Thai exports drop 10.9% in March

In March 2024, Thailand’s exports amounted to 24,960.6 million USD (approximately 892,290 million Baht), contracting by 10.9 percent compared to the previous year.

The decrease in exports was due to global economic volatility, geopolitical tensions, and the impact of strict financial policies on purchasing power and investment decisions.

Several trading partners experienced a decrease in exports, including China (9.7%), Japan (19.3%), ASEAN (26.1%), South Asia (6.1%), the Middle East (7.3%), Africa (11.9%), Latin America (10.2%), Russia and the Commonwealth of Independent States (14.2%), and the United Kingdom (19.3%).

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• Export Products:
  • Agricultural and Agro-Industrial Products: These exports decreased by 5.1 percent year on year (YoY). While agricultural products increased slightly by 0.1 percent, agro-industrial products declined by 9.9 percent. Notable expansions included rice (+30.6%), rubber (+36.9%), canned and processed seafood (+1.5%), pet foods (+29.6%), canned and processed fruits (+20.0%), sauces and preparations (+9.6%), and milk and dairy products (+19.1%). However, some products experienced decreases, such as cassava products (-16.7%), sugar (-45.6%), fresh, chilled, frozen, and dried fruits (-38.7%), and animal and vegetable fats and oils (-50.2%).
  • Industrial Products: These exports decreased by 12.3 percent YoY. While electrical transformers and components expanded by 4.0 percent, other products faced declines, including automobiles, equipment, and parts (-12.4%), oil-related products (-10.5%), computers, equipment, and parts (-11.8%), air conditioners and components (-12.7%), and semiconductors, transistors, and diodes (-16.1%).
• Export Markets:
  • Primary Markets:
    • Exports to China, Japan, the European Union (EU-27), and ASEAN (5) decreased by 9.7%, 19.3%, 0.1%, and 26.1%, respectively.
    • Exports to the United States and CLMV (Cambodia, Laos, Myanmar, and Vietnam) increased by 2.5% and 0.5%.
  • Secondary Markets:
    • Exports to South Asia, the Middle East, Africa, Latin America, Russia and CIS, and the United Kingdom decreased by 6.1%, 7.3%, 11.9%, 10.2%, 14.2%, and 19.3%, respectively.
    • Exports to Australia and Oceania increased by 13.5%¹.

Despite the contraction, Thailand’s exports remained close to the average value of exports over the past five years amid global economic uncertainties. Factors such as political tensions, stringent financial policies, and volatile weather conditions influenced purchasing power, debt issues, and investment decisions in the business sector. Additionally, imports increased by 5.6 percent, resulting in a trade deficit of 1,163.3 million USD for March 2024.

In March 2024, the Ministry of Commerce conducted significant activities to boost exports. This included negotiations to open the Thai market in Hong Kong and strengthen trade relations. Ministry executives from both countries discussed strategies to enhance cooperation in promoting Thai SMEs and exchanging product and service information for market expansion in Hong Kong. They also invited potential Hong Kong entrepreneurs to expand their businesses in the ASEAN region, using Thailand as a trade and investment hub. Additionally, they sought increased support from Hong Kong to promote Thailand’s soft power, particularly in Thai food, fruits, jasmine rice, and Thai service businesses such as hospitals, hotels, and elderly care services.

Thailand and the Republic of Korea began negotiations for a bilateral free trade agreement (FTA) with the signing of the Economic Partnership Agreement (EPA). The agreement is expected to benefit products such as frozen and processed chicken meat, seafood, tropical fruits, flour, sauces, wood products, and chemicals. Service sectors including transportation, warehousing, hotels, and restaurants are also expected to benefit from the agreement.

(3) 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