Thailand is set to enhance collaboration with China to establish itself as a primary gateway for Chinese exports, according to Finance Minister Pichai Chunhavajira. Speaking at the ACMA Business Forum 2024, Minister Pichai emphasized the importance of fostering a cooperative trade relationship rather than competing with China, one of the world’s top exporters and importers.
He highlighted Thailand’s strategic logistical advantages, which could be leveraged to facilitate Chinese exports to the Andaman region, supported by the government’s proposed land bridge project.
Pichai also pointed out Thailand’s favorable agricultural landscape, covering 80-90% of the country’s area, compared to China’s limited arable land. Furthermore, he noted that Thailand could position itself as an aviation hub for long-range flights, capitalizing on its geography.
Despite being well-prepared in various sectors, Pichai acknowledged the necessity of attracting foreign direct investment (FDI) to bolster the economy. Currently, FDI constitutes less than 20% of total investment in Thailand but is crucial for introducing advanced technologies and developing ancillary industries.
“We possess sufficient capital, yet we have been slow to adapt over the past decade and a half. It is imperative to accelerate reforms to facilitate economic growth in light of an aging population,” he stated.
As of 2023, Thailand has transitioned to an “aged” society, with the elderly representing over 20% of the population. The number of individuals aged 60 and older is projected to increase to 30% within the next decade, correlating to a balance between the working-age population and the elderly, excluding children.
Pichai attributed the declining birthrate primarily to economic challenges, asserting that economic reform is essential to address accompanying social issues.
Turning to the status of Thailand’s small and medium-sized enterprises (SMEs), Sangchai Theerakulvanich of the Federation of Thai SMEs raised concerns over various impacts from Chinese capital, including tax avoidance on Chinese goods that undermines the Thai economy, as well as the prevalence of low-standard products lacking necessary state certifications.
Sangchai noted the monopolization of Thailand’s fruit trade by Chinese traders and highlighted the adverse effects of affordable Chinese construction materials on the local construction industry. Moreover, he remarked on the growing dominance of Chinese logistics companies operating fleets of trucks within Thailand.
Concerns have also arisen regarding the emergence of platforms facilitating direct access to inexpensive goods from Chinese factories, which are likely to harm Thai products and SMEs.
Economics expert Sompop Manarungsan advised urgent measures from the new government to address the negative perceptions surrounding Chinese investments and products. He stressed that failing to rectify these views could lead to trade confrontations, posing threats to Thailand’s export and tourism sectors.
