Browse the complete Report on: Thailand Infrastructure Report Q4 2010
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Despite the sensational scale of the government’s clash with the United Front for Democracy Against Dictatorship (UDD), or the ‘Red Shirts’ as they are better-known, the Thai economy appears to have shrugged off the impact of the unrest within weeks. With the exception of those linked with the tourism sector, most industries – including the construction industry – have been largely unscathed by the April-June 2010 conflict on the face of it. Thailand’s construction sector will follow the country’s wider economy and exports, which have been growing strongly in recent months. The sector will have emerged from a two-year recession this year, after contracting by 5.35% in 2009 to THB244bn (US$7.12bn). BMI expects to see the sector grow by 1.17% in 2010 to THB253.7bn (US$7.65bn).
Recent developments include:
- Italian Thai Development, one of Thailand's biggest construction companies, has announced an optimistic outlook for 2010, expecting to return to net profit following two years of net loss.
However, BMI notes that growing political risk in the country may yet jeopardise upcoming tenders that are crucial to Italian Thai's growth strategy.
- BMI is forecasting a return to growth in the country's construction industry, but believe the risks are firmly to the downside. Heightened political tensions over recent weeks may compromise the government's ability to tender projects, as the focus may shift to resolving political unrest especially if there is any upturn in conflict
- Other construction companies in Thailand share Italian Thai Development’s confidence. CH. Karnchang, the second largest construction company in the country, has stated that it expects little fall out in terms of its ability to execute its order backlog, according to comments in the Bangkok Post. However, CH. Karnchang is buoyed by the fact that a number of the government contracts driving this confidence have already been approved by the government, and therefore work could move ahead as planned. The case is not the same for Italian Thai, which is relying on the government to award contracts. However, there are also threats to CH. Karnchang further down the line, as both it and Italian Thai may be hit by the government's ability to pay for work done, with payment delays a likely scenario.
In any case, BMI expects growth in the construction industry to trail economic growth going forward as construction makes up a slightly smaller proportion of total GDP year-on-year (y-o-y) over the forecast period. In 2005, the sector made up 3.06% of GDP, which we expect to fall to 2.62% in 2010. Post-2010, we anticipate that the government may have to rein in spending ambitions, given fiscal constraints. We therefore expect the construction sector’s growth rate to accelerate only modestly beyond 2010, breaking 2% in 2013 as the sector grows to THB291.4bn (US$9.25bn). By 2014, we expect the industry to grow by 2.12% to THB305.8bn (US$10.03bn).
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Browse All Business Monitor International Market Research Reports
at http://www.reportsandreports.com/Publishers/business-monitor-international/
Despite the sensational scale of the government’s clash with the United Front for Democracy Against Dictatorship (UDD), or the ‘Red Shirts’ as they are better-known, the Thai economy appears to have shrugged off the impact of the unrest within weeks. With the exception of those linked with the tourism sector, most industries – including the construction industry – have been largely unscathed by the April-June 2010 conflict on the face of it. Thailand’s construction sector will follow the country’s wider economy and exports, which have been growing strongly in recent months. The sector will have emerged from a two-year recession this year, after contracting by 5.35% in 2009 to THB244bn (US$7.12bn). BMI expects to see the sector grow by 1.17% in 2010 to THB253.7bn (US$7.65bn).
Recent developments include:
- Italian Thai Development, one of Thailand's biggest construction companies, has announced an optimistic outlook for 2010, expecting to return to net profit following two years of net loss.
However, BMI notes that growing political risk in the country may yet jeopardise upcoming tenders that are crucial to Italian Thai's growth strategy.
- BMI is forecasting a return to growth in the country's construction industry, but believe the risks are firmly to the downside. Heightened political tensions over recent weeks may compromise the government's ability to tender projects, as the focus may shift to resolving political unrest especially if there is any upturn in conflict
- Other construction companies in Thailand share Italian Thai Development’s confidence. CH. Karnchang, the second largest construction company in the country, has stated that it expects little fall out in terms of its ability to execute its order backlog, according to comments in the Bangkok Post. However, CH. Karnchang is buoyed by the fact that a number of the government contracts driving this confidence have already been approved by the government, and therefore work could move ahead as planned. The case is not the same for Italian Thai, which is relying on the government to award contracts. However, there are also threats to CH. Karnchang further down the line, as both it and Italian Thai may be hit by the government's ability to pay for work done, with payment delays a likely scenario.
In any case, BMI expects growth in the construction industry to trail economic growth going forward as construction makes up a slightly smaller proportion of total GDP year-on-year (y-o-y) over the forecast period. In 2005, the sector made up 3.06% of GDP, which we expect to fall to 2.62% in 2010. Post-2010, we anticipate that the government may have to rein in spending ambitions, given fiscal constraints. We therefore expect the construction sector’s growth rate to accelerate only modestly beyond 2010, breaking 2% in 2013 as the sector grows to THB291.4bn (US$9.25bn). By 2014, we expect the industry to grow by 2.12% to THB305.8bn (US$10.03bn).
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
(Due to the length of these URLs, it may be necessary to copy and paste the hyperlinks into your Internet browser's URL address field. Remove the space if one exists.)
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
