Despite local political problems, the overly strong baht and a slowdown in domestic consumption, Thailand's industry may yet enjoy sustained growth in the second half of 007, a senior Ministry of Industry official said.
Industrial Economics Office director-general Atchaka Brimble said the gross domestic product of the industrial sector for 007 could still grow and meet its targeted per cent expansion, of which vehicles and automobile parts, and the electronics industry sectors would lead the market due to their solid production foundations and the strong Thai currency, the baht, which would allow operators to import machinery to boost their production.
Imports of raw materials of these industries are also at a high level and should lower production costs, Mrs Atchaka said.
Sales of textiles and garments on the local market and exports are anticipated to slow during the third quarter due to the volatility in oil prices. Production and sales of cement during the quarter are projected to decline .2 and 1.73 per cent respectively compared to the corresponding period of 006 on the back of a sluggish property business sector due to poor consumer confidence.
Exporters should diversify their business risks as the baht continues to strengthen by exploring new markets and to lower their earnings in the form of US dollars as well by switching to other currencies," said Mrs Atchaka.
They should also maintain existing customers in order to keep revolving capital in the business," she said.
Thailand's industrial production index in June stood at 67.76, up from 58.47 in the corresponding period of 006, and production utilisation was at 6.76. TNA)