Bangkok--27 May--EXIM Thailand
Mr. Suthanai Prasertsan, Acting President of Export-Import Bank of Thailand (EXIM Thailand), revealed that cross-border trade plays an increasingly important role in Thailand’s export and economic growth. In 2014, Thailand’s border trade with neighboring countries rose to 990 billion baht, with exports accounting for 590 billion baht or 8% of the total export value, nearing export to main markets such as the U.S.A., European Union and Japan.
According to EXIM Thailand’s Acting President, the Bank stands ready to support Thai business expansion along the border areas. Apart from trade in consumer goods, Thai entrepreneurs are encouraged to relocate or expand their production base in the neighboring countries as well as border provinces designated by the government as Special Economic Development Zones (SEZ). In addition to providing privileges relating to labor force and infrastructural facilities, the SEZ is aimed to benefit from the neighboring countries’ purchasing power which is rising in leaps and bounds. The GDP per capita in Cambodia, Lao PDR and Myanmar, for example, increased by 20-60% from 5 years ago with the GDP expected to grow by 7-8% annually in the next 5 years and beyond. Thai exports with good prospects comprise automobiles, jewelry and accessories, cosmetics and high-end products, as reflected in the import value into these countries which doubled over the last 10 years. Furthermore, Thai entrepreneurs are encouraged to run service businesses such as restaurants and department stores to satisfy growing demands of the middle class in the neighboring countries.
Mr. Suthanai said that EXIM Thailand provided financial services to promote cross-border trade and investment with an objective to enhance the competitiveness of Thai entrepreneurs engaging in the export of goods and services to neighboring countries as well as those in the related supply chains. The Bank’s services include short- and long-term loan, export credit insurance and buyer’s plus supplier’s credit to help increase cross-border trade payments through the banking system, provide insurance coverage against overseas non-payment risks, facilitate and speed up trade settlements and, eventually, increase the trade volumes.
In regard to Thailand’s cross-border trade transactions, major Thai exports to Myanmar are refined oil and beverages while the major imports from Myanmar are natural gas, cattle, buffaloes, swine, goats, sheep and aquatic animals. Major Thai exports to Lao PDR include refined oil, automobiles and parts while the major imports from Lao PDR include copper and products, telecommunications equipment and accessories, and processed wood. Major Thai exports to Cambodia are non-alcoholic beverages, vehicles and parts, engines while imports are telecommunications equipment and accessories, wire and cable, machinery and parts. Major Thai exports to Malaysia include rubber and products, computers and accessories while imports are data media for picture and sound recording, magnetic tapes and disks for computer, computers and accessories.
“Buoyed by both internal and external factors including the government’s cross-border trade promotion policy and the establishment of Special Economic Development Zones, along with the official establishment of AEC and impressive economic growth of neighboring countries, cross-border trade between Thailand and neighboring countries continues to expand consistently. EXIM Thailand is, therefore, prepared to offer integrated financial solutions to Thai entrepreneurs and investors engaging in international trade and investment, particularly cross-border trade with the neighboring countries where Thailand has comparative advantages due to our social and cultural proximity,” said Mr. Suthanai.