Thailand: Border volume falls in February on strong baht

• Mar 27, 2019

Thailand’s border trade fell in February, attributed to a strong baht and higher competition from Chinese goods. 
The Commerce Ministry’s Foreign Trade Department on Tuesday reported overall cross-border trade, including transit trade, shrank by 2.47% year-on-year in February to 83.8 billion baht. 
Transit trade consists of businesses connected with the passage of goods through more than one country. 
Exports from Thailand tallied 48.4 billion baht, down 3.77% from February 2018. Imports contracted by 0.63% to 35.3 billion baht, resulting in a trade surplus of 13.1 billion. 
Adul Chotinisakorn, director-general of the department, said a strong baht and weakening currencies in neighbouring countries, especially Myanmar, impaired performance in February. More Chinese products were also imported by Asean countries. 
In the first two months this year, Thailand’s border and transit trade value still managed to edge up by 0.92% from the same period last year to 219.5 billion baht. 
Exports from Thailand made up for 121 billion baht, down by 1.94% from the same period last year, while imports grew 4.69% to 98.2 billion baht, resulting in a surplus of 23.1 billion. 
Thailand’s border trade with all four neighbours contracted 1.65% for the first two months to 179 billion baht, with exports making up 101 billion, down 3.63%, and imports worth 77.5 billion, down 1.06%. 
Malaysia remained the biggest partner for border trade, with two-way border trade amounting to 88.7 billion baht, followed by Laos at 31.7 billion, Myanmar at 31.2 billion and Cambodia at 27.3 billion. 
The department said transit trade with Singapore, Vietnam and southern China remained healthy for the first two months, with a value totalling 40.6 billion baht, up 14.1%. Exports increased by 7.67% to 19.9 billion baht, while imports surged 21% to 20.7 billion, resulting in a trade deficit of 715.8 million baht. 
Transit trade to southern China fetched the highest value at 16.8 billion baht, followed by Vietnam at 12.9 billion and Singapore at 10.9 billion. 
Mr Adul said the department remains upbeat on border trade growth, driven partially by the improved trade process in neighbouring countries, including Laos, which recently introduced trade and investment measures by increasing import licences for construction materials such as steel and cement to rehabilitate its southern provinces that were ravaged by huge floods last year. 

Source: https://www.bangkokpost.com/business/news/1651632/border-volume-falls-in-february-on-strong-baht