Electronics stages rebound after floods

Exports expected to hit pre-deluge levels this year, FTI says

Thailand's electronics industry can expect export growth to be close to that before the 2011 floods, according to the Federation of Thai Industries (FTI).

Meanwhile, the Ministry of Industry plans to formulate a strategic plan for sustainable development of the industrial sector.

Speaking at a seminar on "Factories of the Future for Thailand 2013", Suphachai Suthipongchai, chairman of the electrical and electronics club under the FTI, said this industry had been staging a recovery since the third quarter of last year.

Currently, nearly 100 per cent of flood-affected factories have returned to full production, except for those that relocated to other areas of the Kingdom or to foreign countries. Those that moved did so because their parent companies and importers required risk mitigation to prevent supply shortages should the Central region face such difficulties again.

Suphachai expects the value of electronics exports this year to reach just over Bt1 trillion, up 1.45 per cent from last year's Bt997.58 billion.

This year's export figure will likely come close to the 2010 amount, but may not rise much mainly because of the US and European economic problems, which affect global demand for electronics.

Thai exports of electrical appliances are expected to touch Bt759 billion, up about 4.5 per cent from last year's figure of Bt726.33 billion.

Overall Thai export growth is projected at 10 per cent on weakening demand in the United States and Europe, which face prolonged economic problems.

Thailand's main appliance exports are air-conditioners, refrigerators and washing machines. Demand in Indochina for such products is rising, and that could provide more opportunities for Thai suppliers.

The electrical and electronics industry sees a shortage of labour, including engineers but also non-skilled workers, as its major obstacle, Suphachai said, adding that this industry's workforce would likely be headhunted by the automotive industry for similar work and higher income.

After the minimum wage rose to Bt300 per day nationwide, many workers returned from the Central region to their home provinces. An evaluation will be made in the next six months to judge the impact from this amid export improvement.

Atchaka Sibunruang, deputy permanent secretary of the Ministry of Industry, said it was preparing a national strategic plan for 2013-18 under the framework of the National Economic and Social Development Board.

The national plan aims to build a sustainable economic base for the next 10-15 years to upgrade Thailand from a middle-income country.

The ministry has set a policy for development of the food industry throughout the supply chain, while promoting high-technology, environment-friendly and alternative-energy industries and upgrading small, medium-sized and One Tambol One Product (Otop) enterprises.

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Article source: http://www.thethailandlinks.com/2013/01/16/electronics-stages-rebound-after-floods/