Industry Minister Suriya Jungrungreangkit believes the Thai industrial sector has rebounded as the manufacturing production index (MPI) in July increased for the third consecutive month by 3.12% from June to 85.4 points.
Domestic industry, which was hit hard during the enforcement of lockdown measures earlier this year, is returning to normal and this trend will continue if Thailand does not encounter a second outbreak of the coronavirus, he said yesterday.
After a decrease from 103.6 in March to 78 in April, MPI has gradually increased as viral transmissions were subdued and businesses allowed to reopen.
The July MPI is lower than 100.1 recorded in July 2019, but is a month-on-month gain from June, said Mr Suriya.
In June the index contracted 17.8% year-on-year, but the contraction was lower in July, standing at 14.6%.
The Office of Industrial Economics (OIE) reported capacity utilisation increased to 56% in July for the third consecutive month, from 55% in June.
With an economic swoon caused by the pandemic, the US-China trade war and flooding in China, many manufacturers are considering relocating their production bases to diversify risks.
"This will be a chance for Thailand as we have skilled labourers and have successfully controlled the pandemic's spread," Mr Suriya said.
OIE chief Thongchai Chawalitpichaet listed some key industries that are recovering and have expanded in July. The automotive industry expanded 24.5% from June, with domestic sales gaining 2.3%, after all car makers resumed production.
Food businesses excluding sugar increased 2.7% year-on-year.