ID :
160603
Sun, 02/13/2011 - 12:32
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Shortlink :
http://m.oananews.org//node/160603
The shortlink copeid
Thailand implements 3 measures to cope with devaluation of Vietnamese dong
BANGKOK, Feb 13 (TNA) - The Thai Ministry of Commerce is implementing three measures to cope with Vietnam’s devaluation of its dong currency which affects Thai exports.
The State Bank of Vietnam announced last Friday (Feb 11) to cut its dong reference rate by 9.3% from 18,932 dong per US dollar to 20,693 dong per US dollar. The devaluation took immediate effect and will certainly affect Thailand as Vietnam is an arch rival of Thailand in many categories of products in global markets.
Thai Commerce Minister Porntiva Nakasai has told the Export Promotion Department to urge commercial attaches worldwide to immediately implement three measures. Firstly, they are told to maintain the market shares of Thai products especially in the markets where Vietnam is an archrival namely the United States, the European Union and Southeast Asia. Secondly they must help Thai exporters reduce their logistic costs and thirdly they must conduct activities to promote Thai products in important markets.
The commerce minister said that the devaluation of dong would make Vietnamese products more competitive in terms of prices, especially rice. In 2010 Vietnam exported rice outstandingly in terms of both quantity and value. Its rice export amounted to nearly 7 million tons and is estimated at over 3.23 billion US dollars.
While being an arch rival of Thailand in exports, Vietnam is an important market for Thai exports. The amount of Thai exports to Vietnam is the ninth biggest among Thai exports to all markets and accounts for 3% of all Thai exports. In 2010, the value of Thai exports to Vietnam was estimated at 5,845 million US dollars. The amount rose by as much as 25% and Thailand enjoyed a trade surplus worth 3,293 million US dollars with Vietnam.
The Commerce Ministry predicts that the devaluation of dong will make Thai exports to Vietnam more expensive and reduce the purchasing power of Vietnam when it is to buy Thai products. This will have some impacts on Thai exports to Vietnam. (TNA)
The State Bank of Vietnam announced last Friday (Feb 11) to cut its dong reference rate by 9.3% from 18,932 dong per US dollar to 20,693 dong per US dollar. The devaluation took immediate effect and will certainly affect Thailand as Vietnam is an arch rival of Thailand in many categories of products in global markets.
Thai Commerce Minister Porntiva Nakasai has told the Export Promotion Department to urge commercial attaches worldwide to immediately implement three measures. Firstly, they are told to maintain the market shares of Thai products especially in the markets where Vietnam is an archrival namely the United States, the European Union and Southeast Asia. Secondly they must help Thai exporters reduce their logistic costs and thirdly they must conduct activities to promote Thai products in important markets.
The commerce minister said that the devaluation of dong would make Vietnamese products more competitive in terms of prices, especially rice. In 2010 Vietnam exported rice outstandingly in terms of both quantity and value. Its rice export amounted to nearly 7 million tons and is estimated at over 3.23 billion US dollars.
While being an arch rival of Thailand in exports, Vietnam is an important market for Thai exports. The amount of Thai exports to Vietnam is the ninth biggest among Thai exports to all markets and accounts for 3% of all Thai exports. In 2010, the value of Thai exports to Vietnam was estimated at 5,845 million US dollars. The amount rose by as much as 25% and Thailand enjoyed a trade surplus worth 3,293 million US dollars with Vietnam.
The Commerce Ministry predicts that the devaluation of dong will make Thai exports to Vietnam more expensive and reduce the purchasing power of Vietnam when it is to buy Thai products. This will have some impacts on Thai exports to Vietnam. (TNA)
