Asia to become Thailand's main export market in 2013

BANGKOK, January 8 (TNA) Bangkok-based University of the Thai Chamber of Commerce (UTCC) says tbhat several Asian countries, covering the 10-member Association of Southeast Asian Nations (ASEAN), will become Thailand's main export markets in 2013, in lieu of such traditional markets as the United States, Europe and Japan. Director of UTTC's International Trade Study Center Utt Pisarnwanich predicted on Tuesday that Thai exports to the emerging Asian and ASEAN markets should expand by 8 per cent and 5 per cent year-on-year respectively this year. Utt foresaw, however, that total Thai export should grow by 3.1-7.2 per cent year-on-year in 2013, worth 238-246 billion US dollars. Utt cautioned that vulnerable global economic conditions, particularly those in the United States, Europe and Japan where an economic slowdown has persisted, should remain risk factors for Thai exports in 2013 with shipments of Thai products to the traditional major markets likely to grow only by 1.5 per cent on average, resulting mainly from a shrink in Thai exports to the European and Japanese markets by 3.6 per cent and 3.1 per cent year-on-year respectively. Utt pointed out that a new daily minimum wage hike to 300 baht in all areas across Thailand, effective from January 1, 2013, has also increased production costs of local producers; while reducing their competitiveness, coupled with impacts from a drop in farm products prices on the world market and a trend of the stronger Thai baht. According to the director, Thai exports expected to be mostly affected by the risk factors include rice, ready-made clothes and frozen seafood products. Meanwhile, Thailand has eyed expanding pharmaceutical exports to other ASEAN member countries to meet growing regional demand, with their total export value expected to soar from 27 million baht currently to over 100 million baht annually over the next few years. (TNA)