Bangkok (VNA) – The Thai National Shippers' Council (TNSC) has identified six critical weaknesses in Thailand's economic system, warning that these vulnerabilities may exert pressure on the country's exports amid escalating global trade tensions.
Thailand is among exporting countries affected by the global trade tension, which is expected to intensify further after US President Donald Trump announced to raise import tariffs by 25% on goods from Canada and Mexico, and 20% on Chinese goods.
Despite a 13.6% year-on-year expansion in Thai exports in January, the country faced a 75.74 billion THB (1.88 billion USD) in trade deficit, showing that Thailand has issues in its economic structure.
The export sector is facing risks and volatility amidst Trump 2.0 trade tension, which is like a time bomb waiting to explode, said TNSC Chairman Chaichan Charoensuk. He pointed out six key vulnerabilities in the country's economic system that could exacerbate the situation.
First, reliance on low local content in its exports may leave the country vulnerable to trade deficits, particularly if the US imposes tariffs that impact Thai businesses.
Second, with the US raising import tariffs on Chinese products, a surge of Chinese goods entering ASEAN markets, including Thailand, could intensify competition, posing a serious threat to Thai SMEs and potentially widening the trade gap with China.
Additionally, limited access to loans is hindering entrepreneurs from maintaining liquidity and expanding their businesses in response to evolving global economic trends.
Thailand's manufacturing sector also struggles with outdated production methods, as it remains heavily dependent on original equipment manufacturing (OEM) models, lacking sufficient investment in research, development, and brand creation.
The country’s shortage of skilled labour in technology and innovation further weakens its competitiveness. With minimal motivation among workers to acquire digital skills, Thailand risks falling behind in the digital transformation race, deterring foreign investment.
Lastly, despite strategic initiatives such as Thailand 4.0, the Bio-Circular-Green (BCG) economy model, and the Eastern Economic Corridor (EEC), the country still lacks a unified policy framework to steer its manufacturing sector forward effectively.
These weaknesses slowed down Thai manufacturing and economy in the Trump 2.0 era, Chaichan said, adding that Thailand should tackle these issues to prevent risk in economic growth./.
