Bangkok, The National Economic and Social Development Board (NESDB) revealed that Thai export figures for the first 6 months of 2024 were considered to have passed the test under the continuous international political conflicts that may intensify, and faced with the economic storms of China and the United States that remained at low levels, with low global production resulting in an impact on the Thai economy. However, there are concerns that many factors will have a significant impact on the second half of the year. It is confident that export figures for the whole year will be positive by 1-2 percent or have a value of more than 10 trillion baht. It called on the government to revise the law to collect taxes on online businesses after the Chinese platform “Temu” invaded Thailand.
Dr. Chaichan Charoensuk, Chairman of the Thai National Shippers’ Council (TNSC), said about the international trade situation of Thailand in June 2024 compared to the same month of the previous year, it was found that exports wer
e worth 24,796.6 million, contracting by 0.3 percent, and were worth 892,796 million baht, expanding by 5 percent (after excluding gold, oil, and weapons, exports in June contracted by 1.6 percent). Meanwhile, imports were worth 24,5785 million US dollars, expanding by 0.3 percent, and were worth 895,256 million baht, expanding by 5.6 percent. As a result, Thailand’s trade balance in June 2024 was worth 218 million US dollars and had a deficit in baht of -2,489 million baht.
This resulted in the overall picture of Thailand’s international trade in January – June 2024 compared to the same period of the previous year. It was found that Thailand exported a total value of 145,290 million US dollars, expanding by 2 percent, and had a value in baht of 5,191,014 million baht, expanding by 7.4 percent (after excluding gold, oil, and weapons, exports in January – June expanded by
3.1 percent). Meanwhile, imports were valued at 150,532.6 million US dollars, expanding by 3 percent, and had a value in baht of 5,437,480
million baht, expanding by 8.3 percent. As a result, Thailand’s trade balance in January – June 2024 was in deficit of 5.242.7 million US dollars, or a deficit in baht of 246,466 million baht.
However, the NESDB still forecasts that exports in 2024 will grow by 1-2 percent, or be worth 280,000-290,000 million US dollars, or more than 10 trillion baht (as of August 2024). The important risk factors to watch out for in the second half of the year are: 1. Prolonged geopolitical issues and the US-China trade war, which will affect global trade and the economy as a whole, especially the results of the US presidential election in November, in which both candidates have different campaign policies and may affect trade and environmental measures. 2. The problem of US labor unions nationwide that have not yet reached an agreement, may cause conflicts, production halts and affect imports of goods in the manufacturing sector from other countries, including Thailand. 3. Shipping costs and surcharges remain high, but the
re are signs of a decrease in many routes as China’s exports to the US have begun to grow at a slower rate due to the tariff measures that took effect on August 1. However, the situation in the Red Sea remains a major risk factor and influences the shipping routes to the Middle East and Europe. 4. The problem of oversupply of goods from China that are released to the world market, resulting in low-cost goods being dumped into the Thai market, in other words, including taking away market share of Thai products in foreign markets, and 5. Access to credit for the manufacturing sector is a continuous problem, resulting in a lack of liquidity in operations.
The NESDB has important recommendations, including: 1. Accelerate adjustments to Thailand’s export promotion projects to support competition and sustainable growth in the long term, with a focus on Thailand becoming a Trading Nation. 2. Accelerate promotion of sales promotion activities abroad, especially in new markets, to enhance the image and create opportu
nities for Thai products in the eyes of trading partners and consumers abroad. 3. Exporters must plan their transportation by booking freight in advance, including negotiating with trading partners to adjust freight rates to be in line with the increasing freight rates in the market on all routes, including managing product stocks appropriately. 4. The government must supervise products and foreign investors’ investment, which must benefit domestic supply chains, including supervising low-cost products that flood into the country, which affects domestic producers, especially SMEs, and reduces employment. 5. Support and promote small and medium-sized enterprises (SMEs) to have access to sufficient sources of funds for cash flow and production for export.
In addition, the TNSC has a clear position on the Land Bridge project, a mega project of the Thai government. It is not suitable for the overall economic development of the country, even though it has a huge investment and provides transportation facilities.
Therefore, the TNSC does not obstruct this project, but sees it as not worth the investment. If it is changed to a comprehensive development of the southern economy instead of the Land Bridge project, it would be more appropriate.
At the same time, there is concern about the Chinese ‘Temu’ platform that has entered the online market in Thailand. If the government does not accelerate the prevention measures, it may cause products and industries produced by Thai SMEs to have difficulty competing. This can be clearly seen in 3 groups of Thai products: automotive parts, electrical appliances, and Thai textiles, etc.
However, I would like the government to come and look at it and make sure that there is equal competition, especially the collection of taxes on imported goods sold in the country must not be different from the taxes collected in the country. Also, the law must be amended to support the new free trade zone area because originally these areas were exempted from taxation, but now online trading has oc
curred a lot. Therefore, I would like the government to amend the laws and regulations for the new free trade zone to create equal competition in the online business.
Source: Thai News Agency