FTI Cut Export Target to 0-1% Suggested Government Urgently Set Up War Room Handle Trade War.
Join Exim Bank Strengthen Thai SMEs Potential to expand TI Cut Export Target to 0-1% Suggested Government Urgently Set Up War Room Handle Trade War. Expand Trade-Investment.
23-5-2019—FTI made the third time cutting Thailand export target down to just 0-1% from 5-7% in the beginning of this year and from 3-5% in April. Suggested government to set up War Room to handle China-USA trade war impacting Thailand’s economy. Concerned China flowing in more and more investment to Thailand and ASEAN to export to USA under the lower tariff rate. Warning government EEC BOI to screen well the investment, not focusing too much on the volume of investment for GDP but to make sure it is not the environmental polluted kind of industry.
Today before the MOU signing ceremony between Federation of Thailand Industry (FTI) and EXIM Bank to strengthen Thai SMESs potential to expand trade and investment oversea, FTI deputy chairman Mr. Kriangkrai Teannukul who was just assigned by FTI chairman to work as the Chairman of The Committee Study USA-China Trade War Impact said the committee wish government to urgently set up The War Room team by gathering relevant ministry including Ministry of Industry, Commerce , Labor and Finance to closely monitor the update situation impacting Thailand economy, while the national trade and investment strategic plan must be revised for implementation, especially how to be more proactively expand trade and investment to each targeting strategic specific town of each country over sea.
Mr.Kriangkrai said Thailand must beware of too much export growth to China after Chinese investment strongly flowing in, aiming to use the right of lower tariff export to USA.
“USA raised the import tariff guard to China will be surly make China goods spill over import to ASEAN, especially the 5,000-6,000 items of china’s products that was guard by USA.Now Thailand is ranked Number 11-12 of the country having trade advantage against USA. If Thailand’s ranking changed by more export impacting especially by more investment from China, then US might also revise the import tariff guard against Thailand in the future. Then Thailand business enterprises must be proactively adjusted to grow in the new market zone, especially in CLMV and BRIC group of countries.”
“Now Thailand export 12% to China and export 10% to USA, accounted to 22% export to the two countries. While there are three ways of how China’s product spill into Thailand ; 1) Through Online market place such as Alibaba, TenCent and Shopee., etc. 2) Import to replace the domestic production. 3) Import through the border trade .FTI must support Thailand’s SMEs to expand the market and investment to the new market oversea to reduce the negative impact from China-USA Trade War.”
“The MOU signing ceremony between FTI and EXIM Bank today is one of the step to strengthen Thailand’s export by promoting Thailand’s SMEs to overcome the obstacle expanding their business to the new market.” said Mr.Kriangkrai.
“EXIM Bank is working according to the mandate received from government to support Thai especially in ASEAN, including in South Africa such as Kenya., etc.” said Mr.Pisit Sereewiwattana EXIM Bank Managing Director.
“Now Kenya, South Africa is demanding the 2 Stroke Motorcycle parts investment to produces in the countries. If it possible the production will be replaced the existing market which is 90% normally using the import parts, especially from China. But the high import tariff made the price of the parts too high compare with its quality.”
EXIM Bank Managing Director said after talking to FTI Chairman Mr.Suphan Monkonsuthee who suggest to talk with SENSO who is the chairman of Automotive Group of Industry.
