ID :
22899
Mon, 10/06/2008 - 20:38
Auther :
Shortlink :
http://m.oananews.org//node/22899
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Thailand's vehicle exports look unfavourable next year: KRC
BANGKOK, Oct 6 (TNA) - Thailand's vehicle exports look unfavourable in the coming year as they are likely to experience risk factors from the global economic slowdown arising from the US financial crisis and the continued fluctuation of oil prices, according to Kasikorn Research Center.
The leading think tank projected the country's vehicle exports would grow
around 8 per cent in terms of volume next year compared with 14 per cent
expected for this year.
The export value is forecast to expand about 9.9 per cent this year versus
the17 per cent earlier projected for this year.
The expected decline in exports might dampen the government's ambition to
boost annual vehicle production to 2 million units in 2011 under the
second-phase auto industry master plan (2007-2011).
KRC advised entrepreneurs in the auto industry to adjust of their own
accord in the face of the US financial meltdown since the crisis could
affect the currency exchange rate and production costs of some kinds of
raw materials such as oil and steel.
What the entrepreneurs should do to control their costs is to hedge
against the currency exchange risks and closely monitor oil and steel
prices in the global market.
They should also attempt to diversify risks from the global economic
slowdown by counting on the free trade area (FTA) agreements Thailand had
made with many countries to expand trade with them and seeking new export
destinations with growth potential.
Due to the global economic sluggishness, KRC said the entrepreneurs might
be unable to raise their product prices in the long run.
So, they should try to reduce production costs by enhancing their
competitiveness through investment in production technology, establishing
a research and development centre, strengthening the local auto industry
network, and development of human resources.
KRC added the Thai government needs to prepare an auto industry promotion
plan together with the energy consumption scheme in the long term to give
investors a clear direction on implementing its investment projects such
as eco-car production, manufacturing vehicles powered by natural gas for
vehicles (NGV) and E85 gasohol.
In the first eight months of this year, Thailand produced 944,893
vehicles, up 15.8 per cent from the same period last year.
Of this, 529,530 units are for export and 415,363 units for local sales.
The country's imports of vehicles in the period amounted US$627.7 million,
up 56.8 per cent from the corresponding period the year before.
The leading think tank projected the country's vehicle exports would grow
around 8 per cent in terms of volume next year compared with 14 per cent
expected for this year.
The export value is forecast to expand about 9.9 per cent this year versus
the17 per cent earlier projected for this year.
The expected decline in exports might dampen the government's ambition to
boost annual vehicle production to 2 million units in 2011 under the
second-phase auto industry master plan (2007-2011).
KRC advised entrepreneurs in the auto industry to adjust of their own
accord in the face of the US financial meltdown since the crisis could
affect the currency exchange rate and production costs of some kinds of
raw materials such as oil and steel.
What the entrepreneurs should do to control their costs is to hedge
against the currency exchange risks and closely monitor oil and steel
prices in the global market.
They should also attempt to diversify risks from the global economic
slowdown by counting on the free trade area (FTA) agreements Thailand had
made with many countries to expand trade with them and seeking new export
destinations with growth potential.
Due to the global economic sluggishness, KRC said the entrepreneurs might
be unable to raise their product prices in the long run.
So, they should try to reduce production costs by enhancing their
competitiveness through investment in production technology, establishing
a research and development centre, strengthening the local auto industry
network, and development of human resources.
KRC added the Thai government needs to prepare an auto industry promotion
plan together with the energy consumption scheme in the long term to give
investors a clear direction on implementing its investment projects such
as eco-car production, manufacturing vehicles powered by natural gas for
vehicles (NGV) and E85 gasohol.
In the first eight months of this year, Thailand produced 944,893
vehicles, up 15.8 per cent from the same period last year.
Of this, 529,530 units are for export and 415,363 units for local sales.
The country's imports of vehicles in the period amounted US$627.7 million,
up 56.8 per cent from the corresponding period the year before.
