Despite ongoing geopolitical tensions in Europe and the Middle East, the Thai National Shippers’ Council (TNSC) maintains a positive outlook, expecting export values to grow by 1-2% in the latter half of the year.
TNSC Chairman Chaichan Chareonsuk reiterated the organization’s forecast of 1-2% export growth for the year, underlining a sense of caution due to various unpredictable factors in the coming months. These factors include geopolitical conflicts, the US-China trade war, the upcoming US presidential election, escalating production costs, such as daily minimum wage hikes, energy price surges, elevated freight expenses, container shortages amidst China’s increased production and exports, and liquidity challenges faced by small to medium-sized shippers involved in export-focused manufacturing.
The council anticipates the Thai baht to continue its weakening trend against the US dollar, with an expected range of 36-37 baht per dollar, potentially enhancing export competitiveness in international markets.
TNSC advised governmental support in maintaining stable energy prices, daily minimum wages, and logistics expenses at appropriate levels. Additionally, exporters were encouraged to establish annual freight contracts with carriers or freight forwarders to secure rates and ensure efficient operations and cost management throughout varying business cycles.
Stressing the importance of investment promotion, particularly in export-oriented industries like electronic components and electrical appliances, Mr. Chaichan emphasized the necessity for credit access for vulnerable groups and small to medium-sized enterprises to help boost their export capabilities.
The council proposed bolstering overseas trade promotion efforts to elevate the global visibility of Thai products and suggested restructuring the export sector to facilitate local entrepreneurs’ adaptability and competitiveness in the long run.
Expressing optimism, Mr. Chaichan underscored the significance of domestic political stability in achieving Thailand’s export growth target of 1-2% for the year.
