Economics
National News Of Thailand
The Thai economy has been affected by a number of uncontrollable factors over the past few years. The trade war between the world’s economic superpowers, China and the United States (US), led to sluggish global growth, hurting Thai exports (World Bank 2016+3.4% 2017+3.8% 2018+3.6% 2019+2.9%). Thailand is one of the major exporters of information technology (IT) products, electronics and circuit boards to China. By the end of 2019, the US revoked the Generalized System of Preferences (GSP) benefits for 573 Thai products. The Thai export sector suffered more blows after the US suspended GSP benefits for 231 Thai products last year. Furthermore, Thai exporters were hit by the continuous appreciation of the Thai baht. The strong currency was attributed to Thailand’s high current account surplus and foreign reserves, backed by a strong economic foundation. Some business and industrial sectors were unable to keep pace with technological changes, slowing the transition process. Nonetheless, the government actively continues to implement measures to support the economy, starting with providing low-income earners with state welfare cards, offering crop price guarantees to help farmers and improving the liquidity of small and medium-sized enterprises (SMEs), to ensure smooth business operations. The government also helps stimulate tourist spending through its Chim Shop Chai (Taste, Shop, Spend) scheme, aimed at injecting more capital into the local economy. Although the drought situation has undermined some of these efforts, the government continues to direct its human and financial resources to help those affected in the long term. Various measures resulted in economic growth in 2019 (Thai economic growth in 2019 Q1+2.8% Q2+2.3% Q3+2.4% Q4+1.6%), but the unexpected occurrence of the COVID-19 pandemic led to a national lockdown and travel restrictions, affecting tourism, trade and investment worldwide. Adverse effects on the Thai economy cannot be avoided. The government has been working to the best of its ability to keep the situation stable and to drive the Thai economy amid the global crisis.
Business
EU’s Solar Initiatives in Southeast Asia Impacted by US-China Trade Tensions
中国拥有的太阳能公司在东南亚，尤其是泰国、越南、马来西亚和柬埔寨，正面临潜在的挑战和机遇。
Challenges for Chinese Solar Companies in Southeast Asia
Chinese-owned solar companies in Southeast Asia, especially in Thailand, Vietnam, Malaysia, and Cambodia, are encountering significant challenges. These nations are becoming crucial markets for solar energy; however, increased competition and regulatory hurdles are complicating their operations.
Regulatory Hurdles
Many Southeast Asian governments are implementing stricter regulations for foreign investments in renewable energy sectors. This development may hinder Chinese companies’ ability to navigate local laws and establish a strong foothold in these growing markets.
Market Competition
Beyond regulatory challenges, the competition among local and international solar companies is intensifying. To succeed, Chinese firms must innovate and adapt their strategies to meet regional demands while maintaining cost-effectiveness and securing partnerships with local entities.
Source : EU’s solar plans in SE Asia caught in US-China trade war
Business
Malaysia Launches ‘Luxury’ Durian Exports to China as Indonesia Eyes Market Opportunities
Malaysia has begun exporting fresh durian to China, targeting high-end consumers with 40 tonnes shipped in phases. China, the largest durian buyer, may eventually import from Indonesia pending compliance with standards.
Malaysia’s Fresh Durian Shipment to China
Malaysia has successfully sent its first shipment of fresh durians to China, aiming to capture the interest of a market largely supplied by Thailand and Vietnam. This shipment includes 40 tonnes released in three phases, as announced by Deputy Agriculture and Food Security Minister Datuk Arthur Joseph Kurup. China represents the world’s largest durian importer, having purchased 1.4 million tonnes last year, with a significant portion sourced from Thailand.
Emphasis on Quality
Malaysian exporters, having met China’s phytosanitary requirements, are focusing on the quality of their products rather than sheer volume. Lim Chin Khee from the Durian Academy states that Malaysian durians are considered luxury items, targeting high-end consumers. The first shipment of 20 tonnes has already reached the Zhengzhou Xinzheng International Airport, fetching prices that can reach 200 yuan (approximately $28) per fruit.
Indonesia’s Durian Prospects
Indonesia is also exploring opportunities in the Chinese durian market, with discussions surrounding compliance to China’s phytosanitary standards ongoing. As reported, Indonesian officials are eager to establish a protocol that could facilitate durian exports, considering the strong demand in China. Lynn Song from ING emphasizes that should these negotiations succeed, Indonesian durians could effectively carve a niche in the burgeoning market.
Source : Malaysia starts ‘luxury’ durian exports to China as Indonesia sniffs the market
Business
Vietnam’s Exports of Fruits and Vegetables to Thailand Surge by 70%
Thailand has become Vietnam’s fourth largest fruit and vegetable market, with exports rising significantly, particularly in durians, as Thailand faces supply shortages due to droughts.
Growth in Bilateral Trade
Thailand has risen to become Vietnam’s fourth-largest market for fruits and vegetables, according to recent customs data from the Vietnam Fruit and Vegetable Association. This shift from sixth place last year is largely attributed to increased demand, particularly for frozen durian. China continues to dominate as the top buyer, importing nearly $2.5 billion worth, a 25% increase.
Rising Imports and Export Dynamics
The United States and South Korea have also contributed to this growth, with imports from Vietnam surging by 31% and 51%, totaling $189 million and $188 million, respectively. Overall, Vietnam’s exports reached an estimated $4.6 billion, a 29% increase, as the country capitalizes on year-round durian cultivation.
Changing Trade Relationships
The trade landscape between Vietnam and Thailand has transformed significantly over the past decade. Thailand, once the leading supplier of fruits and vegetables to Vietnam, saw its imports drop to just $46.5 million in 2023. However, imports have surged 35% this year, reaching $32 million, with popular items including dates and mangosteens.
Source : Vietnam fruit, vegetable exports to Thailand rise by 70% – VnExpress International
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