Shippers fear deeper slump for exports
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Shippers fear deeper slump for exports

In the wake of falling exports for the seventh straight month in July, exporters are concerned that Thai shipments may slip into a full-year contraction of between 4.5% and 5%.

Nopporn Thepsithar, chairman of the Thai National Shippers' Council (TNSC), said volatile foreign exchange and the weak prospects of the global economy could aggravate Thailand's export downturn.

Early last month, the TNSC cut its export forecast to a 4.2% decline.

The Commerce Ministry last Thursday said July exports fell by 3.56% year-on-year to US$18.2 billion.

The contraction was a slowdown from June's 7.87% year-on-year decline, the biggest drop in exports since an 8.15% fall in December 2011.

The continued weakness was due to soft demand amid a weak global economy and lower export prices, mainly for oil-related and farm products.

Exports to many major markets, especially Japan, the EU, Asean, the Middle East, Africa and China, remained in the red.

Shipments of automobiles and auto parts have recovered, while those of gems and jewellery, electric circuits, steel products, air conditioners and parts, and rubber have seen strong growth.

Agricultural and agribusiness exports fell by 5.1% year-on-year to $2.88 billion in July, while industrial goods shipments fell by 2.6% to $14.2 billion.

For the first seven months, exports totalled $125 billion, down 4.66% year-on-year.

"Based on July's performance, which showed the country fetched only $18.2 billion from shipments, we're afraid overall exports for the year will contract by more than the 4.2% expected," Mr Nopporn said.

"Thai exports will be subject to lower competitiveness due to the yuan devaluation, while the prices of commodities and farm products are expected to remain low, with the illegal, unreported and unregulated fishing allegations and the red flag issued by the International Civil Aviation Organization yet to be addressed."

Paiboon Ponsuwanna, an adviser to the TNSC board, urged the government to place greater emphasis on research and development and continue its digital economy push.

Veerathai Santiprabhob, tipped to be the next governor of the Bank of Thailand, recommended a long-term strategic trade plan for strengthening exports and underlined cooperation between the private and public sectors.

He suggested a focus on "national champion" products while promoting Thailand as a trading nation and regional hub for service industries.

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