Thai shippers have reiterated their calls for the expedited formation of a new government to swiftly allocate funds for activities to increase exports, which have remained sluggish for several months.
Chaichan Chareonsuk, chairman of the Thai National Shippers' Council (TNSC), said on Tuesday the export sector still faces several risk factors, including geopolitical conflicts that greatly impact global economic fluctuations and slow economic expansion of Thailand's main trading partners, including the US, Europe and China.
High global interest rates affect financial liquidity, while elevated production costs, including for electricity and raw materials, hamper Thailand's price competitiveness, he said.
In addition, changing weather patterns are reducing water levels in dams and reservoirs, affecting agricultural production in the latter half of the year, said Mr Chaichan.
"Politicians should work to form a government to drive export activities in the second half of the year, while continuing free trade agreement negotiations. This should bolster the economy and help in seeking new trade markets," he said.
"Both the public and private sectors must expedite management strategies to mitigate the impact of increased production costs, such as electricity, labour and interest rates. This will have implications for trade negotiations with trading partners, including crucial competitors. Additionally, there's a need to speed up investment to enhance production processes and related activities to adapt to new trade measures that continue to arise."
According to Mr Chaichan, both the public and private sectors should also: enhance financial liquidity for business operators within supply chains, particularly and small and medium-sized enterprises; accelerate the skill and competency development of the workforce to align with market demand; expedite the exploration of new forms of international transport to reduce costs; and elevate efficiency and logistics to enhance competitiveness in trade.
The private sector needs to swiftly adapt using digital technology to improve production processes and delivery, he said.
According to the latest Commerce Ministry data, the customs-cleared value of exports dipped for a ninth consecutive month in June, falling by 6.4% to US$24.8 billion, while imports decreased by 10.3% to $24.7 billion, resulting in a trade surplus of $57.7 million.
Exports of agricultural and agro-industrial products contracted by 8.6% year-on-year in June to $4.53 billion, while industrial product exports dropped 4.6% to $19.3 billion.
For the first half of 2023, exports decreased by 5.4% to $141 billion, while imports declined by 3.5% to $147 billion, resulting in a trade deficit of $6.3 billion.
The TNSC estimates exports this year to range from a -0.5% dip to 1% growth.