From January to July Thailand's machinery exports reached 140 billion baht

From January to July 2010, Thailand’s machinery and parts exports showed a good trend, with the total value of exports increasing by 49.4% year-on-year. However, due to the relatively high base of comparison in the second half of 2009, coupled with the uncertain economic recovery in the United States, the debt crisis in some European countries, China’s tightening of macroeconomic controls, and the prevention of a bubble in the domestic economy, the world’s economic outlook has become a cause for concern. With regard to cost fluctuations and other risk factors in the machinery manufacturing industry itself, Thailand's machinery and parts exports are expected to slow down in the second half of the year.

The Taihua Farmers Research Center expects that Thailand’s machinery and parts exports will grow by 53.5% in the first half of the year, and still have the opportunity to increase by 10.0% to 12.0% year-on-year in the second half of the year. The total export value will reach approximately 4.250 to 4.50 billion US dollars in the year. (a total of 135 billion to 142.8 billion baht), from a 21.5% contraction in 2009 to an increase of 28.0% to 35.0%.

Support factors for the growth of Thailand’s machinery and parts exports include the recovery of the world economy and the growth in demand for machinery in emerging economies such as ASEAN member countries that border Thailand, namely Vietnam, Laos, Cambodia and Myanmar. With the start of government and private-sector investment projects, the demand for construction machinery in these markets has increased, while the demand for agricultural machinery, food processing and food processing industries has increased. Therefore, Thailand's metal processing machinery and tool manufacturers, as well as SMEs with low technological content, but with particular attention to the production process and the quality, adjustment, and modification of the raw materials, have little business opportunities. In addition, foreign companies such as China and Japan investing in or expanding production of construction machinery, agricultural machinery, and food machinery in Thailand to supply the ASEAN market are also supporting factors for the growth of Thailand’s machinery and component exports.

The Taihua Peasant Research Center believes that the government should adopt various measures such as adjusting taxation, relaxing the safety and age limits of imports of used machinery from abroad, and striving to improve the international reputation of the Thai machinery manufacturing industry to support the machinery and parts manufacturing industry. It is the development of SMEs. At the same time, we must strengthen research and development to ensure the long-term development and improvement of the Thai machinery manufacturing industry. Machinery manufacturing companies should adjust manufacturing technology, improve the technical content, product quality and after-sales service quality to build a Thai machinery brand. In addition, machinery manufacturers need to increase their flexibility in production volume and mechanical operation functions in order to target domestic and foreign market target groups, including opening up foreign sales markets and increasing sales to Thai businesses investing abroad.