The Federation of Thai Industries (FTI) said the Thai auto industry would meet its manufacturing target of 1.24 million cars this year despite rising oil prices and the growing preference for small vehicles.

FTI spokesman for the auto industry Surapong Phaisitpattana-pong said carmakers built nearly 700,000 vehicles in the first seven months of the year, up 12.86 per cent on the same period last year. As a result, the FTI spokesman said he was confident the industry would hit its target.

Surapong said production of vehicles with engines measuring between 2,000cc and 2,500cc was down 29 per cent, while production of cars with 2,500cc to 3,000cc engines was down 30.9 per cent. He said consumers were buying more energy efficient vehicles.

Agriculture: Chinese demand for tapioca booms

SGS (Thailand) Co Ltd, a commodity surveyor, reported that Thai exporters would ship three million tonnes of tapioca chip to China this year thanks to high demand among ethanol producers.

Demand for tapioca chips is also forecast to increase in response to the Chinese government's policy of promoting alternative energy sources.

However, SGS warned that Indonesia and Vietnam have also been lowering prices for tapioca chips in a bid to increase their market shares.

East Timor: PM calls for Thai investment

East Timor prime minister Jose Ramos Horta has invited Thai businessmen to invest in his country, according to Abhisit Vejjajiva, leader of the Democrat Party.

Abhisit met Horta in Jakarta during an Asian leadership forum. Abhisit said Horta told him that East Timor has a lot of room for future infrastructure investment and he invited Thai investors to participate in new projects there, the Thai News Agency reported.

Abhisit said Thai investors are interested in entering into fishery projects in East Timor. He said Horta responded positively.

Abhisit said he believed that East Timor should become a member of Asean soon and that Thailand should look for ways to further cooperate with it, according to the TNA.

Carmaker: Honda gets into gear in Vietnam

Honda Vietnam Co Ltd, the carmaker's Vietnamese subsidiary, said yesterday it had begun automobile operations in Vietnam with the launch of a new Civic built at its plant in the suburbs of Hanoi.

The new plant has an annual production capacity of 10,000 cars.

In addition to welding, painting and assembling complete vehicles, the factory will also assemble engines, a first for an automobile plant in Vietnam.

The company expects to invest about US$60 million (Bt2.26 billion) in Vietnam between now and 2010, said Takeo Fukui, the president and CEO of Honda Motor Co Ltd.