Thai Exports Rise as Flood Effects Recede

Thailand’s automotive exports are rebounding from the country’s severe flooding faster than expected and will resume growth in second-quarter 2012, rather than in the second half as previously predicted.

Vuthichai Duangratana, deputy director general-Commerce Ministry Department of International Trade Promotion, says exports of vehicles and parts are forecast to grow 11% this year after falling 7.9% to $12.3 billion last year.

“Shipments of automobiles and parts have recovered faster than expected,” Vuthichai tells The Nation newspaper. “Many manufacturers who were hit by floods have restarted production, which will ensure that exports return to growth in the second quarter.”

The boost in exports is attributed to higher demand for pickup trucks and high-fuel-efficiency eco-cars in emerging markets. Shipments to Brazil rose last year by 47.5%; Vietnam, 29%; South Africa, 24.9%; and Indonesia, 20.5%.

The Federation of Thai Industries tells the newspaper production of eco-cars climbed to 100,000 units in 2011 from 60,000 in 2010 and is expected to hit 200,000 this year.

The trade-promotion department will host the fifth Thailand Auto Parts and Accessories fair April 25-28 in Bangkok, and Vuthichai says fuel-efficient vehicles and hybrids will take center stage.

“Thailand will promote eco- and hybrid cars to emphasize the country's role as the region's automobile-production hub,” he says.