Overview

Exports have been the prime mover in Thailand’s drive towards prosperity. In 1972, the first year the government shifted toward export promotion as a core policy, they accounted for only 13 percent of the country’s gross domestic product. By 1987 the ratio had risen to 23 percent and by 1998 it was 50 percent.

Thailand has long been famous as an exporter of food and traditional commodities, and while their importance is still great, high technology exports have become the largest and fastest growing part of the economy. Large investments from multi-nationals have helped Thailand to become an important Southeast Asian production center for many manufacturers of computers, electronic integrated circuits, automobiles, auto parts and air conditioners. The government’s initiatives to promote foreign investments, improved business infrastructures and emerging local entrepreneurs have helped Thailand to expand beyond its traditional export patterns.

Thailand’s competitive advantages have not been ignored and the country remains a key figure in the export of many commodities and products associated with Southeast Asia. The kingdom is the No 1 rice exporter in the world and, in fact, the only net food exporter in Asia. It also leads the world in exports of tapioca, rubber, canned pineapple and frozen shrimp while being a major player in sugar, corn and poultry. A growing agro-industry sector has emerged with the emphasis on adding value to these products before they are exported.

After hard times recently, Thailand’s exports are increasing and helping to rejuvenate the economy. Export numbers uncharacteristically decreased in 1996 because of lower cost competitors such as India, China and Vietnam in low-end labor-intensive manufacturing. They decreased further in 1997 hampered by the removal of many GSP privileges. Recent figures have seen export volumes rising when measured with the devalued baht, but falling when measured in U.S dollars. Thailand’s exports increased in 1999 showing a 4 percent gain over the previous year with strong gains made in automobiles and parts, electrical circuits and plastic industries. Agricultural based products did not fare as well with low commodity prices affecting exports of rice, rubber, seafood and tapioca.