Thailand Business News

According to the latest Regional Economic Outlook published by the International Monetary Fund (IMF), the Asia and Pacific region is exhibiting strong resilience amid prevailing challenges faced by policymakers.

The growth rate for this region is expected to increase from 3.8 percent last year to 4.6 percent this year, primarily due to the reopening of China and surging consumption that is boosting regional growth despite weak demand from other parts of the world. However, there are potential risks to this growth outlook, such as spillovers from greater-than-expected US monetary policy tightening and supply chain disruptions caused by geoeconomic fragmentation.

Despite the positive growth projections, the Asia and Pacific region also faces significant challenges. In the near term, policymakers need to maintain tight monetary and fiscal policies to stabilize public debt and bring inflation back to central bank targets. To manage global shocks, an integrated policy…

According to a recent report by the Bank of Thailand, China and Thailand are exploring the use of their local currencies for bilateral trade settlements. The aim is to reduce reliance on the US dollar and enhance financial cooperation between the two countries. The report claims that using yuan and baht for trade payments could lower transaction costs, increase efficiency, and facilitate trade flows. It also highlights the potential benefits of developing a cross-border payment system and a currency swap arrangement between China and Thailand.

In January 2021, both countries renewed the Chinese Yuan – Thai Baht Bilateral Currency Swap Arrangement for a period of five years. This arrangement allows for the exchange of local currencies up to RMB 70 billion or THB 370 billion.

Thailand, which depends on China for trade and tourism, is anticipated to gain a lot from the country’s reopening, according to a World Bank’s East Asia and Pacific Economic Report.

A risky…

In April 2023, PTT Group, Thailand’s state-owned oil and gas conglomerate, announced a $7 billion investment in producing green hydrogen with ACWA Power, Saudi Arabia’s leading renewable energy company.

The project aims to construct a plant in Thailand capable of producing 225,000 tons of green hydrogen yearly, equivalent to around 1.2 million tons of ammonia.

Green hydrogen is a type of renewable energy produced by splitting water molecules into hydrogen and oxygen using electricity from sources like solar or wind. Unlike fossil fuels, green hydrogen releases no greenhouse gases when in use, making it a sustainable alternative for various applications.

Green hydrogen is promising for powering heavy-duty electric vehicles (EVs) such as buses, trucks, and trains that require more energy than batteries can offer. Moreover, green hydrogen can be converted into ammonia used for fertilizers, chemical feedstock, or fuel for ships and power plants.

Thai governm…

Thailand’s Excise Department is planning to impose a carbon tax on energy, transport, and industrial sectors to help the country reach carbon neutrality by 2050 and net zero greenhouse gas emissions by 2063.

Encourage companies to use cleaner or renewable energy

The carbon tax will encourage companies to use cleaner or renewable energy, and reduce CO2 emissions by up to 30%. The tax study is underway and will be completed this year.

The energy sector is the largest contributor to CO2 emissions in Thailand, followed by transport and industrial sectors. The carbon tax is expected to help cut the cost of imported fuel and avoid rising costs due to EU’s carbon border adjustment mechanism. Thailand is promoting electric vehicles, greater use of renewable energy, and the carbon tax to meet its environmental goals. 

Energy sector accounts for 35% of CO2 emissions

The energy sector accounts for 35% of CO2 emissions in Thailand because most electr…

BANGKOK (NNT) – The University of Thai Chamber of Commerce’s (UTCC) Institute of Trade Strategies conducted a survey which found that business owners are optimistic about Thailand's economic growth prospects this year.

Chinese tourists boost expected

The poll discovered that business operators anticipate the economy will grow by over 3% in 2023, propelled by an anticipated increase in the number of Chinese tourists visiting the country and financial circulation from the upcoming general elections.

The survey was conducted with business operators from various sectors nationwide, 76% of whom run small businesses in services, trades, industries, and agriculture. Participants suggested that their business performance was similar to that of last year, but they anticipate improvements within the next six months, leading to pre-pandemic levels.

The alleviation of disease control restrictions has allowed for an improvement in business and economic a…

The value of Thai merchandise exports in February 2023 contracted -4.7%YOY, marking a five-month consecutive contraction.

 

Exports to the U.S. and Europe 28 worsened as economic conditions and uncertainty increased. Meanwhile, exports to China shrank less.

The overall picture of the Thai export market in February is very different. Exports to western markets deteriorated in line with worsening economic conditions and increasing uncertainties.

In February, imports rose 1.1% from a year earlier, resulting in a trade deficit of US$1.11 billion for the month.

The value of Thai imports in February was 23,489.7 million US dollars, growing 1.1%, slowing down from 5.5% in the previous month. (Which is a product that does not reflect actual international trade) found that it grew by 3.4%, reflecting the still sufficient demand for imports and expanding in line with the Thai economic recovery trend. While the value of exports continued to cont…

Growth in developing East Asia and the Pacific is forecast to accelerate in 2023 as China’s economy reopens, while the pace of growth in most of the economies in the rest of the region is anticipated to ease after a strong rebound last year, a World Bank report said on Thursday.

This article was originally published here: Growth in developing East Asia to accelerate to 5.1% says World Bank

Source

On October 28, 2021, Cambodia issued its tenth round of stimulus measures to help specific industries mitigate the economic impact caused by the ongoing pandemic. These latest measures are an extension of the support provided in the ninth stimulus package, which was issued in June 2021.

Meanwhile, the tourism industry contributes 12 percent of GDP and the government views this industry as an indispensable path towards economic recovery. As such, the government also plans to attract seven million tourists by 2025 and 11 million domestic tourists by 2023.

Suspended workers from the garment, textile, and footwear sectors will continue to receive the standard US$40 per month until the end of December 2021. Moreover, an additional US$30 per month contributed by their employers (thus totaling US$70 per month) will also continue.

Suspended workers of hotels, guest houses, restaurants, and tourism workers will be eligible to receive US$40 per month,…

The Siam Commercial Bank (SCB), one of Thailand’s largest commercial banks, said in its latest economic outlook report that the country’s economy may wait until the second semester of 2023 to return to 2019 growth levels.

 The SCB Economic Intelligence Center (EIC) revised Thailand’s economic forecast for 2021 downward to 0.7% from 0.9% previously following a severe and prolonged third-wave outbreak which led to adverse impacts on private consumption.

For 2022, EIC forecasts Thailand’s economy to grow 3.4% with recoveries in both domestic and external demand.

EIC expects the situation to improve in the beginning of the fourth quarter from a significantly higher rate of fully-vaccinated individuals, which would benefit confidence and domestic economic activity recovery.

Exports have continued to expand but should slightly slow throughout the rest of the year from a higher base and the spread of the Delta variant, wh…