Thailand’s economy is export-driven, with exports accounting for roughly 65% of GDP. But that is not the only reason why you should Open a Trading Company in Thailand! You should read and scroll to the bottom line of this article to get the inspiration for the same. Thailand is seeing positive developments in exports, new business registrations, and manufacturing output. This is a great indication that the country’s economy is progressively improving despite the pandemic’s persistence.
Thai Export Industry Overview
- Electronics – 14%
- Automobiles – 13%
- Machinery and Equipment – 7.5%
- Foodstuffs – 7.5%
The above account for the majority of the country’s exports, which is 86 percent of total shipments. Agricultural products, primarily rice, and rubber, make up 8% of overall shipments.
China (12%), Japan (10%), the United States (10%), and the European Union (10%) are the top export partners. Malaysia, Australia, and Singapore are among the others.
Predictions & Current Situation
Thailand’s economy is based on exports. Thai National Shippers Council predicted that exports would expand by 8% in Q1 of 2022 in comparison to last year. This is greater than the previous prediction of 5% growth. But surprisingly, the actual growth is even higher.
Meanwhile, in January of this year, new business registrations reached their highest level in a decade. More than 7,900 firms opened their doors this January, increasing 9% over the same month the previous year.
The number of new business registrations is one indicator of how optimistic the Kingdom’s entrepreneurs are. When compared to traditional business sentiment indexes, they demonstrate a stronger commitment to a positive outlook for the future.
Existing manufacturing firms, on the other hand, boosted their output for the fifth month in a row in January. With the lifting of public health restrictions due to the pandemic, demand for items increased, bringing the Manufacturing Production Index to 104.4 points.
Record Growth in Thailand’s Export Volumes
Thailand’s exports increased 24.2 percent year over year in December 2021, following a 24.7 percent increase the month before, and compared to market expectations of a 15.5 percent increase.
Outbound shipments increased by double digits for the fourth month in a row, indicating continued strong worldwide demand, with exports to the United States (36.5%), China (14%), and ASEAN countries all increasing (24%). Sales increased 17.1% year over year, the most in 11 years, thanks to robust international orders and a weak baht. Exports are likely to expand between 3% and 4% this year, as strong global demand is expected to continue.
Exports, which are a crucial engine of the Thai economy, increased by around 17% last year, with shipments to Russia totaling US$1 billion, or 0.38 percent of overall exports. According to data from the trade ministry, exports to Ukraine accounted for 0.05% of total exports.
Thailand’s exports increased more than predicted in December compared to the previous year, with full-year growth of 17.1%, the highest in 11 years, aided by better global demand and a weaker baht.
Exports jumped 24.2 percent in December compared to the same month a year ago, exceeding a Reuters poll’s prediction of 15.5 percent and following November’s 24.7 percent growth.
According to Commerce Minister Jurin Laksanawisit, the baht currency is likely to continue supporting, and container scarcity is projected to lessen. Thailand’s inclusion in the Regional Comprehensive Economic Partnership (RCEP) trade agreement will also benefit the country, he said.
The Bottomline
The most noteworthy points that can inspire you to open a trading company in Thailand at this moment are –
- The increase in the volume of imports & exports is significantly higher than market expert predictions, hence, highlighting the potential of the industry in Thailand.
- The trend is predicted to be booming in the future.
- If this is the growth at the time just when the world economy is restoring from the COVID crisis, the same can be much higher when everything springs back to normalcy.
- The Thai cabinet approved an additional contribution reduction from 3% to 0.5% for February and March 2021 due to COVID situations. This is still prevalent and you can avail of tax benefits.
Therefore, irrespective of the fact, whether you are a Thai or Foreigner willing to do business in Thailand, you should start thinking now. Now is surely the right time to open a trading company in Thailand. For all types of support in this regard, Contact Us! You can also email us at [email protected] to book a free consultation session.
