Thai exports in 2023 contracted for the fourth consecutive month.

Thai exports 2023

March 2, 2023, Mr. Sinit Lertkrai, Deputy Minister of Commerce, revealed Thailand’s export figures for January 2023, with a value of 20,249.5 million US dollars, a contraction of 4.5% compared to the same month of the previous year. This is the fourth consecutive month of contraction since October 2022.

Excluding oil-related goods, gold and military equipment, which contracted by 3.0%, Thai exports contracted less than the previous month, but were still at a better level than many countries in Asia.

Many of Thailand’s export markets have returned to expansion, including the European Union, Latin America, India, Africa, and ASEAN (5), amidst the impact of the slowdown in the global economy and the volatility of the baht, while imports were valued at 24,899.1 million US dollars, expanding by 5.5%, resulting in a trade deficit of 4,649.6 million US dollars for Thailand.

Thai exports 2023, agricultural products and agro-industrial products, contracted by 2.7%.

Compared to the same period last year, it has continued to contract for 4 months.

But there are still important products that are expanding well, including:

• Rice expands 72.3%, the highest growth in 3 months
  (Expanded in the Indonesian, Bangladesh, US, Iraq and South African markets)
• Fats and oils from plants and animals expanded by 124.0%, expanding continuously for 2 months.
  (Expanding in the Indian, Myanmar, Kenya, Vietnam and Netherlands markets)
• Fresh, chilled and frozen chicken expanded by 50.0%, expanding continuously for 8 months.
  (Expanding in the Chinese, Malaysian, South Korean, Singaporean and Myanmar markets)
• Fresh fruits expanded by 2.5%, driven by fresh durian, which expanded by 53.3%, expanding continuously for 3 months.
  (Expanding in China, UAE and UK markets)

Products that Thai exports in 2023 contracted include:

• Cassava products contracted by 7.6%, continuing to contract for 2 months.
  (Shrinking in China, Japan, Malaysia, the United States, and South Korea, but expanding in Singapore, India, Australia, the Netherlands, and South Africa)
• Rubber shrinks 37.6%, shrinking continuously for 6 months
  (Shrinking in the Chinese, Malaysian, Japanese, South Korean and US markets, but expanding in the Indian and Pakistani markets)
• Canned and processed seafood shrank by 4.8%.
  (Shrinking in the US, Japan, Libya, Canada and Egypt markets, but expanding in Australia, Saudi Arabia, South Africa, Chile and the United Arab Emirates)
• Sugar shrinks by 2.3%, continuing to shrink for 2 months
  (Shrinking in the Indonesian, Chinese, Hong Kong, Myanmar, and Vietnamese markets, but expanding in the South Korean, Cambodian, Laotian, Japanese, and Taiwanese markets)

Industrial product exports contracted by 5.4%.

Compared to the same period last year, it has continued to contract for 4 months.

But there are still important products that are expanding well, including:

• Automobiles, equipment and components expanded by 9.2%, expanding again.
  (Expanded in the Japanese, Philippine, Indonesian, South African and Vietnamese markets)
• Semiconductors, transistors and diodes grew by 72.3%, expanding for 7 consecutive months.
  (Expanded in the US, Vietnam, India, China and Jordan markets)
• Motorcycles and parts expanded by 16.4%, expanding continuously for 6 months.
  (Expanded in the markets of Japan, Belgium, the United States, China and the Netherlands)

Products that Thai exports in 2023 contracted include:

• Computers, equipment and components contracted by 21.2%, a four-month contraction.
  (Shrinking in the US, China, Netherlands, Hong Kong and Japan markets, but expanding in Singapore, Malaysia, Mexico, India and Taiwan markets)
• Rubber products contracted by 8.2%, continuing to contract for 2 months.
  (Shrinking in the US, Japan, Australia, Vietnam and Indonesia markets, but expanding in China, Malaysia, South Korea, the Netherlands and Saudi Arabia)

Gems and jewelry (excluding gold) contracted by 3.8%, continuing to contract for 2 months.
(Shrinking in Hong Kong, Germany, India, UK and Australia, but expanding in the US, Italy, Belgium, UAE and Japan)

However, the Ministry of Commerce has taken proactive and in-depth actions to promote and facilitate exports. Important operations in the past months to promote exports include:

– Suppression of smuggling of palm oil by land, which can still be imported by ship and sent abroad only at some checkpoints, to reduce the problem of low domestic palm oil prices due to illegal smuggling, resulting in reduced smuggling and better palm prices.

– Reviving the Thai-EU free trade negotiations with the goal of reducing tariffs between the two countries to 0%, with both parties agreeing to accelerate the approval of the negotiation process and procedures as soon as possible after the negotiations have been suspended since 2014, which will allow Thailand to export more goods to the 27-nation European Union and gain more advantages compared to other competitors.

– Supporting local products to the world market, focusing on strengthening the grassroots economy, setting goals to promote local products under the Local + (Local Plus) approach, in 3 product groups: BCG group, Identity product group, and Innovative product group.

It will help in providing knowledge on production, product development and pushing it into the market both domestically and internationally to increase marketing channels for product manufacturers and generate income for the country.

Mr. Chaichan Charoensuk, President of the Thai National Shippers’ Council (TNSC) or the Exporters’ Council, revealed that Thailand’s exports in January contracted as a result of importing countries having inventories since the end of 2022.

In many product groups such as textiles, however, it is believed that Thai exports will return to positive growth in the second quarter, as seen from the expansion of food products, the problem of chip shortages has decreased, containers, and phase values are at levels before the impact of COVID.

---

Source of information: Prachachat Business

Contact us for BTL service inquiries

02-681-2005 to 9

www.bkkterminal.com

m.me/BangkokTerminalLogistics