Thailand : Board of Trade predicts economic resurgence, maintains 3.5% GDP growth forecast

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The economy has already bottomed out and should head up steadily in the remaining months, driven mainly by rising private investment, increasing tourism arrivals and incomes, and the “digital economy” policy, which will help promote business, according to the Board of Trade of Thailand and Thai Chamber of Commerce.

The Board of Trade yesterday left its GDP growth prediction at 3.5 per cent for this year after seeing that the economy had already reached its low point. “After hearing comments from every provincial chamber of commerce, businesspeople shared the view that the economy is on a roll, particularly in tourism, retailing and investment,” Isara Vongkusolkit, chairman of the two associations, said yesterday.In April, the Board of Trade’s figures showed retail sales up by 1.5-2 per cent, compared with growth of just 0.5 per cent in the first quarter of the year. Collections of value-added tax were up 10 per cent in the first four months of the year.

Sales of life insurance policies grew 13-14 per cent year on year in the first quarter, while sales of non-life insurance were up 7-8 per cent, reflecting more investment by companies to build factories.

Despite the slowdown in exports, shipments from Bangkok Port expanded by 6.07 per cent and from Laem Chabang Port by 7.5e per cent in the first quarter, showing more trade with many markets, especially the United States and CLMV (Cambodia, Laos, Myanmar and Vietnam).

Isara said that with the brighter business outlook, the economy should show strength throughout next year.

Under the government’s digital economy policy, more companies would be promoted to expand in both the domestic and international markets, he said.

Vichai Bencharongkul, chairman of the Board of Trade’s Creative Digital Economy Committee, said that after more investment in telecommunications businesses, more sales in the industry and more services, the information and communications technology sector is expected to grow by 10 per cent a year and could reach Bt1.5 trillion this year.

The ICT sector was worth Bt1.2 trillion in 2013, accounting for 10 per cent of gross domestic product.

The Board of Trade has supported the government’s plan to invest more in expanding Internet broadband access to every household, to adopt technology for distance learning and to promote the growth of e-commerce.

For every 10-per-cent expansion in Internet broadband, GDP will grow by 1.3 per cent, the organisation believes. For every 10-per-cent growth of mobile phones, GDP will grow by 0.7 per cent.

Source : The Nation | May 20, 2015
Thomas D’Innocenzi
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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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