Thai goods face challenges amid China’s reopening

A shipment container is loaded onto a truck at the Laem Chabang port in Chon Buri province, Thailand (Photo: bangkokpost)

Bangkok (VNA) - The Federation of Thai Industries (FTI) is gripped with a fresh worry over the influx of inexpensive Chinese goods following China's reopening, though Beijing's policy is good for the tourism sector.

Kriengkrai Thiennukul, chairman of the FTI, said Thailand will barely compete in the international trade arena because enterpreneurs currently cannot control production costs due to higher energy bills and wages than those in China.

He stressed that China is seeking markets for their products. The country will increase exports after its reopening in order to boost the economy.

Besides, with the global economy likely to enter a recession this year, many countries need to seek new markets for their exports.

The export of Chinese products to ASEAN countries including Thailand will affect the Thai export sector.

Meanwhile, the export sector is facing many challenges, including the impact of geopolitical conflicts, high energy costs and the fluctuation of foreign exchange rates.

The FTI said the value of the baht against the US dollar should stand at appropriate levels. If the baht gets considerably stronger, Thai exporters will bear a heavy brunt.

Suchart Chantaranakaracha, vice-chairman of the FTI, said the baht (THB)'s value should stand at 34 per US dollar, but its value has fluctuated greatly from 38.08 in October 2022 to 32.88 in February 2023.

The Joint Standing Committee on Commerce, Industry and Banking expects the export sector to grow by 1-2% in 2023. GDP growth is projected to be between 3-3.5%, with inflation standing at 2.7-3.2%.

The FTI is also worried about a drop in foreign direct investment to 15% of GDP, down from 30-35%, as this would hit growth. The government needs to find ways to increase the country's competitiveness in order to attract more foreign investors./.