Thailand’s surging baht hurts exporters

 

Bangkok (VNA) – Thailand’s exporters are estimated to lose as much as 500 billion baht (nearly 17 billion USD) worth of income from the strong baht this year, with small-scale entrepreneurs hit the hardest, according to Visit Limlurcha, Vice Chairman of the Thai National Shippers' Council (TNSC).

Exporters have lost about 200 billion baht (about 7 billion USD) worth of income from the impact of the strong baht in the first five months of the year, he said.

If the baht still maintains its gain while responsible agencies have not come up with any measures to rein in the capital inflow, we believe Thai exporters, most of which are small and medium-sized ventures, will lose 400-500 billion baht worth of income, the Bangkok Post quoted the TNSC Vice Chairman as saying.

This will eventually affect the capability of many exporters to pay bonuses or extra rewards, as well as overall spending power, he said.

The baht averaged 32.48 to the US dollar in 2018 and is now moving in a range of 30.50-30.60.

Meanwhile, acting Commerce Minister Chutima Bunyapraphasarasaid said on July 3 that the ministry assigned the International Trade Promotion Department to map out an export stimulus plan for the second half to push for export growth of 3 percent as targeted.

Trade promotion agencies should focus more on each region of the world, each country and each city, including secondary cities, she said.

The department should also beef up facilitating and stimulating Thai investment overseas, Chutima said.–VNA