The economy looks promising in the second half of 2024 for TCP Group, the manufacturer and distributor of Krating Daeng (Red Bull), if the government can restore investor and consumer confidence.
As the tourism sector continues to recover, local non-alcoholic beverages should be able to maintain their momentum, said Saravoot Yoovidhya, chief executive of TCP Group.
Regarding the government's planned 10,000-baht digital handout, he said it would likely improve the economy in the short term.
However, Mr Saravoot said the government should consider a long-term strategy to increase the country's competitiveness.
"If people have more money in their pockets, it will have a positive effect on our company," he said.
"The country must restore foreign investor confidence by painting a clear picture of the nation's plans and its direction."
The local energy drink market is expected to grow, attributed to the economic recovery and an increase in employment.
"The company expects energy drink sales to grow by 10% this year," said Mr Saravoot.
He said the challenges in the second half of the year include geopolitical conflicts, which have adversely affected the global economy, and the current flooding in northern Thailand denting sales to its trading partners in the region.
As climate change exacerbates floods and droughts in the country, sustainable water management is a challenge, said Mr Saravoot.
Thailand is experiencing alternating periods of flood and drought, and the situation is worsening, he said.
"The water problem could have a significant impact on the economy as water is vital to the agricultural sector, which could lead to further labour issues," said Mr Saravoot.
He said water resources are the foundation of economic activities and proposed the private sector prioritise water resilience, security and sustainability.
The TCP Group is committed to sustainable water management and aims to reduce water consumption in production processes, ensuring a net positive impact on water resources by returning more water to nature and communities than the company uses by 2030, said Mr Saravoot.
He said the company already achieved this goal.
"The company is considering applying this plan to foreign manufacturing plants, including in Vietnam and China," said Mr Saravoot.
As the public learns more about sustainability issues, the private sector should take immediate action or it risks facing dire consequences with climate change, he said.
To integrate sustainability into operations, companies need to evaluate their workflow and processes to identify which areas they can adapt to sustainability goals, said Mr Saravoot.
He recommended companies draw up realistic action plans and form responsible teams to drive them towards achieving their sustainability goals.
"Achieving sustainability goals is a long-term game. Companies should allocate resources, implement action plans and collaborate with partners from both the public and private sectors," said Mr Saravoot.
