Japan is Thailand's second largest export destination. Impact on Thai exports will be felt in second half of the year.
Thai exports likely to be shaken by Japan quake by Phusadee Arunmas
The disaster in Japan may cause Thailand's exports to drop by US$1.47 billion or 44.1 billion baht from earlier projections this year, with the actual impact to be felt in the second half.
The disaster would reduce Japan's GDP growth by a half to a full percentage point this year from a projection of 1.6% growth predicted by the International Monetary Fund, said the Center for International Trade Studies at the University of the Thai Chamber of Commerce.
Aat Pisanvanich, the centre's director, said Japan was the second largest export destination for Thailand so a 1% cut in its growth would mean a 7.2% reduction in exports to Japan, $735 million to $1.47 billion or 22-44.1 billion baht.
Therefore, overall exports from Thailand would be around 0.3 to 0.7 points lower than the projection of 12% this year. The projection has not yet taken into account the impact of Japan's economic growth on the global economy.
For farm products, the impacts include 7.5% on prepared meat and fish - which accounted for 7.4% of total exports to Japan - 6% on sugar and 8.7% on cereals. For industrial products, the impact will be seen in electrical machinery, nuclear reactors, rubber products, automobiles and cosmetics
He said the short-term impacts would include the delay of new investment in Thailand since Japanese subsidiaries overseas may need to send their profits home to assist the parent companies.
Vasit Taepaisitphongse, chief operating officer of the food exporter Betagro Group, said its Japanese trading partners had indicated rising demand due to the closure of food factories in the north due to insufficient energy supply.
Japan now still has the food stocks sufficient for about three to four months but there are currently problems with distribution. Fuel supply has been reduced as a result of fires at its oil refineries
What our partners want is cooperation for continuous supply of products. They will try to place more orders at the old prices so we will try to fulfil their requests as best as we can," he said.
The Export Promotion Department yesterday called a meeting with executives of 18 industrial groups exporting products to Japan. The exporters said their current problem was that products were stuck at ports or warehouses due to logistics and power shutdowns. They expect the orders to resume normally next week
Panisuan Jamnarnwej, president of the Thai Frozen Foods Association, said an initial assessment found damages are around 60 million baht as products are still in chilled warehouse. The association contacted Japanese partners to immediately distribute them to help tsunami victims so that Thai exporters can refill the stocks free of charge.
The association expects the situation may reduce exports of Thai frozen food to Japan by 1% from the target of 120 billion baht this year as the Japanese will be more cautious in spending. They will seek lower-priced products amid uncertainties about more disasters.
Pimjai Matsumoto, managing director P&F Techno Co, a fruit exporter to Japan, said Thai exporters should maintain their standards to be able to export to the country, which will need more fresh produce such as asparagus, okra and pineapples.
Separately, a study by the Export-Import Bank of Thailand's research unit showed that Thai exports may be in a difficult position as the market share of Thai products had barely increased over the past several years. The Thai share was 1.1% in 2003 and rose to only 1.2% in 2009. This reflected no active investment of Thai industries, with only 1.5% average growth since 2003, the lowest in the region
(Source: Bangkok Post, Thai exports likely to be shaken by Japan quake, 16/03/2011, Phusadee Arunmas, link)
shaken - upset, negatively affected or influenced (play on words: "quake" shakes the ground and Thai exports are "shaken")
disaster - something very bad that happens and causes a lot of damage or kills a lot of people ความหายนะ ภัยพิบัติ
projection - a calculation or guess about the future based on information that you have การคาดคะเน
actual - real; existing in fact จริง
impact - an effect or influence ผลกระทบ
destination - the place where someone or something is going จุดหมายปลายทาง
X takes into account Y - X uses information Y to reach its conclusions
global - world เกี่ยวกับโลก
X accounted for Y% of Z - X is Y% of group Z
nuclear reactors - a plant that uses nuclear reactions to produce heat, to make steam which can be used to generate electricity (See Wikipedia)
cosmetics - things such as lipstick and mascara that women (and ladyboys) put on their face to look more beautiful เครื่องสำอางค์ (See Wikipedia)
delay - waiting longer than expected for something to happen, or the time that you have to wait การเลื่อนการเสียเวลา
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
subsidiaries - companies which are owned by a larger company บริษัทสาขา
parent companies - the larger company that owns smaller companies (subsidiaries)
officer - a high level person in an organisation with special responsibilities (a government officer, a police officer, an army officer)
chief operating officer - the highest level manager in a company
trading partners - other countries that a country exports goods to and imports goods from
indicated - show or tell people something
demand - the need and desire to buy goods and services by households and businesses
insufficient - not sufficient, not enough ไม่พอ
energy - a form of power such as electricity, heat, or light that is used for making things work
energy supply - electricity to make things work and natural gas for heating and cooking
stocks - large amounts stored for future use
food stocks - large amount of food stored for eating in the future
sufficient - enough พอเพียง
distribution - giving or delivering things to many people การจำหน่ายออกไป
place orders - ask a company to sell you goods in the future
fulfil requests - actually do what people asked you to do in the past
cooperation - working together towards a goal, working together to achieve a result that will benefit all sides ความร่วมมือ, การทำงานร่วมกัน
meeting - when a group of people come together to discuss issues and make decisions การประชุม
executives - a high level manager in a company (making plans and ensuring they executed successfully) ผู้บริหาร
current - of the present time ปัจจุบัน
ports - places where boats and ships and can park and stay, offloading the goods they have sent from other places
stuck at ports - cannot leave or get out of ports
logistics - the activity of transporting, storing in warehouses, and tracking goods (being sent from one place to another) (See Wikipedia) การขนส่งและจัดจำหน่ายสินค้า
power - energy in the form of electricity produced in large quantities and used to operate lights, machines, and heating
power shutdowns - when there is no power and electricity, the electricity supply has been turned off
resume - to begin again after stopping for a period of time ดำเนินต่อไปใหม่, กลับมาอีกครั้ง
initial - happening at the beginning, early; first ในเบื้องต้น
assessment - the process of making a judgment or forming an opinion, after considering something or someone carefully การประเมิณสถานการณ์
chilled - kept cold; lower temperature to make cold, but not to the point of freezing
warehouse - a large building for storing things โกดังสินค้า, คลังสินค้า, โรงพัสดุ
immediately - happening right after something else with no delay; right away ทันที
distribute - to give something to a group of people such as food, clothes or money แจกจ่าย
victims - people who are killed injured or harmed in some way from an accident, natural disaster, crime, etc.
refill the stocks - add new goods to the stocks or inventory (after running out)
free of charge - free, no price or "charge"
frozen - when water turns to ice, when something stops moving
frozen food - food packaged and frozen so it can remain on store shelves for a long time (See Wikipedia)
target - the amount you are planning to achieve เป้าหมาย
cautious - careful to avoid danger ระมัดระวังไม่ให้เกิดขึ้น
maintain - to keep, keep in good condition รักษา
standards - an acceptable level of quality or achievement มาตรฐาน
asparagus - a long green vegetable boiled and eaten (See Wikipedia)
okra - a popular vegetable with seed pods that can be cooked in various ways, "the products of the plant are mucilaginous, resulting in the characteristic "goo" or slime when the seed pods are cooked; the mucilage contains a usable form of soluble fiber. While many people enjoy okra cooked this way, others prefer to minimize sliminess; keeping the pods intact and cooking quickly help to achieve this. To avoid sliminess, okra pods are often briefly stir-fried, or cooked with acidic ingredients such as citrus, tomatoes, or vinegar. A few drops of lemon juice will usually suffice. Alternatively the pods can be sliced thinly and cooked for a long time, so that the mucilage dissolves, as in gumbo. The cooked leaves can also be used as a powerful soup thickener. The immature pods may also be pickled." (See Wikipedia)
position - product positioning (positioning in the mind of customers), making it clear what your product is for and the benefits and features it has compared to other products (See Wikipedia and Google Images)
market share - the percentage of customers in a market that a company has
barely - almost not happening แทบไม่เคยเกิดขึ้น
reflect - show
active investment - put money into companies to create and expand new businesses (not just replacing old machines and facilities)