Latest news with #PichaiNaripthaphan
The Star
3 days ago
- Business
- The Star
Thai exports soar most in three years as tariff talks begin
BANGKOK: Thailand's exports surged the most since early 2022 as companies rushed to stockpile goods while the Trump administration's planned tariffs are still on hold. Shipments jumped 18.4% to a record US$31 billion in May, Commerce Minister Pichai Naripthaphan told reporters in Bangkok on Wednesday (June 18). That was the biggest gain in exports since March 2022 and the fifth straight month of double-digit gains. Imports rose 18% to $29.9 billion last month, allowing Thailand to post a trade surplus of $1.1 billion, ministry data showed. The nation had a trade surplus of $4.6 billion with the US and a trade deficit of $4.1 billion with China in May. The Thai trade performance aligns with data showing a surge in Chinese exports to South-East Asia. According to Nomura Holdings Plc, this may be a sign of China rerouting its goods to other countries, particularly Thailand and Vietnam, in a bid to avoid higher US tariffs. To clamp down on the practice, Nomura estimates the US may raise its average tariff for South-East Asian countries to 15.5% from the current 10% baseline. Thailand, which has been threatened with a 36% tariff, has begun its much-delayed talks with the US this week to negotiate down the levy. Permanent Secretary for Commerce Vuttikrai Leewiraphan said on Wednesday that Thailand's proposals are good and stand a chance to bring down the tariff to the 10% baseline. The official proposal will be submitted to Washington on Friday after working-level talks this week, he added. The US was Thailand's largest export market last year, accounting for nearly a fifth of the country's total outbound shipments. The nation had a trade surplus of about $46 billion with Washington last year. The outlook for exports in the second half will depend on the outcome of tariff negotiations with the US, the Commerce Ministry said, adding it continues to monitor the impact of unrest in the Middle East and Thai-Cambodian border tension on trade. - Bloomberg
Business Times
3 days ago
- Business
- Business Times
Thai May export growth beats forecast with fastest pace in more than three years
[BANGKOK] Thailand's exports rose by their fastest annual rate in more than three years in May, beating expectations after shipments to the United States soared, and the commerce minister said on Wednesday (Jun 18) that they would continue to perform well in 2025. May exports jumped 18.4 per cent from a year earlier to a record US$31 billion, compared with a forecast year-on-year increase of 6.7 per cent in a Reuters poll. The surge in exports, a key driver of the Thai economy, was driven by accelerated shipments ahead of the expiry of a US tariff pause in early July, the ministry said. In the first five months of 2025, exports rose 14.9 per cent from a year earlier. 'We hope export growth will exceed 10 per cent this year,' Commerce Minister Pichai Naripthaphan told a news conference, saying that the weaker baht would further support shipments. He said exports will be 'a hero' for the economy this year, and that he expected upcoming trade talks with the United States to go well. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'We have started negotiations. I believe that in the end, we will be able to end it well,' he said. Thailand faces a 36 per cent US tariff on its exports if a reduction cannot be negotiated before the moratorium expires in July. The US has imposed a 10 per cent tariff for most nations while the moratorium is in place. On Monday, Pichai said both countries could agree on good terms with tariffs, possibly as low as 10 per cent. In May, exports to the United States, Thailand's biggest market, jumped 35 per cent from a year earlier, while shipments to China rose 28 per cent. Exports of computers and parts surged 104 per cent in May from a year earlier, while shipments of agricultural goods rose 6.8 per cent. Rice export volumes dropped 0.2 per cent on the year. Last month, imports increased 18 per cent from a year earlier, beating a forecast rise of 13.1 per cent, which led to a trade surplus of US$1.12 billion for the month. REUTERS
Bloomberg
3 days ago
- Business
- Bloomberg
Thai Exports Soar By Most in Three Years Ahead of US Tariffs
Thailand's exports surged the most since early 2022 as companies rushed to stockpile goods while the Trump administration's planned tariffs are still on hold. Shipments jumped 18.4% to a record $31 billion in May, Commerce Minister Pichai Naripthaphan told reporters in Bangkok on Wednesday. That was the biggest gain in exports since March 2022 and the fifth straight month of double-digit gains.
Reuters
3 days ago
- Business
- Reuters
Thai May export growth beats forecast with fastest pace in more than 3 years
BANGKOK, June 18 (Reuters) - Thailand's exports rose by their fastest annual rate in more than three years in May, beating expectations after shipments to the United States soared, and the commerce minister said on Wednesday that they would continue to perform well in 2025. May exports (THCEX=ECI), opens new tab jumped 18.4% from a year earlier to a record $31 billion, compared with a forecast year-on-year increase of 6.7% in a Reuters poll. The surge in exports, a key driver of the Thai economy, was driven by accelerated shipments ahead of the expiry of a U.S. tariff pause in early July, the ministry said in a statement. In the first five months of 2025, exports rose 14.9% from a year earlier. "We hope export growth will exceed 10% this year," Commerce Minister Pichai Naripthaphan told a news conference, saying that the weaker baht would further support shipments. He said exports will be "a hero" for the economy this year, and that he expected upcoming trade talks with the United States to go well. "We have started negotiations. I believe that in the end, we will be able to end it well," he said. Thailand faces a 36% U.S. tariff on its exports if a reduction can't be negotiated before the moratorium expires in July. The U.S. has imposed a 10% tariff for most nations while the moratorium is in place. On Monday, Pichai said both countries could agree on good terms with tariffs, possibly as low as 10%. In May, exports to the United States, Thailand's biggest market, jumped 35% from a year earlier, while shipments to China rose 28%. Exports of computers and parts surged 104% in May from a year earlier, while shipments of agricultural goods rose 6.8%. Rice export volumes dropped 0.2% on the year. Last month, imports (THCIM=ECI), opens new tab increased 18% from a year earlier, beating a forecast rise of 13.1%, which led to a trade surplus (THCTR=ECI), opens new tab of $1.12 billion for the month.
Yomiuri Shimbun
5 days ago
- Business
- Yomiuri Shimbun
Vietnam, Thailand Aim to Grow Rice Exports to Japan
The Yomiuri Shimbun Packets of Thailand-grown japonica rice are displayed alongside those imported from Japan in a supermarket in Bangkok. BANGKOK — Vietnam and Thailand, which are among the world's top three rice exporters, are expecting an increase in their exports of rice to Japan. In both countries, production of japonica rice, which is the same short-grain variety as that produced in Japan, has been expanding amid a boom in washoku Japanese cuisine. The countries aim to turn the surging rice prices in Japan into a business opportunity. In a supermarket in Bangkok that is part of the Tops group, a major retail chain in Thailand, five-kilogram packs of japonica rice produced in the country were sold for 275 baht (about ¥1,200). The price is much lower than that in Japan. In other Japanese supermarkets in Thailand, Sasanishiki and other Japanese-brand rice, harvested in Thailand, were being sold at similar prices. The climate in Thailand is warm all year round and thus rice can thrive there. Though the main variety grown is indica long-grain rice, recently an increasing number of farmers have begun growing the japonica variety. A 44-year-old farmer who has grown the Koshihikari brand of rice from Japan for a year said that he can sell japonica rice at double the price of Thailand's indica rice and his profit margin is high. In his rice paddies, it is possible to harvest rice three times a year, he said. The export value of rice from Thailand to Japan in 2024 increased 1.3-fold from 10 years ago to $183 million (about ¥26.5 billion). Currently, most of the exports are indica rice and it is assumed that much of the production of japonica rice is for Thailand's domestic market. The Thai government is paying attention to Japan's rice market situation. Thai Commerce Minister Pichai Naripthaphan said that the Thai government wants to exploit a market where Thai rice can be sold at high prices and increase rice exports. According to an estimate announced by the U.S. Agriculture Department in May, the total amount of global rice exports in fiscal 2024 was 61.4 million tons. By export volume, India was ranked top with a share of about 40%, followed by Vietnam at 13% and Thailand at 11%. On June 5, the Vietnam Rice Industry Association (VIETRISA) exported for the first time 500 tons of rice of a new brand, 'Low-emission Green Vietnamese Rice' of the japonica variety. Its selling point is that greenhouse gases emitted during its growth can be reduced. The new brand of rice was cultivated with an eye on sales in Japan, where consumers are environmentally conscious and quality standards are strict. VIETRISA Chairman Bui Ba Bong said that Japan's current rice shortage is a good opportunity for Vietnam-made rice to enter the high-end market. VIETRISA aims to continuously supply rice to the Japanese market. When Japan imports rice, a tariff of ¥341 per kilogram is imposed on amounts exceeding a tariff-free quota called 'minimum access.' But Japanese companies, mainly trading firms, have increased rice imports because the prices are lower than domestically produced rice even after the tariff is added. The volume of rice exported from Taiwan to Japan reached 7,759 tons between January and May, up more than six-fold from the corresponding period last year. Taiwan-produced rice is similar in taste and growing techniques to Japan-produced rice. Going forward, it is possible that rice imports from Southeast Asia will also increase. However, if price gaps between imported rice and domestically grown rice widen, it may negatively impact Japanese rice farmers. The possibility will likely stir up controversy.
