Vietnam’s exports are enjoying a larger market share than their Thai counterparts in the US, the EU and Japan, according to a recent study conducted by the University of the Thai Chamber of Commerce.
The study reports that Vietnam holds a 19 percent share of the US market, while Thailand holds 11 percent; Vietnam has a 13.6 percent share of EU markets against Thailand’s 11 percent; and in Japan it occupies a 13.9 percent market share in comparison with Thailand ’s 10 percent.
Of the major markets, Thailand only has the advantage in China with an 11 percent market share, compared to Vietnam’s 7.3 percent.
Economic experts in Thailand have forecasted that Vietnam will become Thailand ’s major export rival, particularly for low-priced goods to major markets.
Even though Thailand ’s exports have been projected to grow 10.5 percent this year to a value of 166.9 billion USD, compared to a 15.1 percent contraction to 151 billion USD last year, the devaluation of the Vietnamese currency could slow down Thailand ’s export growth.
Many industrial specialists in Thailand have warned that Thai manufacturers risk losing their competitive edge in major export markets in a potential new context. The US, Vietnam and Australia are in negotiations to join the “Trans-Pacific Strategic Economic Partnership Agreement” (TTP) with New Zealand , Chile , Singapore and Brunei . If Vietnam joins the trade zone it will enjoy preferential trade tariffs with all other member countries.
Sectors that would be the most influenced include garments, shoes, farm products, electronics and food processing.
Vice-chairman of the Thai Garment Manufacturers Association Sukij Kongpiyacharn said American importers would choose Vietnamese garment and texttile products once the TPP with Vietnam was set up and a Bilateral Free Trade Agreement was signed./.
The study reports that Vietnam holds a 19 percent share of the US market, while Thailand holds 11 percent; Vietnam has a 13.6 percent share of EU markets against Thailand’s 11 percent; and in Japan it occupies a 13.9 percent market share in comparison with Thailand ’s 10 percent.
Of the major markets, Thailand only has the advantage in China with an 11 percent market share, compared to Vietnam’s 7.3 percent.
Economic experts in Thailand have forecasted that Vietnam will become Thailand ’s major export rival, particularly for low-priced goods to major markets.
Even though Thailand ’s exports have been projected to grow 10.5 percent this year to a value of 166.9 billion USD, compared to a 15.1 percent contraction to 151 billion USD last year, the devaluation of the Vietnamese currency could slow down Thailand ’s export growth.
Many industrial specialists in Thailand have warned that Thai manufacturers risk losing their competitive edge in major export markets in a potential new context. The US, Vietnam and Australia are in negotiations to join the “Trans-Pacific Strategic Economic Partnership Agreement” (TTP) with New Zealand , Chile , Singapore and Brunei . If Vietnam joins the trade zone it will enjoy preferential trade tariffs with all other member countries.
Sectors that would be the most influenced include garments, shoes, farm products, electronics and food processing.
Vice-chairman of the Thai Garment Manufacturers Association Sukij Kongpiyacharn said American importers would choose Vietnamese garment and texttile products once the TPP with Vietnam was set up and a Bilateral Free Trade Agreement was signed./.
