Devaluation of Vietnamese dong not to affect Thailand's rice exports

The devaluation of Vietnam's dong by another 2 percent 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 neighbor now has no more rice for sale," the Bangkok Post's wesbite quoted the Thai commerce minister as saying.

The commerce ministry would keep a close watch on the situation, particularly on the Thai baht currency's value as the private sector has repeatedly expressed concern about its appreciation, she said.

The private sector is worried that the baht currency might strengthen to 30 to the U.S. dollar, a rise of 7 percent to 8 percent.

They have warned that such an appreciation would affect the country's exports in the 4th quarter of the year, she said.

However, the Thai minister is confident that the central bank, Bank of Thailand (BOT), is capable of keeping the baht value at a suitable level and that exports would grow by 20 percent this year, as targeted.

Thailand's Department of Foreign Trade director-general Manat Soiploy said Tuesday the country's rice exports in 2010 should reach nine million tons.

Dusit Nonthanakorn, chairman of the Thai Chamber of Commerce ( TCC), said it is possible that Vietnam will again devalue the dong in the near future.

"The government must keep a close watch on the situation and try to stabilize the baht value at levels in line with other regional currencies as by doing this, manufacturers' trade competitiveness will not suffer," Dusit said.

Thailand, which is the world's number one exporter of rice, is providing one third of the world's total supply.
(Source:xinhua)