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Ministry of Commerce Expedites Border Reopening, Aims for 4% Export Growth

February, 18 2021

Border Trade Growth Trends & Challenges

Over the past 10 years, Thailand's border and cross-border trade has shown continuous growth, supported by ASEAN economic cooperation, which has reduced tariff barriers and enhanced trade facilitation, particularly with neighboring countries.

However, border trade growth slowed down in the past two years due to:

1. US-China Trade War – led to a 3.43% decline in exports in 2018.
2. COVID-19 Pandemic – further reduced exports, with trade value dropping by 80 billion baht, from 800 billion baht due to border closures aimed at controlling the outbreak. The most affected border crossings were with Malaysia, Myanmar, Laos, and Cambodia.

Despite these challenges, there was positive news in 2021, as trade through China, Vietnam, Singapore, and other countries grew by 8.41%, though its overall value remains lower than border trade with Malaysia, Myanmar, Laos, and Cambodia.

Government Measures to Reopen Border Checkpoints

Recognizing the slowdown in exports, the Ministry of Commerce has introduced measures to reopen border checkpoints to revive trade.

• Currently Open: 40 out of 97 border checkpoints.
• Pending Reopening: 3 additional checkpoints are being prioritized:
  1. Pa Saeng Border Checkpoint (Ubon Ratchathani)
  2. Chiang Khan Border Checkpoint (Loei)
  3. Hai Sok Port (Nong Khai)

Addressing Container Shortages

• The reopening of land border trade routes will help alleviate the container shortage by shifting cargo transport to land-based logistics.

Myanmar Border Trade & Political Risks

• Myanmar’s border trade is closely watched due to its high growth potential, with 2,400 km of shared border with Thailand.
• Key permanent checkpoints: Mae Sai, Mae Sot, and Ranong.
• However, the Myanmar coup raises concerns about potential international sanctions, which could negatively impact Thailand’s trade with Myanmar.

Expected Economic Impact

• With the accelerated border reopening, the Ministry of Commerce projects a 4% trade recovery.