Thailand not worried by Vietnam Dong devaluation

The devaluation of Vietnam’s dong by another two per cent early this week will not have any appreciable impact on Thailand’s rice exports, Commerce Minister Porntiva Nakasai said on Thursday. “Vietnam is a major competitor for rice exports, but our neighbour now has no more rice for sale,” Mrs Porntiva said. The ministry would keep a close watch on the situation, particularly on the value of baht. The private sector had repeatedly expressed concern about its appreciation, she said. The private sector was worried that the baht might strengthens to 30 to the US dollar, a rise of seven to eight per cent. Businesses warned that such an appreciation would affect the country’s exports in the fourth quarter of the year, she said. The minister was confident that the Bank of Thailand was capable of keeping the baht value at a suitable level and that exports would grow by 20 per cent this year, as targeted. Dusit Nonthanakorn, chairman of the Thai Chamber of Commerce, said there is a possibility Vietnam would again devalue the dong the near future, although this would not have much impact on Thailand’s exports. “But the government must keep a close watch on the situation and try to stabilise the baht value at levels in line with the currencies of other Asian countries. By doing this, manufacturers’ trade competitiveness will not suffer,” Mr Dusit said.