Thailand
Thailand: Shippers predict robust export growth
A group of Thai shippers believe the country’s exports may grow by up to 8% next year, driven by an economic recovery in partner trading countries.
But it warned of challenges, including spread of the new Omicron variant, a labour shortage in manufacturing, relatively high freight rates, insufficient shipping space and containers, as well as congestion at Laem Chabang and Bangkok ports.
Chaichan Chareonsuk, chairman of the Thai National Shippers’ Council (TNSC), said the group expects Thai exports to grow between 5-8% next year, with 8% possible if responsible agencies tackle the challenges ahead.
The group also called on the government to maintain stable exchange rates to prevent adverse effects to the Thai economy, as well as set up a one-stop service centre for foreign worker administration to handle labour shortages in the manufacturing sector.
Mr Chaichan said the council submitted a white paper on a rehabilitation plan for the export sector once the spread of Covid-19 is controlled. The paper was sent to 40 government agencies to tackle export obstacles covering not only politics, but also economics, technology, the environment and legal factors.
The TNSC is urging the government to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in 2022, while making the best use of trade privileges under the Regional Comprehensive Economic Partnership trade pact, the world’s biggest free trade deal, which will come into force on Jan 1 next year.
The government is also being advised to move ahead with free trade pacts with the UK, Turkey, Pakistan and India, while developing Thailand’s digital economy and paperless working procedures at state agencies to reduce costs.
In a related development, the TNSC yesterday raised the export growth forecast for this year to 15%, from a predicted 13-14% last month, driven by robust results the first 10 months of the year.
The Commerce Ministry reported on Nov 22 customs-cleared exports fetched US$22.7 billion, with imports increasing by 34.6% to $23.1 billion, resulting in a trade deficit of $370 million. It was the eighth consecutive monthly increase for exports, after gains of 17.1% in September, 8.39% in August, 20.3% in July, 43.8% in June, 41.6% in May, 13.1% in April and 8.47% in March, following a 2.59% contraction in February.
Exports in the real sector (excluding gold, oil-related products and weaponry) rose by 12.2% in October, following a rise of 14.8% in September and 19.4% in August.
For the first 10 months this year, exports expanded by 15.7% to $223 billion, while imports rose by 31.3% to $221 billion, resulting in a trade surplus of $1.64 billion.
Source: https://www.bangkokpost.com/business/2228267/shippers-predict-robust-export-growth