Thai Exports in January 2022 Expanded by 8% While Seeking New Markets
March, 9 2022
Mr. Jurin Laksanawisit, Deputy Prime Minister and Minister of Commerce, revealed that Thailand's exports in January 2022 reached $21.258 billion, marking an 8% growth compared to January 2021, which only saw a 0.1% expansion.
Meanwhile, imports totaled $23.785 billion, an increase of 20.5%, primarily due to rising raw material imports for production and higher oil prices. As a result, Thailand recorded a trade deficit of $2.526 billion.
The 8% export growth in January was driven by:
- Close collaboration between the Ministry of Commerce and the private sector.
- Global manufacturing continued expanding, as indicated by the Global Manufacturing PMI (Purchasing Managers' Index), which remained above 50 for the 19th consecutive month, reflecting continued economic recovery.
- The container shortage situation improved, particularly at Laem Chabang Port and Bangkok Port, as the U.S. and private sector extended working hours, allowing smoother cargo movement and reducing backlogs.
- Thailand maintained its 2022 export growth target at 3-4%.
Top 10 Export Markets in January 2022
- India → +31.9%
- Russia → +31.9%
- United Kingdom → +29.7%
- South Korea → +26.8%
- United States → +24.1%
- Canada → +13.6%
- ASEAN-5 → +13.2%
- China → +6.8%
- Latin America → +5.0%
- European Union → +1.4%
(Note: The detailed breakdown of exported goods was delayed due to the Thai Customs Department’s 5-year tariff classification update.)
Impact of the Russia-Ukraine Conflict on Thai Exports
The Ministry of Commerce held a joint meeting with the private sector, including:
- Thai Chamber of Commerce,
- Federation of Thai Industries,
- Thai National Shippers' Council,
- Thai Bankers’ Association, and
- SME Confederation of Thailand.
The meeting concluded that:
- The direct impact on Thai exports is minimal because:
- Russia accounts for only 0.38% of Thailand's exports.
- Ukraine accounts for just 0.04%.
- Indirect impacts could include:
- Rising energy prices.
- Higher steel import costs, affecting industries like canned food and construction.
- Disruptions to grain imports, especially wheat and corn, which are crucial for animal feed.
Government’s Mitigation Plans
To mitigate risks, the Ministry of Commerce is:
- Exploring alternative markets, such as the Middle East, Africa, and Latin America.
- Rerouting shipments if key Russian and Ukrainian ports close.
- Negotiating with China to open railway and land routes for Thai goods to reach Central Asia and Europe via China.