Thailand market news from September 12 to September 16

VNE portal provides information on the Thai market from September 12 to September 16, compiled by the Vietnam Trade Office in Thailand.

Thai rice exports are likely to exceed 8 million tons

Thai rice exports are likely to exceed 8 million tons this year if Iraq continues to import and India applies export restrictions and 20% export tax of other types until the end of the year to increase supply and stabilize prices. In the midst of below-average rainfall, production is limited. Thailand is currently the third largest rice exporter in the world, after India and Vietnam, with rice export turnover in the first 7 months of 2022 reaching 4.09 million tons, up 54% over the same period.

Thailand’s export prospects are good amid favorable weather and the baht at a 16-year low against the dollar. Thailand recorded an increase in demand for rice as countries were looking for ways to ensure food security and replace wheat and corn. Thailand’s Ministry of Agriculture and Cooperatives forecasts that the country’s rice production will reach 26.92 million tons in the 2022/23 season, up 2.09% from the previous season.

Consumer confidence index hits the highest level in 8 months

The latest report by the University of the Thai Chamber of Commerce (UTCC) shows that Thailand’s Consumer Confidence Index now stands at 43.7, the highest level in the past eight months thanks to the easing of COVID-19 measures. 19 and efforts to boost consumer purchasing power.

The factors driving the consumer confidence index include economic recovery, COVID-19 epidemic under control, businesses resumption of business activities, lower fuel prices, tourism growth again, and other factors. Government’s economic recovery measures (welfare campaign, production promotion) and increase in agricultural prices.

Thai cassava exports continue to increase

The outlook for Thailand’s cassava exports is expected to continue to increase in the second half of 2022 due to increased global demand as importers seek alternatives to maize, which has increased prices due to the Russia-Ukraine conflict. Thailand’s Ministry of Commerce forecasts that Thailand’s cassava exports will reach 11 million tons in 2022, up from 10.4 million tons in 2021. Export value will reach 130 billion baht ($4.2 billion). ), an increase of 6% compared to 2021.

From the beginning of the year until now, 70% of the export turnover of cassava and cassava products from Thailand are exported to China. Other export markets include Japan, Indonesia and South Korea. Countries struggling to control inflation, rising post-pandemic demand, changing weather and, most recently, the Russia-Ukraine conflict are the main reasons why countries are allocating billions of dollars in food subsidies. and fuel while other countries focus on finding new suppliers and alternative food sources.

Thailand promotes export promotion

The Ministry of Commerce of Thailand committed to continue boosting export promotion activities in the first 6 months of 2022 with the goal of raising export revenue to 285 billion USD by the end of the year, up 14 billion USD compared to 2021. 271 billion USD). Despite facing many challenges, exports still recorded strong growth this year with the value of customs clearance exports reaching US$173 billion in the first 7 months of the year, up 11.5% over the same period last year. 2021. Imports also increased by 21.4% to $183 billion, leaving the trade deficit at $9.91 billion.

Favorable factors include the devaluation of the baht, lower freight rates, a greater number of shipping vessels and containers, and a downward trend in global energy prices that help lower commodity prices and increase market competitiveness. global school. However, inflation risks and interest rate hikes from many countries and political conflicts could put pressure on the global supply chain.

The Ministry of Commerce is planning to promote trade cooperation through Small Free Trade Agreements (mini-FTAs) with overseas provinces and cities. It is expected that from now until the end of the year, mini-FTA agreements will be signed with Gyeonggi province of Korea and Shenzhen and Yunnan of China. Previously, five mini-FTAs had been signed with Kofu city of Japan, Hainan and Gansu provinces of China, Telangana state of India and Busan of South Korea.

Vietnam Trade Office in Thailand