Japan-Thailand Business Forum

Japan Thailand Business Forum is an association which consists of persons who have once worked in Thailand as executives of various Japanese companies as well as government offices located in Thailand.

It was organized in August 2002 for a purpose of exchanging frank opinions with Thai authorities in regard to tourism, economy, investment and other various subjects.

Sao Chin Cha, Bangkok

Thailand Review June 2010 (extracted)

Economy

Thailand's National Economic and Social Development Bureau (NESDB) reported on May 25th that the nation's gross domestic product (GDP) for the first quarter of 2010 grew at a rate of 12%, compared to the same period in the previous year, the highest rate in the past 15 years. Among the principle factors involved were (1) export expansion, (2) domestic consumption growth, (3) increased private sector investment and (4) increased revenues from tourism, etc. Also, it should be borne in mind that the performance of economic growth in the weeks and months ahead may be significantly affected by factors such as unrest in the domestic political situation and climatic factors such as drought, etc. The forecast for GDP growth for the whole year is being left at between 3.5% and 4.5% for the time being.

Bank of Thailand's monthly financial and economic report (issued May 31st for April) puts April's export worth at US$13.8 billion (up 34.6%, compared to the same period in the previous year, and down US$2.3 billion on the previous month), and import worth at US$14 billion (up 43.1%, similarly, and down US$1 billion, similarly). Exports recoiled downwards from the previous month's rapid upward surge, while the import figures reflect a hefty increase in crude oil imports as well as growing imports of raw materials for electrical goods. As a result, the balance of trade was left at US$200 million in the red. At the end of April, the foreign currency reserves stood at US$147.6 billion (up US$3.5 billion, compared to the same period in the previous year).

According to a June 1st announcement by Thailand's Ministry of Commerce, the consumer price index increase rate for May was up 3.5% (food and drink 4.6%, non food and drink 2.8%) compared to the same period in the previous year, marking eight consecutive months of positive growth. The core CPI increase rate (excluding perishables and energy) for May was 1.2% compared to the same period in the previous year, marking seven consecutive months of positive growth.

Politics

On May 19th, Thailand's security forces implemented a forcible expulsion of the demonstrators of the United Front of Democracy Against Dictatorship (UDD) from the Ratchaprasong area of central Bangkok. On the afternoon of that same day, UDD leaders called on the demonstrators to disband, and the rioting was brought to an end. However, some elements refused to cooperate and there were over thirty fires started in Bangkok by angry protesters, and some major commercial facilities were destroyed in the city's business and shopping districts. According to a government announcement, the forcible expulsion resulted in seven deaths and 88 people injured. Press reports suggested that some radical UDD members could well be planning terrorist activities in retaliation for the forcible expulsion, and the Thai government has decided to keep emergency measures in place for the time being.

On June 7th, Prime Minister Abhisit conducted a Cabinet reshuffle in order to strengthen his administration's authority in the wake of the antigovernment demonstrations and to heal the rifts within the coalition, and inaugurated the second Abhisit Cabinet after replacing eight ministers. With regard to the previous Cabinet, the opposition Pheu Thai (For Thais) Party launched a vote of no confidence last week against six Cabinet members, including the Prime Minister. Though the motion failed against all six ministers, there were some no confidence votes from within the coalition and some are beginning to voice concerns over rifts within the administration.