The positive view has arisen due to confidence that domestic demand will pick up, particularly in the second half of the year as a result of the improved confidence of consumers and investors.

The petrochemical, private hospital, construction, hotel and tourism industries are expected to see higher demand.

Demand growth for instant foods, vehicles and parts, electronic appliances, petroleum, and the shipping industries is likely to be stable compared to last year's expansion.

Demand for premium condominiums could slow this year as developers try to sell out their housing stock before launching new projects.

Industries and businesses  in the  petrochemical, vehicle manufacturing and parts, and airlines, said they would implement their investment plans this year as government investment is

expected to flood in next year.

The textile industry has projected that the appreciation of the baht and a slowdown in the economies of trading partners remain risk factors for its exports. Domestic demand is forecast to recover, encouraged by consumers' confidence after a clearer political situation emerges.

"It is difficult for them to raise selling prices, both in domestic and external markets, because of fierce competition that leads to lower margins, but some companies succeeded in negotiating for price increases at the time of the baht volatility," said the survey.

They expressed concern that they would face tougher competition in the US market, if US safeguard measures - setting quotas for Chinese textiles for three years - expired. The slowdown in the US economy along with sluggish domestic demand affected Thai textiles in the last quarter.

The survey found that some textile companies are interested in investing abroad, such as in Vietnam where they receive tax privileges along with skilled labour and low wages.

Meanwhile, the animal-feed sector forecast that demand would continue to expand in line with seafood exports but they would be indirectly affected by the strong baht. However, they can raise the price of high-quality animal feed to reduce the effect from the appreciating baht, with the strong currency lowering the cost of imported goods.

Last year's demand for animal feed, especially seafood, expanded quite strongly, boosted by foreign demand for white shrimp.

Shrimp exports to European Union markets increased, mainly after the European Union's GSP (Generalised System of Preferences) scheme was reintroduced between August 2005 and the end of last year for countries affected by the devastating 2004 tsunami.

Anoma Srisukkasem

The Nation