Thailand unveils three-balance strategy to spread export gains to SMEs and farmers

Thailand’s exports expanded strongly in July, but the government says the benefits must be distributed more widely among small and medium-sized enterprises, farmers and workers.

Exports rose by 21.6% year on year in July 2026, marking the 25th consecutive month of growth, while shipments during the first seven months of the year increased by 18.2%, deputy government spokesperson Lalida Periswiwatana said on Wednesday.

Much of the expansion was driven by industrial and advanced-technology products, raising concerns that export growth has yet to generate equally strong gains across the domestic economy.

Thailand has more than 30,000 exporters, of which over 22,000, or about 73%, are SMEs. However, these businesses account for only 14% of the country’s total export value.

The government is therefore pursuing a “three-balance” strategy covering markets, products and income distribution.

Diversifying export markets

The first element, “market balance”, seeks to reduce Thailand’s dependence on its main trading partners by expanding into new markets with strong potential.

The government plans to focus particularly on food, healthcare products and high-value goods. A broader market base is expected to help exporters manage risks arising from economic volatility and geopolitical tensions.

The policy is also intended to provide Thai businesses with more opportunities to enter markets beyond the country’s traditional export destinations.

Raising domestic value creation

The second element, “product balance”, aims to increase the proportion of export value generated within Thailand.

The government plans to connect foreign investment and major manufacturing operations more closely with Thai raw materials, components, SMEs, workers and technology.

It also wants agricultural and food producers to move beyond exporting raw materials by investing in processing, standards, branding and Thai-developed technology.

Increasing local content would allow more export revenue to circulate through the domestic economy while reducing dependence on imported production inputs.

Connecting SMEs with major supply chains

The third element, “income balance”, focuses on distributing the benefits of trade more widely, particularly among SMEs, farmers and small businesses.

The government plans to address barriers involving access to finance, product standards, technology, market information, logistics and distribution channels.

It will also seek to connect SMEs with the supply chains of major exporters and foreign investors, potentially giving smaller businesses access to larger markets and more stable commercial opportunities.

“The government’s goal is not merely for Thailand to export more, but for Thai people to benefit more from exports,” Lalida said.

She said the strategy would seek to create more jobs, income and business opportunities by opening new markets, increasing domestic value and distributing trade-related income more broadly.

Source: Bangkokbiznews