Rising Imports Fuel Trade Worry in Thailand.

Byline: Wichit Sirithaveeporn

Nov. 9--Imports of luxury goods are showing alarming signs of increasing, while overall returns for the country from exports remain low due to high import content.

Utid Tamwatin, an inspector-general of the Finance Ministry, noted that imports of 17 luxury goods, including liquor, cameras, cosmetics and perfume, totalled 14.57 billion baht in the first seven months of the year.

This compares with 22.2 billion baht in imports for all of 2000, 15.4 billion for 1999 and 14 billion for 1998.

Mr Utid, speaking at a seminar yesterday on saving foreign currency and increasing the use of Thai brands, said the recession had led to a sharp drop in luxury spending, but now spending was increasing, leading policymakers to be concerned about rising imports of consumer goods.

Thailand's industrial base was also heavily weighted toward the use of imported raw materials and capital goods, Mr Utid said. Excluding the agriculture sector, exports had import content ranging from 60 percent to 95 percent.

Mr Utid said this was a danger for the economy overall, and reduced the net benefits exports had for the country.