Thailand's Ministry of Commerce announced that it is targeting increased trade with China amounting to $140 billion by 2021. For this year, the Ministry is looking at a significant 12 percent increase that includes various export products
According to The Nation, China is Thailand's biggest trading partner and the Thai Commerce Ministry wants to expand the partnership through promoting processed goods and farm produce as provided by Small and Medium Enterprises (SMEs) in the Thai agriculture sector.
"Despite the ongoing US-China trade war, Thai exports to China have been growing continuously since 2018," director-general of the Department of Trade Negotiations (DTN) under the Ministry of Commerce, Auramon Supthaweethum, said.
Auramon explained that Thailand and China share a Free Trade Agreement (FTA) but many SMEs in the country are not aware of this. She noted that the Ministry will continue encouraging SMEs to learn about the benefits of an FTA with Beijing so most, if not all, will enjoy the privileges under this trade agreement.
To spur interest among Thai SMEs, the Ministry will establish a "DTN Business Plan Award 2019" to help support SMEs in search for export opportunities to China. The award will include a maximum of two persons in 15 teams that will be selected by the Ministry to join the competition.
While Thailand is optimistic about its trade with the world's second-largest economy, Auromon pointed out that the 12 percent goal for trade exchange with China may be revised in the future should the China-U.S. trade war intensify.
Meanwhile, Thailand's recent elections reportedly pushed some huge businesses to make investments outside the country. The move was attributed to political uncertainty that could lead to slower global demand for Thai produce and services.
In terms of per capita income, Thailand has recorded lower numbers compared to other Asian countries but its outbound-to-inbound investment ratio of 1.9 is higher than Malaysia, Taiwan, and South Korea. This is due to a number of Thai billionaires investing their money outside the country during or after the election as uncertainty looms for the domestic market.
Amid the global economic slowdown, Thailand is hoping that the Laem Chabang Port will pave the way for more trade opportunities. According to Nikkei Asian Review, the improvement of the country's biggest port is part of the government's economic project dubbed as the Eastern Economic Corridor.
The initiative includes infrastructure upgrades that will provide safer, faster, and more efficient operations at Laem Chabang Port. The Thai government believes that improved operations can help open trade opportunities with bigger firms that focus on manufacturing.
