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Buyers’ confidence in Thailand businesses is being tested as the Eurozone continues to impact the globe. According to the Bangkok Post, exporters have begun to see a negative effect from delayed payments by their trading partners and slow orders. Sectors such as computers and jewelry may be hit the hardest while some outside customers have declined to even open letters of credit for Thai exporters facing financial problems .
Shipments to secondary markets such as South Africa, India, and Eastern Europe have not faired well as the higher daily minimum wage has eroded the competitiveness of Thai products. According to Senior Economist at Standard Chartered Bank, a lack of political consensus in the euro zone could force Greece to leave the monetary union which would cause speculation on how the eurozone would affect other economies.
The Commerce Ministry announced exports fell by 1.5 per cent year-on-year in the first five months of this year, totaling US$93 billion. Prasarn Traiatvorakul, governor of the Bank of Thailand, said Thailand’s economic growth momentum had so far been driven by the recovery of manufacturing and domestic demand. He went on to say that the government has fallen short of the target for fiscal 2012 and needs to speed up its spending.
Thailand’s economy has also been affected by the floods of 2011 and the Red Shirt crisis of the previous year. According to Thailand lawyers (http://www.thailand-lawyer.com/) , however, individuals are still registering companies in Thailand. However, the types of Thailand company registrations have shifted from serviced businesses to export businesses with many more companies seeking to export agricultural commodities.
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if this crisis further gets worst, I seriously wonder if this government has either the skillset or the wherewithal to handle the effects of any fallout that threatens to impact the Thai economy.
do you remember how well the Samak and Somchai administrations handled the last international financial crisis?
they didn’t until Kuhn Korn started making the moves. Even former TRT finance guy Devakula was berating them in the press in the several months prior to PPP’s collapse. and remember how Chavalit with assistant Thaksin handled 1997 so smoothly?