Thai Exporters: Finding New Markets to Drive Economic Growth | Thailand Export News
Thailand's exports have been declining for seven consecutive months, raising concerns about its impact on the country's gross domestic product (GDP) this year.
The export sector, one of the main engines of the Thai economy, has been experiencing negative growth for seven consecutive months (from October 2022 to April this year) due to a slowdown in the global economy and high inflation in several countries.
The decline in purchasing power led to overstocking with trading partners, which resulted in a 5.2% decline in Thai exports in the first four months of this year.
In order to reverse this trend and achieve the set goals, both the government and the private sector consider it necessary to urgently change the strategy, since the export sector accounts for almost 60% of Thailand's GDP.
Together with Chaychan Chareonsuk, chairman of the National Transportation Council of Thailand (TNSC), the Ministry of Commerce and the private sector have set a target of 1-2% export growth this year. The Ministry promotes cooperation between commercial attaches and provincial commercial offices, as well as the private sector, holding joint meetings to assess the situation in the second half of the year and adjust the work plan to promote exports and achieve the set goals. They are accelerating 350 activities targeting seven regions: ASEAN, China and Hong Kong, South Asia, East Asia and Oceania, Central and South Africa, North America, Latin America and Europe.
The key strategy includes exploring new markets, maintaining existing markets and revitalizing old markets.
Among the key strategies are accelerating the formation of sales offices to expand market potential, promoting international e-commerce, negotiating both offline and online, promoting BCG (Bio-Circular-Green) products and innovative products, developing a high-performance service business, especially digital content. , HORECA (Hotels, Restaurants, Catering), "Thai Select" Restaurants and secondary market penetration, especially in ASEAN and India.
"Negative growth of 4.5% in the first quarter is the lowest. It is expected to remain negative in the second quarter, but with a smaller contraction," Chaychan said. "We started to see orders coming towards the end of the second quarter. Thailand's exports are expected to return to positive growth in the second half of the year," Chaichan added.
At the same time, Chairman of the Federation of Thai Industries (FTI) Krienkrai Tiennakul noted that the Joint Committee on Trade, Industry and Banking (JSCCIB) estimated Thailand's exports this year in the range of -1% to 0. Previously, it was assumed that Thai exports could change in the third or fourth quarter. However, the recent announcement by the US of raising interest rates twice this year indicates that foreign markets are still not performing well, and persistently high inflation in several countries continues to weigh on purchasing power.
The need to find new markets
"To revive export growth, both the public and private sectors must work together to penetrate new markets such as Central Asia and increase trade within ASEAN," Krienkray said. “However, we must now acknowledge that the Chinese economy, which is one of the main markets in Thailand, which initially seemed promising, does not show significant improvement according to current data. Their purchasing power is still not very good. We are seeing more and more Chinese goods as their exports to the United States and Europe have declined due to trade tensions and domestic economic problems," Krienkray said.
Meanwhile, Fusit Rattanakul Sereroengrit, Director General of the Department of International Trade (DITP), said that from June to September of this year, the department carried out 87 activities to promote exports. Among them, the event "Thai pop-up store 2023" was held, which presents food, processed foods, drinks, fruits, rice, snacks, spices. They also carried out sales promotion in partnership with department stores in Egypt (in-store promotion), expanding the market for flavored bananas and flavored banana processed products in Japanese secondary markets, and encouraging gems and jewelry entrepreneurs to enter the global market through online platforms for international exhibitions, jewelry and gems.
Exploring new markets and diversifying the economy
Thailand is also looking to diversify its economy and not rely solely on exports. According to the plans, Thailand intends to develop industries such as tourism, medical tourism, digital economy, infrastructure projects and agriculture. This will help to diversify and strengthen the country's economy, reducing dependence on one sector.
In general, Thai exporters are actively seeking new markets and developing strategies to revive the economy amid concerns about China and other global economic factors. Collaboration between the government, the private sector and regional partners is becoming increasingly important in order to achieve the set goals and stimulate Thailand's economic growth.
Author of the article: Ekaterina Antonova
