Latest news with #Kriengkrai
Bangkok Post
4 days ago
- Business
- Bangkok Post
Thai growth projections upgraded on lower US tariffs
The local private sector has increased its forecast for Thai GDP growth this year to 1.8-2.2%, rising from an estimate of 1.5-2% following the recent US decision to reduce tariffs on imports from Thailand from 36% to 19%. At its meeting on Wednesday, the Joint Standing Committee on Commerce, Industry and Banking cited the US tariff reduction as a key factor contributing to the improved economic outlook. The committee also upgraded its forecast for Thai export growth from -0.5% to 0.3%, rising to a more optimistic 2-3% growth, aligning with positive global economic signals after the latest US tariff announcements for many other countries. Payong Srivanich, chairman of the Thai Bankers' Association, said the 19% reciprocal tariff imposed on Thai goods helps the nation avoid the worst-case scenario of losing competitiveness against neighbouring countries, which are now subject to similar tariff levels. However, Mr Payong cautioned that economic growth in the second half of the year is expected to slow, largely due to persistent export challenges. Headwinds include intensified price competition from import surges, declining foreign arrivals and tourism revenue, and the ongoing Thailand-Cambodia border conflict - all of which could dampen economic performance in the latter half of the year. In addition, Mr Payong said, Thailand is likely to face greater challenges from the final quarter of this year into early 2026. Given this outlook, Thailand needs to pursue business and economic reforms to better prepare for long-term uncertainties, Mr Payong said. Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, said the US tariff policy should serve as a wake-up call for Thailand to strengthen its long-term competitiveness, particularly in the manufacturing sector and small and medium-sized enterprises. He called for industrial restructuring and identification of priority sectors aligned with national strategies. Thai manufacturers must enhance production processes across supply chains and upstream industries to increase local content, improve productivity and reduce costs. Adoption of technology and innovation, along with workforce upskilling, including both Thai and migrant workers, was essential to building real economic value. Mr Kriengkrai said the private sector is ready to cooperate with the government, especially in providing data support. Thailand lacks critical industry-level structural data, such as the usage of primary and intermediate raw materials and regional value content, he said. To comply with new US export requirements, the private sector has begun collecting baseline data. However, to develop a comprehensive and reliable database, cooperation from public sector agencies is essential. Such data will be critical for policy decisions and international negotiations in the evolving global trade landscape, Mr Kriengkrai said. Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said that despite a US tariff rate regarded as consistent for the region, Thailand still requires economic adjustments in both the short and long term. In the near term, price competition is expected to intensify for both Thai exports and domestic products, which will face growing pressure from increased import competition due to expanded market access, he warned.
Bangkok Post
25-07-2025
- Business
- Bangkok Post
Investors unfazed by Cambodia spat
Thai investors are continuing to operate businesses in Cambodia despite the country's escalating territorial dispute with Thailand, which has dealt a blow to border trade, says the Federation of Thai Industries (FTI). Many companies in Cambodia believe the clashes between the two countries will not be protracted and should have only a short-term impact. "Entrepreneurs in businesses such as garments, shoes, and food and beverages are monitoring the situation and have yet to consider withdrawing their investment from Cambodia," said Kriengkrai Thiennukul, chairman of the FTI. He was speaking after the federation's recent talk with Thai companies in Cambodia. Many of them have no plans to revise their business direction in the country because they are operating with a long-term outlook, he said. "The companies have only adjusted stock management as well as logistics and transport to suit the situation," said Mr Kriengkrai. However, companies with labour-intensive manufacturing are concerned about a labour issue because they hire both Thai and Cambodian workers, who may engage in disputes with one another based on anger over attacks between Thai and Cambodian armed forces. Thai investors hope the two governments solve their conflicts through negotiations to avoid an adverse economic impact, noted the FTI. Thailand closed all border checkpoints along the Cambodian border, causing a loss of 500 million baht per day for border trade, said Mr Kriengkrai. On July 24, seven people including two schoolchildren were killed in an attack on a 7-Eleven convenience store within a PTT petrol station compound in Si Sa Ket's Kantharalak district. The petrol station is reportedly located 20 kilometres from the Cambodian border. PTT Oil and Retail Business said after the incident it will comply with the safety measures set by the government to ensure its customers, employees and surrounding communities are safe. The company operates many businesses in Cambodia, including retail oil sales and coffee shops. None of the provinces that border Cambodia have large oil refineries or large oil and gas storage facilities. However, officials have been instructed to ensure energy supplies are not affected as an energy shortage would worsen the situation, said Energy Minister Pirapan Salirathavibhaga.
Bangkok Post
22-07-2025
- Business
- Bangkok Post
Gamut of challenges await BoT governor
The new governor of the Bank of Thailand (BoT) will immediately face challenges as business leaders want him to push for measures to reduce loan interest rates and relax lending criteria among state and privately-run banks as well as avoid a surge in the value of the baht. "Whether or not we can deal with economic problems needs cooperation. We cannot simply rely on a single agency," said Vitai Ratanakorn, president of Government Savings Bank, who will assume the post of governor of the central bank in October, while airing his views during a talk held at the Economic Reporters Association on July 19. The issues of interest rates, loan rates and the value of the baht will require Mr Vitai's close attention as identifying the right solutions could reduce financial burdens, increase the competitiveness of businesses and stimulate consumer purchasing power, said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI). "Lower loan interest rates will allow small and medium-sized enterprises [SMEs] to access financial sources more easily, which is crucial for their operations," he said. SMEs, which represent the majority of the FTI's members, play a key role in driving the economy. Echoing Mr Kriengkrai, Isares Rattanadilok Na Phuket, managing director of Altimate Packaging Co, said he wants to see the new central bank governor seriously deal with the net interest rate spread of commercial banks, which is the difference between the interest rates for loans and deposits, as it is crucial to banks' profitability. A high spread affects SMEs, which are good debtors with have high potential to repay debt, as banks lend at higher rates than they pay for deposits. Mr Kriengkrai also wants Mr Vitai to work on plans to have banks ease lending criteria as difficulty accessing loans deals a blow to many businesses. The new governor needs to help exporters maintain their competitiveness by preventing a sharp appreciation of the baht, which would make Thai products more expensive, he added. "A stronger baht would also cause foreign tourists to delay their travel to Thailand," said Mr Kriengkrai. A range of issues from competitiveness, household debt to the impact of the aged society and political conflicts are structural problems that could lead to an economic slump, Mr Vitai said earlier this month.
Bangkok Post
16-07-2025
- Business
- Bangkok Post
Panel calls for new tourism investment
Thai tourism should not underestimate rivals in the region, notably Vietnam, which are investing heavily in tourism infrastructure such as high-speed rail as well as new attractions and hotels, said the subcommittee of the National Soft Power Strategy Committee. Marisa Sukosol Nunbhakdi, president of the tourism subcommittee, said Thailand needs new investment in tourism, particularly man-made developments, otherwise it will lose its competitiveness. Last year, Vietnam announced the construction of a US$67-billion high-speed railway connecting the capital Hanoi in the north with the southern city of Ho Chi Minh City, which is expected to become operational in 2035. Speaking at the SPLASH -- Soft Power Forum 2025 held last week, Mrs Marisa said this development would benefit tourism, considering Vietnam is a country with a beautiful long coastline that would be able to attract more hotel development. Vietnam has already welcomed leading luxury hotel brands such as the Capella Hanoi, designed by architect Bill Bensley. Hanoi also plans to build the new Hanoi Opera House, which aims to be the city's latest icon, she said. Kriengkrai Kanjanapokin, a member of the festival subcommittee of the National Soft Power Strategy Committee, said the developer of Ba Na Hills in Da Nang told him that the opening of the famous Golden Bridge helps attract tourists to stay longer and engage in more activities in the Ba Na Hills. Da Nang eventually became a leading tourism city thanks to those activities, he noted. "As Thailand has a lot of temples, many of which are beautifully crafted, we should tell a new story when it comes to the tourism experience, whether that be focused on faith tourism, architecture tourism or mental wellness," said Mr Kriengkrai. Mrs Marisa added that some countries use museums and the arts as city landmarks to attract visitors, such as the Guggenheim Museum in Bilbao, Spain, the new Grand Egyptian Museum in Egypt and Naoshima in Japan, which is known for contemporary art installations and museums. She said during a time when other sectors are being hampered by the US's new reciprocal tariffs, tourism development should be listed as a key performance index of all the ministries and public organisations to allow greater collaborations among different parties. Other opportunities for Thailand include rail tourism, which connects tourists to second-tier cities, as countries like Spain and France, each of which attract roughly 100 million visitors a year, all have efficient rail connectivity, she said. She said the State Railway of Thailand is planning to offer new air-conditioned railcars to cater to travellers' demands. Mr Kriengkrai said Thailand needs to redesign its traditional festivals to serve more than the conventional purpose in order to encourage tourists to stay longer.
CNA
07-05-2025
- Business
- CNA
Thai business group says US tariffs will deliver hit to economy
BANGKOK :Thailand's economy and exports will grow less than expected this year because of U.S. tariffs, a leading business group said on Wednesday, adding the country could lose market share in the United States if a tariff reduction was not secured. Southeast Asia's second-largest economy was now expected to grow between 2.0 per cent and 2.2 per cent this year, down from a previous forecast of 2.4 per cent to 2.9 per cent growth, the Joint Standing Committee on Commerce, Industry and Banking said. And exports, a key economic driver, were seen growing by between 0.3 per cent and 0.9 per cent this year, down from earlier projection of 1.5 per cent to 2.5 per cent growth, while expected tourist arrivals were cut to 36 million to 37 million, down from 39 million to 39.5 million. Thailand is among the Southeast Asian nations hardest hit by U.S. President Donald Trump's trade policy, facing a 36 per cent tariff on shipments to its biggest export market if a reduction cannot be negotiated before July. If the tariffs stand, the economy might grow by just 0.7 per cent this year, and lost export revenue over the next decade could be 1.4 trillion baht ($43 billion), said Kriengkrai Theinnukul, chair of the Federation of Thai Industries, part of the group. There was also a risk that other countries might negotiate better tariff terms and weaken Thai exports to the United States, Kriengkrai said. The United States took more than 18 per cent of Thai exports last year, worth $55 billion. Washington has put its trade deficit with Thailand at $45.6 billion. Kriengkrai said business was also worried about the strength of the baht, saying the government should make sure the currency does not appreciate too fast or become too volatile. The finance ministry last week cut its forecast for economic growth this year to 2.1 per cent from 3 per cent due to the impact of U.S. tariffs and a global slowdown. Thailand's economy has lagged regional peers since the pandemic, and the group said tariffs added to structural challenges such as high levels of household debt. ($1 = 32.64 baht)
