Thai rubber industry gets 2 billion baht boost to increase global competitiveness
The Thai Finance Ministry has joined forces with the Thai Chamber of Commerce, and the Rubber Authority of Thailand to launch the Capital Flow in Rubber Industrial Estate project, aimed at enhancing the competitiveness of businesses in the rubber supply chain on a global scale.
The rubber and rubber product exports amount to over 680 billion baht annually, with more than 6 million people participating in the supply chain, from upstream to downstream sectors, including farmers.
This collaborative effort, involving the Thai Chamber of Commerce, the Thai Board of Trade, the Rubber Authority of Thailand, the Thai National Shippers’ Council (TNSC), and the Thai Credit Guarantee Corporation, is designed to provide access to capital for entrepreneurs, particularly small and medium-sized enterprises in the Thai rubber industry.
Finance Minister Arkhom Termpittayapaisith announced that the 2023 budget allocation of 2 billion baht is expected to enhance the value of rubber and rubber products, paving the way for Thai rubber to expand its global market share.
The agreement, which includes companies such as Thai Hua Rubber and Construction Products Co Ltd, will contribute to the added value of Thai rubber, particularly in terms of rubber waste utilisation, according to Arkhom.
TNSC Chairman Chaichan Charoensuk revealed that Thailand exported 500,000 tonnes of raw rubber and rubber products last year, while domestic sales reached approximately 1 million tonnes.
Thai rubber exports are predicted to grow by around 5% this year, despite shipment contractions in other industries such as electronic components, plastic resin, textiles, and chemicals due to weakening global demand.
Chaichan said…
“Even as consumers shift from conventional cars to electric vehicles, there is still demand for rubber as tyres are needed.”
The Commerce Ministry has indicated that Thailand is the world’s leading rubber exporter and ranks fourth in rubber product exports.
In 2021, Thailand’s rubber and rubber product exports totalled US$20 billion, representing a 28.3% increase from the previous year. The main export markets include the US, China, Malaysia, Japan, and South Korea, reported Bangkok Post.
