Thailand's Exports to Rise Moderately In 2010

Aat Pisanwanich, director of the UTCC International Trade Study Center, said the center forecast Thailand’s exports this year would grow in a satisfactorily manner.

Exports of products to China and ASEAN are set to increase on implementation of the ASEAN Free Trade Agreement and the ASEAN-Sino Free Trade Agreement.

It would result in the higher growth rate of exports in the food, agriculture, and industrial sectors. The center projected exports in 2010 would expand 10.5 per cent compared with its contraction of 15.1 per cent last year, he said.

The export value for the whole year is likely to reach US$166.91 billion while the value of imports is set to stay at $149.88 billion, resulting in trade and current account surpluses of $17.02 billion and $18.74 billion compared with $19.96 billion and $21.25 billion respectively in 2009.

Although the world economy and the ASEAN Free Trade Area agreement would help boost Thailand’s exports this year, there are many negative factors that need be monitored.

They include a possible depreciation of the Vietnamese dong, a stiffer price competition in exports to China by ASEAN under the AFTA and ASEAN-Sino free trade area agreements, an expected rise in interest rates, higher crude prices in the world market, and a non-tariff barrier imposed by superpowers including the United States and European Union.