European economic crisis to affect Thailand’s exports

BANGKOK, July 1 (TNA) – The economic crisis in Europe is very likely to impact Thailand’s exports and the flow of foreign investment into the country, according to the Export and Import Bank of Thailand (EXIM).

EXIM Bank president Apichai Boontherawara said he believed the European debt turmoil would dampen Thailand’s exports, particularly of luxury furniture and electrical appliances, and have an impact on foreign direct investment.

In 2009, he said, the Thai economy relied on foreign direct investment from developed countries to the amount of US$4 billion or more than half of
the total FDI, while the number of tourists from Europe surged to 29 per cent of the total foreign arrivals.

However, it is expected that FDI will flow into the country more slowly this year, as is the number of foreign tourists.

Thai exporters attempt to position their products in new markets to offset an anticipated shortfall in purchase orders placed by existing markets, he advised.

In particular, they should pay attention to expanding into ASEAN + 6 including ASEAN members and China, Japan, South Korea, India, Australia, and New Zealand, which have the total trade value of up to $6.4 trillion.

Mr Apichai said the EXIM Bank is ready to extend loans and export guarantee services to exporters.

Under the loan guarantee scheme, if exporters are unable to settle the payment of products, the bank will compensate damages of up to 50 per cent of the export bill value or a maximum of Bt3 million. (TNA)