Thailand - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Thailand
| Official Name | Kingdom of Thailand |
| Capital | Bangkok |
| Location | Southeastern Asia, bordering the Andaman Sea and the Gulf of Thailand, southeast of Burma |
| Area | total: 514,000 sq km land: 511,770 sq km water: 2,230 sq km |
| Climate | tropical; rainy, warm, cloudy southwest monsoon (mid-May to September); dry, cool northeast monsoon (November to mid-March); southern isthmus always hot and humid |
| Terrain | central plain; Khorat Plateau in the east; mountains elsewhere |
Editor PicksBrowse Asia News Archive
ICBC Bank May Buy Stake in ACL Bank Pcl From Bangkok Bank
The Thai government may approve ICBC's bid to buy its shares in ACL, the Kao Hoon newspaper reported May 20, citing Finance Minister Korn Chatikavanij. Korn said he will support the deal if the takeover benefits the Thai bank, according to the report.
Bangkok Bank Pcl, Thailand's biggest lender, agreed to sell its stake in ACL Bank Pcl to Industrial & Commercial Bank of China Ltd., the world's biggest bank by market value. "We are done with the talks, now it's up to the finance ministry," Kosit Panpiemras, the Thai bank's chairman, told reporters today, adding that ICBC also wants to buy the ministry's stake in ACL. Bangkok Bank said Nov. 21 it aimed to complete the sale of a 19.3 percent stake in ACL, worth $33 million at yesterday's close, to ICBC by the end of 2007. The deal was delayed pending a plan to raise overseas ownership limits in Thai banks to 49 percent. Thailand's government holds 30.6 percent of ACL. A deal would add to ICBC's emerging-market holdings as the state-owned bank continues an overseas expansion drive begun in 2006 with the purchase of 90 percent of PT Bank Halim Indonesia. The firm agreed to buy 79.9 percent of Macau's third-biggest bank in August and bought a fifth of South Africa's Standard Bank Group Ltd. in October, the largest overseas acquisition by a Chinese lender.read source article
Thai Exports Plunge but Improvement is Predicted
Thailand's exports for the month of May dropped dramatically since 1992 due to lack of demand for products. Shipments declined 26.6 percent from the prior year, according to the Commerce Ministry's Permanent Secretary Siripol Yodmuangcharoen.
Thailand's exports for the month of May dropped dramatically since 1992 due to lack of demand for products. Shipments declined 26.6 percent from the prior year, according to the Commerce Ministry's Permanent Secretary Siripol Yodmuangcharoen. An Economist at Capital Nomura Securities Pcl in Bangkok, Nuchjarin Panarode said the drop has steadied and other economic indicators support the prediction that exports may improve. Exports have fallen about 15-19 percent in 2009 and perhaps will continue to fall at a slower rate in the third quarter, but the Prime Minister asserts that exports will return to growth by the fourth quarter of the year. About 70 percent of Thailand's economy relies on shipments. A less severe drop in exports is predicted as companies like Hana Microelectronics Pcl and KCE Electronics Pcl ship more products. Thailand's industrial output actually increased in April since exporters' customers began rebuilding stockpiles, expecting a boost in demand. Richard Han, chief executive officer from Hana affirmed that demand had increased from April to May. They expect demand from China and the rest of the continent to help their exports. Since the country's imports are still relatively low, the economy will not worsen, and it might be positive for net exports, as stated by Capital Nomura's Nuchjarin.Thailand: Saha Calls For Subsidies
Saha Group, Thailand's biggest consumer products conglomerate, called for the government to provide subsidies to companies to help them save their workers from layoffs during the economic crisis.
Saha Group, Thailand's biggest consumer products conglomerate, called for the government to provide subsidies to companies to help them save their workers from layoffs during the economic crisis. Boonchai Chokwatana, president of Saha Pathanapibul, a subsidiary of Saha Group, said that the government should switch some of its intensive vocational training budget worth 6.9 trillion baht to help save workers from layoffs, arguing that training people does not guarantee them a job. The National Economic and Social Development Board predicted that Thailand would have at least 1 million unemployed people this year, about 2.5 percent of its workforce.read source article
Thailand: FTI Still Seeks B380m Retraining Budget
The Federation of Thai Industries (FTI) is still seeking government approval for its proposed skill retraining budget worth 380 million baht.
The Federation of Thai Industries (FTI) is still seeking government approval for its proposed skill retraining budget worth 380 million baht. According to Taweekit Chaturacharoenkhun, the FTI deputy chairman overseeing employment, the Thai government has largely overlooked their proposal. The FTI's proposed projects were also not included in the 6.9 billion baht government budget allocated to curb unemployment. The 380 million baht would go to a pilot project to retrain 57,00 workers from 315 factories across all industries over four months.Thailand Trade Surplus Reaches 18-Year High
Thailand's trade surplus reached $3.58 billion in February, its widest trade surplus in 18 years.
Thailand's trade surplus reached $3.58 billion in February, its widest trade surplus in 18 years. The widening of the trade surplus is attributed to the 40.3% drop in imports, its sharpest drop in 11 years. The decline in imports reflects lower demand for raw materials among manufacturers and falling oil prices. The large decline in imports, particularly of raw materials and capital goods, signals that manufacturing exports are likely to decline in the next few months. Exports, which account for 70% of the economy, sank for the fourth consecutive month by 11.3% from a year ago to $11.73 billion.read source article
Thailand: 15 Years of Free Education Program Launched
The government distributed 18 billion baht among over 40,000 local schools throughout the country to start its program of 15-years free education on Wednesday.
The government distributed 18 billion baht among over 40,000 local schools throughout the country to start its program of 15-years free education on Wednesday. A total of 18.257 billion baht was transferred to public and private schools nationwide. The program aims to help alleviate the financial burden carried by parents and also help stimulate the economy. The money would benefit students from kindergarten to high school, including vocational education inside and outside the formal education system. The policy would cover fees for education, books, education tools, student uniforms and recreational activities for about 11.8 million students.Browse Asia News Archive
Trade Agreements
ASEAN - China Free Trade Area
The ASEAN - China Free Trade Agreement will apply in an area involving 1.7 billion consumers, making it the world's largest trading area. The agreement currently establishes a zero-tariff market. The agreement now contains trade in goods, services and dispute settlement. Investment is still under negotiation.
ASEAN - Korea Free Trade Area
Under the ASEAN- Korea Free Trade Agreement, Korean businesses will gain access to the ASEAN market, which contains nearly 500 million people. The agreement contains trade in goods and tariffs will be either eliminated or reduced on Korean products. http://www.aseansec.org/18063.htm
Global System of Trade Preferences among Developing Countries
Algeria
Argentina
Benin
Bolivia
Brazil
Cameroon
Chile
Colombia
Cuba
Ecuador
Egypt
Ghana
Guinea
Guyana
Iran
Iraq
Libya
Mexico
Morocco
Mozambique
Nicaragua
Nigeria
Peru
Sudan
Tanzania, United Republic Of
Trinidad And Tobago
Tunisia
Venezuela
ZimbabweThe Global System of Trade Preferences arose out of the United Nations Group of 77. The Group first appeared interested in 1976 to develop a global system of trade for developing countries. Over years of negotiations, the agreement was signed by the participating members of the Group of 77. The members are currently looking to expand their economic ties to other developing countries in Asia, Latin America and Africa. http://www.unctadxi.org/templates/Page____6207.aspx
Thailand – Australia Free Trade Agreement
In Force since 2005, the Thailand-Australia Free Trade Agreement (TAFTA) is a market opening agreement which allows Australian products greater access. Upon entry into force, Thailand eliminated more than half of its tariff, which over a significant amount of Australian exports. While Australian exports were previously pushed out of the Thailand market due to quotas and high tariffs, it now has access in numerous areas. http://www.thaifta.com/english/eng_au.html
Thailand – New Zealand Closer Economic Partnership Agreement
In force since 2005, the New Zealand-Thailand Closer Economic Partnership (CEP) will open up the Thailand market to New Zealand exporters. All tariffs on New Zealand goods to Thailand will be eliminated by 2025 and New Zealand will eliminate all tariffs on Thai goods by 2015. The New Zealand government said in a press statement, "The CEP is seen by both sides to be not just of economic importance but also of strategic importance. It will make both countries more competitive in the global market place by encouraging Thais and New Zealanders to pool their expertise, ideas, technology and resources.” http://www.mft.govt.nz/tradeagreements/thainzcep/pdfs/thainzcep-december2004.pdf
Thailand – People’s Republic of China Free Trade Agreement
Limited to agricultural products, the Thai-China Free Trade Agreement entered into force in 2003, and negotiations on a more comprehensive agreement are expected to conclude before 2010. http://english.people.com.cn/200506/19/eng20050619_191069.html
Trade and Investment Framework Arrangement between the United States of America and the Association of Southeast Asian Nations
United States of AmericaThe Enhanced partnership between ASEAN and the United States will increase cooperation and understanding in the areas of politics, economics and safety. EAI, Enterprise ASEAN Initiative, will strengthen economic cooperation and will allow and increase of trade and investment between both parties. Both sides have also vowed to work together on various projects in the development arena including, fighting infectious disease and disaster relief. http://www.ustr.gov/assets/Trade_Agreements/TIFA/asset_upload_file932_9760.pdf
Trade Organizations
ASEAN Plus 3
Forum as a coordinator of cooperation between ASEAN and China, Japan and South Korea.
Asia Cooperation Dialogue (ACD)
The Asia Cooperation Dialogue (ACD) is an International Organization to promote Asian cooperation at a continental level, helping to integrate the previously separate regional organizations of political or economical cooperation such as ASEAN, SAARC
Asia-Pacific Economic Cooperation (APEC)
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions (styled 'member economies') to discuss the regional economy, cooperation, trade and investment. The membership is claimed to account for approximately 41 percent of the world's population, approximately 56 percent of world GDP and about 49 percent of world trade. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat.
Association of Southeast Asian Nations (ASEAN)
Association of Southeast Asian Nations, commonly referred to as ASEAN, is a geo-political and economic organization of 10 countries located in Southeast Asia, which was formed on August 8, 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Its aims include the acceleration of economic growth, social progress, cultural development among its members, and the promotion of regional peace.
Ayeywady-Chao Phraya-Mekong Economic Strategy
The Ayeywady-Chao Phraya-Mekong Economic Strategy (ACMECS)was formed as a political, economic and cultural organization. The ACMECS places an emphasis on using self help and partnership to achieve sustainable development, including poverrty reduction, in line with the UN Millennium Development Goals.
Bay of Bengal Iniative for MultiSectoral Technical and Economic Cooperation (BIMSTEC)
The Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia. The member nations of this group are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.
Centre on Intergrated Rural Development for Asia and the Pacific (CIRDAP)
The Centre for Integrated Rural Development for Asia and the Pacific (CIRDAP) is a regional intergovernmental and autonomus organization
Council for Security Cooperation in the Asia Pacific (CSCAP)
The Council for Security Cooperation in the Asia Pacific (CSCAP) is a non-governmental (second track) process for dialogue on security issues in Asia Pacific.
East Asia Summit (EAS)
The East Asia Summit (EAS) is a Pan-Asia forum of 16 countries in East Asia, with ASEAN in a leadership position.