USEFUL ARTICLES

July Cross-Border and Transit Trade Exports Surpass 90.1 Billion THB, Growing by 41.70%

September, 4 2021

The highest growth was recorded in exports to China, which surged by 126.44%, driven mainly by fresh and dried fruits, which grew by 348%, with a total value of 15 billion THB.

Overall Export Figures

Deputy Prime Minister and Minister of Commerce Jurin Laksanawisit, along with key officials from the Ministry of Commerce, announced that:

• Total cross-border and transit trade exports in July 2021 amounted to 90.1 billion THB, a 41.70% increase compared to the same period last year.
• For the first seven months of 2021 (January–July), total exports from cross-border and transit trade reached 591.05 billion THB, marking a 37.88% increase.
• Cross-border trade (four countries: Malaysia, Myanmar, Laos, Cambodia) recorded 40.42 billion THB, growing 10.55%.
• Transit trade (three countries: China, Vietnam, Singapore) totaled 49.69 billion THB, increasing by 83.84%.

Country-Specific Export Growth in July 2021

• Malaysia: +17.95%
• Myanmar: +10.65%
• Laos: +8.08%
• Cambodia: +5.12%
• China: +126.64%
• Vietnam: +1.63%
• Singapore: +59.85%

Key Factors Contributing to Export Growth

1. Proactive Trade Facilitation

   • Close collaboration between the Ministry of Commerce and private sector under the Joint Public-Private Committee on Commerce (กรอ.พาณิชย์).
   • Border reopening efforts: Out of 97 border checkpoints, 44 have reopened after temporary closures due to COVID-19.

2. Immediate Issue Resolution with the Private Sector

   • Active engagement in border and transit trade problem-solving, particularly at key border checkpoints like Youyi Guan (China), where exports of durian and mangosteen were successfully facilitated.
   • Negotiations with China by trade and agricultural envoys ensured continued imports of Thai durian and longan, despite concerns over COVID-19 contamination.

3. SME Export Support Initiatives

   • The Ministry of Commerce introduced the "SME Export Loan Matching" project to provide financial aid to SME exporters.
   • On August 26, EXIM Bank approved 618 million THB in special loans for 151 SME exporters, ensuring liquidity for cross-border trade expansion.

4. Recovery of Trading Partner Economies

   • Increased demand for certain pandemic-related goods, such as work-from-home products.

5. Depreciation of the Thai Baht

   • The baht weakened by an average of 10%, making Thai exports more competitive in neighboring markets and China.

Challenges and Negative Impacts

• Malaysia tightened border import restrictions, affecting Thai exports of latex and subsequently impacting domestic latex prices.
• Despite previous price improvements (from 15 THB to 24 THB per kg), stricter border control measures in Malaysia continue to challenge the rubber industry.

Upcoming Border Reopenings

The Director-General of the Department of Foreign Trade is coordinating with private sector representatives and provincial authorities to reopen key border checkpoints in five provinces along the Thai-Lao border:

• Chiang Rai
• Loei
• Nong Khai
• Nakhon Phanom
• Mukdahan

Additionally, Pak Saeng and Natan checkpoints (Ubon Ratchathani) are under review and may be among the first to reopen. Similar models will be applied to Tak Bai and Buketa checkpoints in Narathiwat.

Export Growth Beyond Expectations

The initial export target for 2021 was set at +3.6% growth, but as of July, the actual increase already reached +37.88%, far exceeding expectations.