Bringing Quick Recovery to Industrial and Export Sectors after Flood Damage

(11/12/2011)

Prime Minister Yingluck Shinawatra has stressed the need for all people involved to join forces in bringing quick recovery to industrial and export sectors after flood damage. The Prime Minister said that the Government was implementing various measures to restore investor confidence and help stimulate the local economy. She called for turning the recent flood crisis into an opportunity in order to restructure the country for the empowerment of all sectors of society on a sustainable basis. According to the Prime Minister, damage from the flooding is estimated at 1.3 trillion baht in terms of property and income. Despite its great impact on the economy, she said, the flood crisis led to joint operations in unity by the public, private, and civic sectors, as well as the military, in easing the hardships of the people. The public sector, in particular, is serving as the core in post-flood rehabilitation and in restoring confidence among both the people and investors. Touching on the issue of floods, ASEAN Secretary-General Surin Pitsuwan said that the supply chains in other ASEAN countries have also been affected by the flooding in Thailand. All ASEAN members would like to see quick recovery in Thailand, whose flood damage might reach more than 100 million US dollars. He suggested that Thailand focus on tourism rehabilitation, as well, in addition to recovery in trade and exports, saying that the Thai government should publicize the country through APEC, G20, and ASEAN, as a way of bringing about quick recovery. Deputy Prime Minister and Commerce Minister, Kittiratt Na-Ranong, stated that although orders for Thai goods from certain countries in Europe and Asia had dropped to some extent as a consequence of the flooding situation, Thai exports have continued to increase. They are expected to grow by 15 percent to about 220 billion dollars in 2011. He said that flood-hit factories were now undergoing rehabilitation and 90 percent of them would resume operations by the end of this year. He believed that the global economic slowdown and a decline in the purchasing power of people in the western hemisphere would not affect Thai export growth, as Thai products, in general, are not expensive and also have good quality. In order to achieve the export growth target of 15 percent next year, the International Trade Promotion Fund Committee had approved 329 export promotion projects, worth 332 million baht. Among the projects is the organizing of road shows, trade exhibitions, and other promotion activities. Industry Minister Wannarat Channukul said that despite the recent flooding, Thailand remains attractive to foreign investors. Foreign direct investment in the first 11 months of 2011 was valued at 354.5 billion baht, with 921 applications. Japan was the largest foreign investor in Thailand, submitting 498 applications.