Thailand could benefit from higher exports to the US as Washington's trade war with Beijing threatens to deal a blow to Chinese shipments to the nation, says the Office of Industrial Economics (OIE).
"Thailand is a key manufacturing nation in Asean, exporting goods to many countries. The trade war is providing a new opportunity to Thai manufacturers and exporters," said Warawan Chitaroon, director-general of the OIE.
She advised local companies to conduct a thorough study on product development and business plans in order to replace Chinese entrepreneurs as exporters of certain products to the US.
Thai manufacturers should take better care of their manufacturing processes, making sure they will not be carbon-intensive in order to keep the products in line with campaigns against global warming, said Mrs Warawan.
Her office is working with the state and business sectors on a plan to help Thai companies improve and further develop products for export to the US.
Thailand can convince foreign business people to invest in the country to set up companies related to electric vehicles (EVs), lithium-ion batteries, solar panels and building materials.
"Growing demand for solar panels, EVs and lithium-ion batteries will drive investment in the manufacturing of these products in the country," said Mrs Warawan.
Earlier this year, President Biden's administration cited Beijing's unfair trade practices for the decision to increase tariffs, with EV tariffs to be quadrupled to a 100% rate, solar cells and semiconductors doubled to a 50% rate, and certain steel and aluminium imports from China raised to 25%, more than triple the current level, according to media reports.
China reportedly vowed to take measures to protect its interests.
Mrs Warawan said the Ministry of Industry is studying the impact of the investment of Chinese companies in Thailand following the trade war, because products exported from Thailand can be viewed by some buyers as Chinese products which are made in Thailand.
"The government is concerned about this issue, so the Office of Industrial Economics is looking into it," said Mrs Warawan.