Thai government aims to boost cross-border trade despite 2023 contraction
The Thai government is aiming to reinvigorate its cross-border trade, including transit trade, this year following a 2.6% contraction in 2023, which saw the value fall to 1.7 trillion baht (US$48 billion). The Foreign Trade Department’s director-general, Ronnarong Phoolpipat, stated that the Commerce Ministry would expedite cross-border and transit trade according to the government’s investment promotion strategy for 2024-27.
To facilitate this, they will partner with pertinent state agencies to stimulate cross-border and transit trade – a process that involves the movement of goods through multiple countries. This will be achieved by establishing one-stop service (OSS) centres and integrating export-import documentation through the National Single Window system to streamline trade operations, Ronnarong said.
“In 2023, the ministry opened OSS centres in eight provinces comprising Chiang Rai, Tak, Trat, Songkhla, Nong Khai, Nakhon Phanom, Mukdahan and Udon Thani. Moreover, Commerce Ministry Phumtham Wechayachai directed the ministry and related agencies to speed up efforts on all fronts to expand trade and investment.”
Cross-border and transit trade in 2023 totalled 1.74 trillion baht, a 2.6% drop from the previous year, with exports accounting for 981 billion baht (US$27.79 billion), a decrease of 4.6%, and imports amounting to 762 billion baht (US$21.59 billion), marking a 0.2% increase. Thailand maintained a trade surplus of 219 billion baht for the year, reported Bangkok Post.
“In 2023, despite a slowdown in cross-border trade with neighbouring countries attributed to economic challenges such as high inflation and weak currency exchange rates in Laos, ongoing conflict in Myanmar and subdued consumer demand in Cambodia, transit trade expanded for both total value and exports.
“For transit trade with China, which accounts for 52% of Thailand’s transit trade, the total value increased by 44.1% to 423 billion baht and exports rose by 35.4% to 214 billion baht.”
He highlighted fresh durian, hard disk drives, and processed wood as key exports to China, with the main checkpoints for these exports being Mukdahan, Nakhon Phanom and Chiang Khong for durian, and Sadao and Padang Besar for hard disk drives and processed wood.
