Slowing global economic growth and a strong baht have led Silver World Co to focus on the domestic market.
The shift to local sales would be a first for the 16-year-old exporter and producer of silver jewellery, said general manager B.N. Agarwal.
Business over the past two years has been poor, due largely to the appreciating currency. Since the beginning of 2006, the baht has gained more than 16% against the US dollar, hurting profit margins for local exporters.
”Our business used to grow by 100% in 2005 but it has not been the same since,” Mr Agarwal said. He declined to offer specifics of profits and sales.
Company president Veraphong Chanaratsopon was even more pessimistic, saying the recent disruption in the global markets due to the collapse of the US sub-prime mortgage market had increased difficulties for Thai exporters.
”We are at a disadvantage now competing in global markets. Other competitors receive considerable governmnet support. Hong Kong, for example, is a free-trade zone while Vietnam is much more accommodating to foreign investors,” he said in an interview.
But Thai authorities, despite policies to develop the country as a regional jewellery production and trading hub, have been slow to offer incentives to local producers.
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