TTB Reports 70% of Thai Businesses Disrupted, Urges Rapid Adaptation for Export Market
October, 16 2024
Export Landscape and Market Disruption
According to TTB Analytics, Thailand’s global export market share has stagnated over the past 30 years, while competitors like Vietnam and Malaysia have enhanced their production capabilities. Thai exports, mainly agriculture and processed food, remain in demand but are vulnerable due to over-reliance on markets like the U.S. and China.
Industries relying on Chinese imports—such as electronics, home appliances, and chemicals—face growing competition, with Vietnam and Malaysia rapidly expanding their industrial sectors. Thailand’s export market share in key products, such as refrigerators, dropped from 4.7% in 2013 to 3.3% in 2024.
Impact of Global Trade Agreements
Thai exporters also struggle with rising international trade barriers, which have increased sixfold over the past decade. New regulations such as the EU Deforestation Regulation (EUDR) and the Carbon Border Adjustment Mechanism (CBAM) raise operational costs and compliance challenges. Additionally, Thailand’s higher tariffs compared to competitors like Vietnam and Malaysia weaken its global competitiveness.
How Thai Businesses Must Adapt
TTB Analytics categorizes Thai businesses into four risk groups based on export dependence and reliance on Chinese imports:
- High-Risk Group (16%) – Export-dependent & high Chinese import reliance: Mainly OEM manufacturers reliant on Chinese raw materials, facing severe market risks.
- Moderate-High Risk (12%) – Heavy reliance on Chinese imports, low exports: Includes steel and machinery industries, competing against Chinese imports in the domestic market.
- Moderate Risk (40%) – Balanced export-import dependence on China: Includes chemical, packaging, and automotive sectors, at risk if unable to expand markets.
- Low-Risk Group (32%) – Minimal reliance on China: Includes food and tourism, less affected by trade shifts.
Conclusion
Thai exports face mounting global competition and industry disruptions. Businesses must add value to products, explore new markets, and reduce Chinese import reliance. Rapid adaptation and strategic management will be key to survival and global competitiveness.