Commerce/Export

Editorial staff

Thai exports in March contracted by 10.9 % to US$ 24.96 billion, caused by global demand slowdown, political tensions in several areas, debt issues and prolonged stringent financial policies.

Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office of the Commerce Ministry, said Thai exports in March amounted to US$ 24.96 billion (892.290 billion baht), down by 10.9 %, hit by global weaker demand and political tensions in several areas.

Thai exports of real sector (excluding gold, oil-related products, and weaponry) contracted by 5.6 %.

Poonpong Naiyanapakorn

He said Thailand's exports contracted due to the high base last year. However, they remained close to the average value of exports over the past 5 years amidst global economic uncertainties and low expansion. Political tensions in several areas, along with prolonged stringent financial policies, affected purchasing power, debt issues, and investment decisions in the business sector. Additionally, volatile weather conditions delayed agricultural product deliveries to the market.

Overall, Thailand's exports contracted by 0.2 % in the first quarter while exports of real sector (excluding gold, oil-related products, and weaponry) expanded by 1.3 %.

Thai exports in March 2024 decreased by 10.9 % to US$ 24.96 billion while imports increased by 5.6 % to US$ 26.12 billion resulting in a trade deficit of US 1.16.

For the first quarter of 2024, Thai exports decreased by 0.2 % to US$ 70.99 billion while imports increased by 3.8 % to US$75.47 billion, resulting in a trade deficit of US 4.47 million.

In March 2024, the ministry of commerce carried out significant activities to promote exports, including negotiations to open the Thai market in Hong Kong and strengthen trade relations.

Signing of the Economic Partnership Agreement (EPA) negotiations between Thailand and the Republic of Korea. The products expected to benefit are frozen and processed chicken meat, frozen and processed seafood, tropical fruits such as mangoes, guavas, and mangosteens, food products like flour and sauces, wood products, and chemicals. Service sectors such as transportation, warehousing, hotels, and restaurants are also expected to benefit.

Facilitating the export of Thai fruits to China, the director-general of the Commercial Office (Thai Trade Center) in Kunming held discussions with Chinese officials to prepare for the convenience of Thai fruits entering the market, starting from April. Chinese authorities confirmed their readiness to receive Thai fruits through various channels and expressed willingness to assist and coordinate in case of export-related issues or concerns.

The ministry expects that Thailand's overall export value in 2024 will continue to expand, particularly in agricultural and food products where Thailand maintains competitive advantages.

Amidst global food shortages and conflicts in some countries, the demand for food products remains high. Additionally, the gradual recovery of the global manufacturing sector positively impacts exports of electronic goods, smartphones, and electrical appliances.

The ministry is actively pushing for exports to new markets to compensate for slower recovery in traditional markets. However, there are challenges, including geopolitical issues that may affect transportation costs.

The ministry also closely monitors and assesses the situation periodically. Moreover, it will collaborate with commercial attaches in each country to find ways to reduce export barriers in the future.