Export growth may lower to 10% next year

BANGKOK, 20 December 2010 (NNT) – Department of Export Promotion (DEP) Director General Nantawan Sakuntanak expects this year’s export growth to reach 24-25 percent, but the figure may reduce to only 10 percent next year.

Ms Nantawan pointed out that a major risk factor to the Thai export remained the baht appreciation, which would have a clear impact on the sector in the first quarter of 2011. She said the strong baht could turn away importers’ attention to countries with weaker currencies like Vietnam and China.

In addition, Thailand’s increased daily minimum wage and policy interest rate in combination with the soaring oil price are also contributing greatly to a hike in Thai exporters’ production costs. A number of buyers have put off their orders to keep a close watch on the Thai baht trend.

The DEP Director General estimated next year’s export growth to drop to 10 percent from 24-25 percent of this year.