Bangkok (VNA) – Theexport of Thailand’s canned tuna is expected to miss its target as thecountry’s currency, baht, is getting stronger, said the Thai Tuna IndustryAssociation on July 10.
The strengthening local currency also reducedcompetitiveness of Thai aquatic products, experts warned.
Apart from the baht appreciation, risingproduction cost also weighed heavily on the tuna business, making it hard forthe industry to reach the target of 80 billion THB in tuna export value thisyear, they added.
Experts also noted that weak global oil pricecut the incomes of Middle East countries, thus curtailing their purchasingpower.
Middle East is the biggest market of Thai tuna,making up 40 percent, followed by the United State at 20 percent; Australia 10percent, while the European Union, Japan and Canada’s combined share standaround 30 percent.
To survive in the long term, Thai tuna producersshould shift to other products with higher value to up their profit. Experts alsosuggest diversifying markets to reduce reliance on the Middle East market. Thenew potential markets are South Africa, Latin American and Asia.
Accordingly, export associations of theSoutheast Asia country have urged action from the government and the Bank ofThailand to stabilise the local currency to support exports which accounts for60 percent of the country’s gross domestic product (GDP).
However, total Thai exports in May surpassedexpectations with the value increasing by 13.2 percent to 676 billion THB (19.9billion USD), the highest in the last four years because of the strengtheninglocal currency. -VNA
The strengthening local currency also reducedcompetitiveness of Thai aquatic products, experts warned.
Apart from the baht appreciation, risingproduction cost also weighed heavily on the tuna business, making it hard forthe industry to reach the target of 80 billion THB in tuna export value thisyear, they added.
Experts also noted that weak global oil pricecut the incomes of Middle East countries, thus curtailing their purchasingpower.
Middle East is the biggest market of Thai tuna,making up 40 percent, followed by the United State at 20 percent; Australia 10percent, while the European Union, Japan and Canada’s combined share standaround 30 percent.
To survive in the long term, Thai tuna producersshould shift to other products with higher value to up their profit. Experts alsosuggest diversifying markets to reduce reliance on the Middle East market. Thenew potential markets are South Africa, Latin American and Asia.
Accordingly, export associations of theSoutheast Asia country have urged action from the government and the Bank ofThailand to stabilise the local currency to support exports which accounts for60 percent of the country’s gross domestic product (GDP).
However, total Thai exports in May surpassedexpectations with the value increasing by 13.2 percent to 676 billion THB (19.9billion USD), the highest in the last four years because of the strengtheninglocal currency. -VNA
VNA
