Exports extend gains amid recovery

Pimchanok Vonkorpon, director-general of the Commerce Ministry’s Trade Policy and Strategy Office, said that last month imports also jumped - by 13.7 per cent year on year to $18.36 billion – but that still left Thailand with a trade surplus of $1.92 billion. 
In the second quarter of this year, outbound shipments sped up 10.9 per cent on year, the fastest in 17 quarters, she said. The first quarter’s growth rate was 4.9 per cent on year.
In the first six months, exports rose 7.83 per cent on year, a six-year high, to $113.55 billion. 
Given the 15 per cent increase in imports, year on year, to $106.58 billion, the country’s trade produced a surplus of $6.97 billion for the half year.
In June, the agricultural and agri-industry export category rallied for an eighth month, rising 18.3 per cent on year. 
Among products in the group, sugar soared by 36 per cent, rice by 34.4 per cent and rubber by 27.2 per cent. 
Uptrending for the fourth month, manufacturing exports jumped 11.6 per cent on year. 
Among them, plastic products led the offensive, skyrocketing 49.2 per cent, followed by rubber products’ 43.7-per-cent advance and computers and peripherals’ 18.9-per-cent improvement.
Pimchanok also cited rises in nearly all export destinations particularly China, Japan, five Asean countries and the CLMV nations (Cambodia, Laos, Myanmar and Vietnam) for June’s overall positive performance. 

Chinese demand
In the month, exports surged 29.9 per cent on year to China, 26.5 per cent to Japan, 24.6 per cent to the five Asean countries and 13.8 per cent to CLMV.
For the rest of this year, exports are forecast to continue their upward spiral on the back of likely improved global economic factors and expansion in Thailand’s trading partners.
Global crude prices are also staying higher than last year, which could boost the prices of agricultural products and other related goods.
She expressed confidence in hitting this year’s export growth target of 5 per cent.
“If Thai exports average $18.77 billion a month, this whole-year target will be reached and if the export figure reaches $19.13 billion, this year’s Thai exports will grow as much as 6 per cent,” she said. 
However, forward risks were the uncertain US trade policy and the SU Federal Reserve’s benchmark-rate hikes, which could lead to exchange rate volatility.
Regarding the United States targeting countries including Thailand with which it has the largest trade deficits, she said Thailand is preparing additional information involving intellectual property for the US, which is now under consideration.
The strengthening of the country’s currency was also a concern.
“We’re keeping a watch on the appreciating baht. Meanwhile, the Bank of Thailand and Ministry of Finance have been monitoring it closely,” she said.
“We conceded that the baht’s appreciation could have some adverse impacts on agricultural products with high content of imported raw materials.”