hurt Thai investment as it shows Thailand is getting more corrupt considering Thailand ranked 80th last year.

Singapore was ranked as the least corrupt and Somalia was ranked overall worst. [Read more →]

Thailand exports of rice are expected to increase by 10 million tons in 2010 according to Bloomberg.

The increase is due to an increase in demand by India which went through a server drought this year.

The increase in Thai trade demand for rice will likely cause the Foreign Trade Department to release some of its 5.9 million ton reserve in order to meet India’s rice demands. [Read more →]

Malaysia’s Fraser & Neave Holdings (F&N) plans to invest in Thailand $176.5 million according to FoodBizIntel.

The Thailand investment will go towards the development of two new dairy plants as the firm plans to become Southeast Asia’s largest canned milk producer with the expectation of $571 million in annual sales revenues. [Read more →]

The US based franchise Krispy Kreme Doughnut Corp. plans to invest in Thailand over the next five years according to AP.

While the terms of the Thailand investment were not disclosed, the doughnut firm plans to open as many as 20 locations in a partnership with The Thai company KDN Co. Ltd.

The Krispy Kreme investment in Thailand adds to Asian presence which already includes the countries of Philippines, Japan, and South Korea. [Read more →]

The Bank of Thailand has left interest rates unchanged in order to help spur the Thailand economy according to WSJ.

The current interest rate for the Thai economy stands at 1.25 percent and is expected to remain at this level throughout the rest of the year with a possible slight increase in 2010.

More concerning is that fact the Thailand economy is expected to decline by as much as 3 percent in 2009 as compared to many of its Asian neighbors that despite the global recession continue to show positive economic growth. [Read more →]

Consumer confidence in the Thailand economy rose to 68.4 from last month’s 67.4 according to Bloomberg.

The positive Thai economic news makes it the highest consumer confidence level since September of 2008 and is an important sign that things are improving for the Thailand economy despite continued political woes.

The Thailand economy measures consumer confidence through a nationwide survey of more than two thousand individuals. [Read more →]

The Thailand economy saw industrial production drop 10.3 percent in August marking a tenth straight month fall according to Bloomberg.

While the poor Thai economic news does cast a shadow on the recent hope of a global recession recovery, a Bank of Thailand director stated that the decline was due to “temporary” causes sighting factory-maintenance shutdowns and shortage of materials as key drivers.

Nonetheless, the good news for the Thailand economy is in the index of business sentiment which rose from 45 to 46.1 in August. [Read more →]

Ford, Crysler and GM, Coca-Cola and Cargill all plan to continue their investment in Thailand over the next few years according to Xinhua.

The big three US automakers estimate a combined Thailand investment of $297 million and Coke expects an investment in Thailand of at least $29 million in order to expand Thailand operations.

The Thai government is actively seeking and supporting foreign investments in Thailand as a means to become more competitive globally and regionally. [Read more →]

Thai exports hit a ten month high in August according to Bernama.

The positive Thai trade news comes despite the fact that Thai exports are down by 18 percent from August of 2008.

Key Thailand exports include rice, frozen seafood and rubber which have all declined in demand as a result of the global recession. [Read more →]

Consumer confidence in the Thailand economy rose to 67.4 for August and marks the third consecutive monthly rise according to Bloomberg.

The positive Thai economics news comes despite the fact the Thai economy shrank as much as 4.9 percent in the previous quarter.

Although conditions in the Thai economy are showing signs of improvement, the political turmoil that plagues the Thai government continues to add risk to further Thai economic growth. [Read more →]

Mitsubishi Motors Corp has announced it will leverage it existing Thailand investment by increasing production out of its Thai plant according to Bloomberg.

The Thailand investment news will add 1,330 Thai workers to the Thai economy in order to meet an increase in demand for its line of Triton pickup trucks and Pajero Sport SUVs.

The actual amount of additional output was not disclosed; however, current production based on July output was 5,603 units. [Read more →]

The Bank of Thailand announced it is considering a currency swap with China according to Bloomberg.

The agreement would allow for Thailand to settle Thai exports and Thai imports with its Chinese Thai trading partner in baht and yuan as opposed to the dominate reserve currencies such as the US dollar or the Yen.

According to Thai central bank Governor Tarisa Watanagase there is a trend towards trade in the form of yuan as opposed to the dollar.

Nonetheless, while such an inclination is a blow to the dollar, it will still be some time before the yuan gains significant traction as a reserve currency. [Read more →]

The Thai government and the Thai Central Bank have decided to keep interest rates unchanged in an effort to continue growth in the Thailand economy according to MarketWatch.

A statement by The Bank of Thailand went to say that there is still a high level of uncertainty with regard to the Thailand economy and the recovery from the global recession.

Interest rates were kept at 1.25 percent. [Read more →]

The Thai economy grew 2.3 percent in the second quarter of this year according to Dow Jones.

Key drivers of the increase in Thai economic growth include increased domestic consumption, Thai government spending and more importantly a strong demand for Thai exports.

While the up tick in Thailand’s GDP may seems meager as compared to other emerging Asian economies such as Vietnam and China, the positive Thai economic news shows clearly that the Thai economy may be coming out of the global recession. [Read more →]

The Thai Commerce Ministry announced that Thailand exports declined 25.7 percent in July from the previous year according to Bloomberg.

The key driver of the poor Thailand trade news is the lack of overseas demand as a result of the global recession.

Despite Thailand government efforts to stimulate the Thai economy and help stabilize the lack of orders for firms such as Hana Microelectronics and Delta Electronics that are hurting because of a decline in demand, growth in Thai trade and Thai exports will likely not resume until the global recession ends. [Read more →]

The Thailand government plans to import natural gas from Myanmar according to Reuters.

The Thailand trade news comes from a statement made by the Thai Energy Minister Wannarat Charnnukul who explained that the gas would come from block M9 in the Gulf of Martaban.

100 percent of Block M9 is owned by a subsidiary of Thailand’s PTT Exploration and Production. [Read more →]

Thailand exports declined 25.9 percent in June for an either consecutive month according to AP.

The key driver to the decline in Thailand trade is a clear lack of global demand in cars, electronics and other goods as the global recession continues to take hold.

Despite the 25.9 percent decline, which accounts for $12.3 billion in missing Thailand exports from a year earlier, the The Bank of Thailand has held its benchmark interest rate at 1.25 percent as an indication that the Thailand economy is possibly stabilizing. [Read more →]

NXP, leading leading semiconductor maker based out of the Netherlands, plans to invest in Thailand as much as $300 million according to the Bangkok Post.

The Thailand investment will enable semiconductor expansion out of NXP’s Bangkok Lak Si district plant which has the plant has hit maximum capacity of 10 to 15 million chips.

The Thai government welcomes continued invest in Thailand by NXP as the Dutch employer employs as many as 3,200 Thai jobs. [Read more →]

Ford Motor Company has announced it will in invest in Thailand and additional $500 million according to Reuters.

The Thailand investment will go towards a new car plant located in southern Thailand to produce as many as 100k Ford Fiesta and Mazda2 cars a year.

The new Ford investment in Thailand is through a joint venture with Japan’s Mazda and plans to export as much as 85 percent of production to other southeast Asian countries such as New Zealand and Australia as we as South Africa. [Read more →]

US based retailer Gap Inc. has announced plans to invest in Thailand according to Dow Jones.

While no specific monetary terms of the Thai investment were disclosed, Gap with partner with Thai based marketer Armin Systems Ltd in order to effectively penetrate the Thai market.

Gap’s plans to invest in Thailand will make Thailand the fourth Southeast Asian country for the Gap to plant stores. The other Southeast Asian countries that the Gap has presence include Singapore, Indonesia and the Philippines. [Read more →]

After months without red shirt protest, former Prime Minister Thaksin Shinawatra has once again stuck a thorn in the side of the Thailand government as his supporters staged a Bangkok rally outside the Bangkok’s Grand Palace according to the Wall Street Journal.

One of the goals of the anti Thai government protest included a drive to collect a million signatures as a means to clear Thaksin of any wrongdoing and to allow him to return to the Kingdom.

To pour salt on the wound, the Puea Thai party, which backs Thaksin, won a parliamentary seat in northern Thailand through special election.

Unfortunately for the Thai economy the Thailand government political drama continues. [Read more →]