Thailand may lose CLMV markets to China unless it takes steps to increase exports, economist warns

[webfact]

Thailand may lose CLMV markets to China unless it takes steps to increase exports, economist warns

By The Nation

 

Aat Pisanwanich

 

Thailand is likely to lose CLMV (Cambodia-Laos-Myanmar-Vietnam) markets to China in five years as this country currently has the most market share in the bloc, an economist has warned.

 

A study has found that between 2004 and 2018, Asean countries imported seven times the amount of products it had imported previously from China, valued at US$277 billion (Bt6.85 trillion), while exports to the Asian giant were 4.1 times higher and worth $194.53 billion during the period, said Aat Pisanwanich, director of the University of the Thai Chamber of Commerce’s Centre for International Trade Studies.

 

Exports within Asean itself dropped, especially to the CLMV bloc. The CLMV export rate to China was 22.3 times higher, valued at $58.21 billion, while imports were 17.6 times higher, valued at $95.37 billion, he said.

 

China currently enjoys the highest market share in the CLMV, which can pose a risk to Thai exports in the next five years.

 

In five years, Thailand could see a loss of market share in Vietnam for thread, woven clothes, synthetic fibre, lobster, shrimp, wood products, steel, corn, leather, household tools, travelling bags, tea, coffee, lead plates, shells, electric containers, dried fruit, chemicals, concrete, sugar, cassava, batteries, sparkler products and matches, Aat said.

 

In Myanmar, the loss might occur for such products as liquor, sauces, seasonings, powder, clothes, grain, tyres, paper, utensils, fish products, spoons and forks. In Laos, it could be cereals, flour, synthetic rubber, sugar, blankets, artificial flowers, artificial leaves, artificial fruit and carpets, while Thailand could see decreasing exports of sugar, lime, cement and fabrics for industrial use to Cambodia.

 

Foreign direct investment from China in 2018 expanded 124 per cent from 2011 – most of it going to Cambodia – while Chinese investment in Thailand expanded by $497 million, Aat said.

 

To avoid business risks, Thailand needs to sell more products to Laos as it’s a neighbouring country or make that nation a production base for exporting goods to other countries, he advised.

 

Moreover, the provinces located near the China-Laos Railway need to find opportunities for businesses building distribution centres for products made in Thailand, he said, adding that Thai businesses must increasingly open outlets at Chinese hotels and shopping centres so that more Thai goods can be sold in China.

 

Source: https://www.nationthailand.com/news/30378777

 

-- © Copyright The Nation Thailand 2019-11-27

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[legend49]

Simple, compare the prices between CLMV and Thailand that tells you why. Bit like yesterday Somchai tells me my WD HDD is 4 years old thats why in wont work, buy a new one only 4000 baht. Trip to Pantip Plaza , talk with another EXPERT and it is a broken USB cable, cost 120 baht and fixed the problem. Thais just want to sell you expensive and new remedies. Same as exports look at prices of Vietnams rice to Thai rice.

[Fex Bluse]

Thailand is finally getting squeezed from all sides. 

 

This is what happens when you 

 

1) allow a small number of Thai-Chinese families to dominate and exploit the economy at the expense of the middle and lower classes 

 

2) purposefully keep most of the population uneducated to preserve certain characteristics of Thainess (such as knowing one's place in the social hierarchy) 

 

3) rely heavily on superficial tourism to drive economic growth whilst sending consistent and clear signals to foreigners that you actually don't like them in Thailand 

 

4) fall into the middle income trap 

 

5) reinforce a world famous xenophobia that prevents the country at large from learning from other more advanced countries 

[Fex Bluse]

I'm happy they are hurting. 

 

Pain is the only way the country will improve. 

[ChrisY1]

39 minutes ago, legend49 said:

Simple, compare the prices between CLMV and Thailand that tells you why. Bit like yesterday Somchai tells me my WD HDD is 4 years old thats why in wont work, buy a new one only 4000 baht. Trip to Pantip Plaza , talk with another EXPERT and it is a broken USB cable, cost 120 baht and fixed the problem. Thais just want to sell you expensive and new remedies. Same as exports look at prices of Vietnams rice to Thai rice.

Didn't know there were still shops operating in PP......mostly empty 6 months ago

[PatOngo]

20 minutes ago, Fex Bluse said:

Thailand is finally getting squeezed from all sides. 

 

This is what happens when you 

 

1) allow a small number of Thai-Chinese families to dominate and exploit the economy at the expense of the middle and lower classes 

 

2) purposefully keep most of the population uneducated to preserve certain characteristics of Thainess (such as knowing one's place in the social hierarchy) 

 

3) rely heavily on superficial tourism to drive economic growth whilst sending consistent and clear signals to foreigners that you actually don't like them in Thailand 

 

4) fall into the middle income trap 

 

5) reinforce a world famous xenophobia that prevents the country at large from learning from other more advanced countries 

Excellent perspective.

[Isaan Alan]

27 minutes ago, Fex Bluse said:

I'm happy they are hurting. 

 

Pain is the only way the country will improve. 

Unfortunately the rich are exempt from pain and the pain burden will fall on the middle and poorer classes

[Fex Bluse]

9 minutes ago, Isaan Alan said:

Unfortunately the rich are exempt from pain and the pain burden will fall on the middle and poorer classes

This is true, and sadly not much will be done about it in Thailand. 

 

As long as the rich Thais can convince the poor ones that fate is to blame, or having lived past good or bad lives, regular Thais will not rise up. 

 

The wealthy Thais are perhaps the luckiest people on the planet as they have an entire country as their playground with no resistance.

 

With respect, they've effectively domesticated the native population. 

[NCC1701A]

5 hours ago, webfact said:

In five years, Thailand could see a loss of market share in Vietnam for thread, woven clothes, synthetic fibre, lobster, shrimp, wood products, steel, corn, leather, household tools, travelling bags, tea, coffee, lead plates, shells, electric containers, dried fruit, chemicals, concrete, sugar, cassava, batteries, sparkler products and matches, Aat said.

 

In Myanmar, the loss might occur for such products as liquor, sauces, seasonings, powder, clothes, grain, tyres, paper, utensils, fish products, spoons and forks. In Laos, it could be cereals, flour, synthetic rubber, sugar, blankets, artificial flowers, artificial leaves, artificial fruit and carpets, while Thailand could see decreasing exports of sugar, lime, cement and fabrics for industrial use to Cambodia.

and not a thing here that anybody anywhere with half a brain can produce and sell. its like going back 50 years. 

[DLock]

"To avoid business risks, Thailand needs to sell more products to Laos as it’s a neighbouring country or make that nation a production base for exporting goods to other countries, he advised.

 

Moreover, the provinces located near the China-Laos Railway need to find opportunities for businesses building distribution centres for products made in Thailand, he said, adding that Thai businesses must increasingly open outlets at Chinese hotels and shopping centres so that more Thai goods can be sold in China."

 

This is your solution? Laos...a country bordered by China and Vietnam? And selling Thai goods near the China - Laos Railway or Chinese Hotels?

 

That's like trying to sell more Laos goods in Thailand - good luck with that you simpletons.

 

[yellowboat]

6 minutes ago, NCC1701A said:

and not a thing here that anybody anywhere with half a brain can produce and sell. its like going back 50 years. 

Can produce, but can they sell?  China's sales force is quick and attentive.  Thailand's? Depends, but it is not uncommon to have a sales person hang up on you.  Also, Thailand's relationships with its neighbors is not amazing.  China factories and traders will go that extra mile.   The whole world has trouble competing with China.  This is hardly surprising. 

 

Try letting a little Beer Lao in at a decent price.  

[Vacuum]

1 hour ago, legend49 said:

Simple, compare the prices between CLMV and Thailand that tells you why. Bit like yesterday Somchai tells me my WD HDD is 4 years old thats why in wont work, buy a new one only 4000 baht. Trip to Pantip Plaza , talk with another EXPERT and it is a broken USB cable, cost 120 baht and fixed the problem. Thais just want to sell you expensive and new remedies. Same as exports look at prices of Vietnams rice to Thai rice.

4000 baht sounds like a hefty price tag for a HDD, unless it has a huge capacity.

[hotchilli]

1 hour ago, Fex Bluse said:

Thailand is finally getting squeezed from all sides. 

 

This is what happens when you 

 

1) allow a small number of Thai-Chinese families to dominate and exploit the economy at the expense of the middle and lower classes 

 

2) purposefully keep most of the population uneducated to preserve certain characteristics of Thainess (such as knowing one's place in the social hierarchy) 

 

3) rely heavily on superficial tourism to drive economic growth whilst sending consistent and clear signals to foreigners that you actually don't like them in Thailand 

 

4) fall into the middle income trap 

 

5) reinforce a world famous xenophobia that prevents the country at large from learning from other more advanced countries 

You've been paying attention... 

[Oziex1]

In the end this is all just noise. The ruling elites have their people in the government, the baht is strong and their overseas life is grand.

Let them eat cake. 

[Sticky Wicket]

11 minutes ago, Oziex1 said:

In the end this is all just noise. The ruling elites have their people in the government, the baht is strong and their overseas life is grand.

Let them eat cake. 

They know the Thai people are weak and submissive

[Ron jeremy]

1 hour ago, Fex Bluse said:

I'm happy they are hurting. 

 

Pain is the only way the country will improve. 

Love it, karma is a bitch!????????????????????????????????????????????????????????

[Ron jeremy]

1 hour ago, Fex Bluse said:

I'm happy they are hurting. 

 

Pain is the only way the country will improve. 

Love it, karma is a bitch!????????????????????????????????????????????????????????

[mikebell]

6 hours ago, webfact said:

can pose a risk to Thai exports in the next five years.

Too late.  Every Chinese tourist welcomed and feted here is a potential foreign invader.  Be careful what you wished for; the colonisation of Thailand is gathering pace.  Soon there will be no difference between Pattaya and Sihanoukville Hun Sen & Uncle Tu are cast from the same mould.

[PatOngo]

1 hour ago, Isaan Alan said:

Unfortunately the rich are exempt from pain and the pain burden will fall on the middle and poorer classes

AKA...the majority!

[RichardColeman]

Asking to export more at a time of a ridiculously high baht will be about as successful as the yearly reduce road death drive

[Isaan sailor]

Look at the big picture: Prayut ChaCha has fallen into China’s economic trap.  He has let hot money rule and jacked up the Baht.  In return, China promises bullet trains, sells submarines, and sends millions of mid to low income tourists here.

China wins.  Thailand loses.

[holy cow cm]

As the big guy parades around shaking hands like a peacock with all dignitaries, country leaders and even the likes of a controversial guy like many consider the Pope, and as his head grows and swoons, his country continues to plummet into the abyss. But hey, he and his cronies have a plan: increase by a handshake trade with S Korea, try to sell more amazing Thailand holiday dreams to India and bring back the Chinese campaign, ostracize the expats and non Asian foreigners, all the while ignoring that the economy is plummeting, factories are closing and all the while as China gets a bigger step in here starting to take control. A friend of mine (Thai) owns a hotel in Bangkok and just yesterday was crying that it is so hard to keep business going now because of the tourist drop and their capacity has literally dropped to just keeping it afloat. Truth is they are subsidizing it at a loss. Asked me what the remedy is and why it is happening and all I could say for the remedy and for the why only can point to one direction for the answer being the who just won the election fair and square and how to change this matter. As for the elite, not phased one bit. As for China, they are digging into every SE Asian country as the sales are just too big to ignore. But beware for what you reap, because that is from what you sow. The strong baht and immigration controls are hurting this country super hard now. 

[30la]

Don't try to oppose China, we talk about the strongest nation in the world and also the one that offers the most for low prices!
You missed the train many years ago because it was more important for you to copy foreign products and sell them as originals!
China copies much more than you've ever copied, but they sell everything under their brand!

[Expat Brad]

5 hours ago, Isaan Alan said:

Unfortunately the rich are exempt from pain and the pain burden will fall on the middle and poorer classes

Yes!!! But, that might be the only way to get Thai people to make a stand against the one's causing their pain and suffering!!! ????

[happy chappie]

As I've said many times.thailand is a pawn in China's game.its just a stepping stone of the domination they will have in the future.

theres no way to stop them,the only man to stand up to them is trump.i call him the last man standing because he is.the rest just bow to them and as for cha cha cha it's all lips and butt.

[Srikcir]

7 hours ago, Fex Bluse said:

This is what happens when you 

The Chinese money trap

7. As per Thailand-China trade agreement, China can use yuan instead of baht.

8. Thai companies in joint ventures with China state-owned companies that provide project financing for Thailand infrastructure built in part with Chinese professionals.

9. Thailand government borrows from China to build infrastructure such as roads, light rail and high speed rail.

Good for Chinese short-term GDP growth, high risk for any Thailand GDP growth.

[Redline]

Well, I thought China was going to be the savior for Thailand ???? I was just wondering about the numbers yesterday-here they are, and they will be getting much worse.  Thailand only needs China syndrome will backfire spectacularly.  China only needs to the thai market to pawn off their goods, and take agricultural land