elef Posted December 22, 2006 Report Share Posted December 22, 2006 The Nation Today Link Strong growth ahead for construction, auto and electronics Construction, automotive and electronics industries will see continued strong growth next year following higher demand from both domestic and export markets, says the Federation of Thai Industries (FTI). However, the textile, ceramics and processed-foods industries will experience negative impacts from the appreciation of the baht and intense competition from neighbouring countries able to offer lower prices. Chairman Santi Vilassakdanont said since the baht had strengthened 14 per cent from the start of the year, the FTI estimated that the loss of exports as a direct consequence amounted to about Bt646.46 billion from total industrial-sector exports of US$130 billion (Bt4.74 trillion). Most exporters must face fierce competition from other countries, particularly Vietnam and China, in terms of currency exchange and cheaper production costs, he said. Industrial operators that should be seriously worried include those that use local raw materials but export their products, such as in the processed-food and ceramics industries, including One Tambon One Product entrepreneurs. At the same time, they must handle an economic slow-down in their main markets, including the US and European countries. Santi quoted from the International Monetary Fund's "World Economic Outlook", which says growth in the US is projected at 3.4 per cent this year before slowing to 2.9 per cent next year. Underlying this forecast is the expectation that growth in consumption and residential investment will slow further as the US housing market weakens but that business investment should rebound against a background of strong profits and limited spare capacity. The report also says real growth in aggregate gross domestic product in Europe is now projected at 2.4 per cent for this year but slowing to just 2 per cent next year. This will be caused by the possibility of a sharp currency appreciation, which could undercut exports and investment in the traded-goods sector. Further increases in energy prices in Europe will reduce disposable incomes and slow consumption, while recent falls in equity markets, if sustained, could also weigh on business and consumer confidence. For Thailand, Santi predicted continued growth in domestic consumption next year, particularly in the construction industry, because of the repair job following this year's major flooding in many provinces. The government has approved a budget of Bt450 billion for repairing ruined infrastructure, he said. Pramote Techasupatkul, president of the Siam Cement Group's cement operations, said demand for cement next year was expected to grow 5-10 per cent, or nearly the same as this year. "The mega-projects will increase demand for cement, but that will take time. After next year's bidding, the demand will start in the final quarter and continue into 2008," he said. "That will not increase the demand for cement in the first nine months of next year." Tata Steel (Thailand) president Santi Charnkolrawee said demand for steel would increase an average of 5-10 per cent next year from both domestic and foreign markets. He said the construction industry would have strong growth next year following high demand for condominium projects in the domestic market and that there would be strong demand for steel for infrastructure development in the Middle East and neighbouring countries, especially Vietnam. The FTI chairman said that as well as the construction industry, the electronics, auto-parts and automotive industries should record strong growth next year. The Industry Ministry projects 5-10 per cent growth for the electronics industry, particularly for manufacturers of hard-disk drives, thanks to rising local and international demand for electrical appliances equipped with hard-disk drives. However, Santi believes local operators will face fierce competition from importers offering cheaper prices. China is currently the largest market for Thai exporters in this industry. The ministry says production in the automotive industry is expected to grow 7-10 per cent next year. The effects of rising oil prices and high interest rates on the domestic market prompted auto-makers to increase exports from 35 per cent of production last year to 45 per cent this year. However, this might shrink to 30 per cent next year, due to the global economic turndown, especially in the US and Europe. But domestic consumption is predicted to climb next year. It says food-industry exports are expected to grow 10 per ce.nt, despite the lingering affects of flooding on crops. Thanks to receiving benefits from the US under the generalised system of preferences and less severe anti-dumping measures than its competitors, Thailand should increase shrimp exports 4-5 per cent next year. Santi said that after weighing up the expected positive and negative impacts on industry next year, the FTI forecasts that Thai industries will grow 7 per cent next year overall, the same rate as this year. Chalida Ekvitthayavechnukul The Nation Link to comment Share on other sites More sharing options...
Guest Posted December 22, 2006 Report Share Posted December 22, 2006 It's interesting to see several condo developments in North central BKK half finished and no additional work to them for a couple of months now...they went up in a hurry and then stopped...empty skeletons blotting the landscape...there's a few in the Lad Prao area... Link to comment Share on other sites More sharing options...
AF16 Posted December 22, 2006 Report Share Posted December 22, 2006 Does this mean cheaper,more expensive or same same housing? Link to comment Share on other sites More sharing options...
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