ID :
170292
Wed, 03/23/2011 - 14:31
Auther :
Shortlink :
http://m.oananews.org//node/170292
The shortlink copeid
FTI: Japan's disaster to slightly affect Thai economy
BANGKOK, March 23 (TNA) - The Federation of Thai Industries (FTI) projected Wednesday that Japan's historic disaster on March 11 will likely affect the Thai economy only in the short run and only 0.1 per cent, as the Japanese economy is likely to recover within half a year.
FTI Deputy Chairman Thanit Sorat publicly gave the latest forecast after his meeting with a group concerned parties, noting that local exporters of some eight categories of Thai food and construction material products, could even enjoy more shipments to Japan than expected, where rehabilitation projects for areas affected by the March 11 catastrophe are expected over the next three years. On the other hand, some 13 Thai industrial products, including automobiles and parts, electronics, electrical appliances, gems and jewelry and textile and garments which rely on imported materials from Japan, could be affected in the short term.
Sorat said FTI has proposed to the Thai government that it implement measures to allow more Japanese investment projects, to become an overseas hub for manufacturers from the Asian economic power. These, he suggested, should include greater tariff incentives from the Board of Investment of Thailand or BOI and a corporate tax cut for Thai business operators, to 18-20 per cent from the current 30 per cent, to maintain their competitiveness.
According to the FTI deputy chief, the current situation could be a prime opportunity for Thailand to draw more Japanese investment, as Vietnam, which has attracted most Japanese projects over the past five years compared with other ASEAN members, is now facing economic problems of its own.
The FTI deputy chief conceded, however, that the March 11 natural calamity in Japan would affect Thai tourism, with the number of Japanese arrivals in the Kingdom this year to reduce by some 100,000. Previous predictions had seen the total reach around 980,000 like last year, making expected revenues fall 15-20 billion baht short of those originally forecasted. (TNA)
FTI Deputy Chairman Thanit Sorat publicly gave the latest forecast after his meeting with a group concerned parties, noting that local exporters of some eight categories of Thai food and construction material products, could even enjoy more shipments to Japan than expected, where rehabilitation projects for areas affected by the March 11 catastrophe are expected over the next three years. On the other hand, some 13 Thai industrial products, including automobiles and parts, electronics, electrical appliances, gems and jewelry and textile and garments which rely on imported materials from Japan, could be affected in the short term.
Sorat said FTI has proposed to the Thai government that it implement measures to allow more Japanese investment projects, to become an overseas hub for manufacturers from the Asian economic power. These, he suggested, should include greater tariff incentives from the Board of Investment of Thailand or BOI and a corporate tax cut for Thai business operators, to 18-20 per cent from the current 30 per cent, to maintain their competitiveness.
According to the FTI deputy chief, the current situation could be a prime opportunity for Thailand to draw more Japanese investment, as Vietnam, which has attracted most Japanese projects over the past five years compared with other ASEAN members, is now facing economic problems of its own.
The FTI deputy chief conceded, however, that the March 11 natural calamity in Japan would affect Thai tourism, with the number of Japanese arrivals in the Kingdom this year to reduce by some 100,000. Previous predictions had seen the total reach around 980,000 like last year, making expected revenues fall 15-20 billion baht short of those originally forecasted. (TNA)
