Thailand electronics, electrical appliances exports slower
Owing to a drop in the supply of parts from Japan, manufacturers of electronics items and electrical appliances now expect the growth rate in exports to settle at nearly 5 percent this year, recent studies indicated.
Thailand's Electrical and Electronics Institute this week projected the industry's exports this year at around $50.7 billion to $54.4 billion, down from previous estimates of some $56.3 billion, as producers contend with low parts supplies.
The components shortage was traced to production disruptions in Japan following the powerful earthquake and tsunami, as well as the radiation fears and power outages caused by damaged nuclear power plants, in early March.
In 2010, electronics and electrical appliance exports surged ahead by 27 percent from the previous year to a total value of $53.3 billion, according to Board of Investment data.
In early April, Kasikorn Research Centre forecast exports by the industry to grow this year to around $57.3 billion to $58.6 billion, or by about 7-10 percent compared to last year's level.
The research group has previously said that recent disruptions in the supply of materials and parts from Japanese suppliers for automotive and electronics makers would only be "for a short period" and that larger shipments could be expected in the second half of this year.
Components imported from Japan by Thailand's electronics and electrical appliance makers include integrated circuits, diodes, transistors and semiconductors.
In the institute's report this week, it was noted that if the Thai electronics and electrical appliances firms "cannot either maintain their inventories or shift to other suppliers on time, the problems will inevitably affect exports." A shift to suppliers from China is being considered by Thai companies, the report indicated.
The report also aired the possibility of increases in prices of raw materials to make the said parts.
Other reports indicated possible delays in Japanese investment plans in Thailand's electronics and electrical appliance sector on expectations that the Japanese companies will have to devote their funds into the repair and rehabilitation of domestic production facilities.
Thailand's Board of Investment has approved so far this year 14 investment proposals worth around $190 million by Japanese investors in these industries.