H2 prospects expected to be brighter
Brighter prospects are anticipated for a range of products for export in the second half of the year, according to government agencies and the private sector.
These include rice, sugar, electronics, automobiles, construction materials, machinery, gems and jewellery, and lifestyle products.
Malee Choklumlerd, director–general of the International Trade Department, said at a meeting with the department, most entrepreneurs from various sectors expressed optimism about shipment prospects in the second half of the year, particularly for food and agricultural products.
Exports of food and agricultural products were estimated at US$33.9 billion at the year-end, up 3% from the previous year. In particular rice would see an increase, expected at 9% this year, while sugar would grow 20%.
However, a tepid outlook was anticipated for rubber and tapioca, with shipments expected to drop 10% for each.
“The food sector is expected to stay in a very good shape this year, with exports driven largely by frozen, canned and processed seafood likely to grow 5.2% t his year to $17.56 billion,” she said. “Shipments may grow higher than that after Thailand was upgraded to Tier 2 status in the US’s Trafficking in Persons Report 2016.”
According to Ms Malee, shipments of canned tuna were also expected to fare better after Thai tuna fleets have been allowed to catch fish as usual, while exports of frozen and processed shrimp were likely to grow by as much as 12% this year after production recovered from the outbreak of early mortality syndrome.
Frozen and processed poultry exports were also expected to grow, by 5%, driven by rising demand from Japan after China was hit by food safety concerns.
Higher shipments were also anticipated for canned and processed fruits and vegetables, particularly for pineapple, coconut juice and coconut products.
With regard to industrial products, Ms Malee said Thailand was also likely to see better prospects, with the sector’s shipments expected to grow 3.1% this year to $123.90 billion.
Similarly, vehicle and auto parts shipments, gems and jewellery, and lifestyle products would also experience outstanding growth.
Ms Malee said the Commerce Ministry is still maintaining export growth of 5% this year, although several agencies including the Thai National Shippers’ Council recently revised down their export forecast this year to a 2% contraction.
However, she admitted the 5% growth is just a working growth target the authorities are trying to achieve.