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The Appreciation Of The Thai Baht Will Aggravate The Plight Of The Footwear Industry.

2010/9/19 17:25:00 151

After the pressure from the domestic political situation,

Thai Baht

The exchange rate gradually appreciated against the US dollar. In September 13th, it was close to US $1 to 30.70 baht, reaching its highest level in 13 years.

The recent trend of rapid appreciation of the Thai baht and the continued strong trend in the next 6-12 months are due to the current account surplus in Thailand and the large influx of foreign capital into Thailand's capital market.

The Thai Farmers' Research Center expects that the baht will rise to 1 US dollars to 30.20 baht by the end of 2010.

All parties concerned about the trend of the Thai baht appreciation will have an impact on Thailand's exports.

The Thai Farmers' Research Center believes that the impact of the baht strengthening on various industries must take account of other factors at the same time, because the market conditions of various commodities are different, such as dependence on exports, dependence on imports, dependence on the US and EU markets (the US dollar and the euro depreciate sharply against the Thai baht), the degree of competition in the export market, the relationship between supply and demand, and the opponent of the international market.

Thailand's main competitors in the international market, such as Vietnam, China and India, are all depreciating relative to the Thai baht.

It is noteworthy that most of the industries affected by the appreciation of the Thai baht are labor-intensive industries, such as clothing, which are inferior to Thailand's competitors.

textile

Shoes,

Leatherwear

And furniture.

The difficulties faced by these industries are exacerbated by the strong baht.

In addition, the agricultural products and food industry dominated by domestic raw materials is also affected by the appreciation of the Thai baht, but its influence has weakened due to the tight supply of some commodities.

The Thai Farmers' Research Center suggests that in the short run of the baht, enterprises should take precautions against the risks of exchange rate and commodity price in the short term, such as choosing commercial pactions to adapt to currencies and developing new markets to allocate risks. In the medium to long term, enterprises should pay attention to improving product quality and increasing the added value of products so as to avoid price competition.

In terms of government policy, in addition to maintaining a consistent trend between the baht and regional currencies, the government can consider providing more assistance to business operators to reduce costs, speed up infrastructure construction and import capital goods, thereby reducing trade deficits and postponing the appreciation of the Thai baht.