Thailand
Thailand sees $1.6B trade surplus with Asean countries, says report
The Office of Agricultural Economics (OAE) has reported that for the first quarter of this year, Thailand had a trade surplus with other Asean countries of 53.24 billion baht ($1.67 billion), an increase of 0.02 per cent.
The country’s major agricultural exports are fish, rice, fruit and rubber. Noting the increased competition from Vietnam, the office suggested that Thai increase its exports to other markets rather than become reliant on the Chinese market.
From January to March this year, Thai-Asean trade was valued at 107 billion baht, a decrease of 4.56 per cent year-on-year. Exports were valued at 80 billion baht, a decrease of 3.08 per cent year-on-year, while imports were at 26.9 billion baht, down by 8.69 per cent over last year.
Of the Asean countries, Vietnam tops out as Thailand’s number one export destination, accounting for 22 per cent, followed by Malaysia at 17 per cent, Indonesia at 16 per cent and Cambodia at 12 per cent.
In this period, Thailand had the largest trade surplus of agricultural goods, at 13.1 billion baht, followed by Malaysia at 10.1 billion baht, Indonesia at 7.69 billion baht, Cambodia at 5.89 billion baht and the Philippines at 5.56 billion baht.
In the first quarter, Thai exports of agricultural goods to the US, Japan and the EU improved, due to the weakening of the Thai baht. Meanwhile, the Kingdom’s agricultural exports to China were yet to recover due to the ongoing US-China trade war, according to the OAE.
Thailand should expand the marketing of key agricultural goods such as fruit groups to other countries, to reduce the sector’s dependence on China, said OAE deputy secretary-general Chantanon Wannakejohn. Thailand has a key advantage over its key competitor, Vietnam, regarding the cost of transport to China.
Auto, air conditioning gains
The Office of Industrial Economics (OIE) reported that last year, the Manufacturing Production Index (MPI) expanded by two per cent, pushed by gains made in the automotive and air-conditioning sector.
The index found the production of cars and engines had grown by 13.6 per cent year-on-year for both passenger cars and pick-up trucks. Domestic demand for automotive continued to be strong, while there was also increased demand from Oceania, the Middle East, Europe and US markets, said OIE deputy director-general Aditad Vasinonta.
Air-conditioning and parts grew by 15.57 per cent overall year on year as domestic demand surged during the unusually hot weather. Furthermore, producers are switching to more energy efficient inverters, which are preferred by foreign markets. As such, year on year exports of air-conditioning and parts to Europe, Japan, India and neighbouring countries grew by 13.9 per cent.
Production of concrete grew by 10.25 per cent year on year in the first quarter, especially concrete used in construction and ready-mixed concrete. This was due to the demand from the construction of government infrastructural projects such as the Bang Pa-in to Nakhon Ratchasima Intercity Motorway Project (M6) and projects in the Eastern Economic Corridor (EEC). The real estate sector also drove increased demand for concrete.
Beer production also grew by 23.14 per cent year-on-year as various breweries that were temporarily closed last year resume operation. Additionally, manufacturers have been modernising their product packaging, leading more customers to purchase their goods.
The production of non-alcoholic beverages and drinking water grew by 11.88 per cent year-on-year in the first quarter, due to increased promotional activities and new product launches by various producers. THE NATION (THAILAND)/ASIA NEWS NETWORK