China is an important strategic partner of Thailand. In terms of investment, trade and tourism, China plays an important role in Thailand’s economy. After China reopened, Thailand Board of Investment (BOI) quickly led a team to visit China , to discuss economic cooperation issues in various fields. Chinese entrepreneurs have also established close ties with Thailand in the high-tech industry, new energy smart car industry and other fields. During the May Day holiday, the number of Chinese tourists traveling to Thailand surged, which also revitalized Thailand’s tourism industry and injected momentum into Thailand’s economic recovery.
In the ASEAN region, Thailand is the second largest exporter and importer after Singapore, with an average market share of 16%-19%. Thailand’s foreign trade plays a vital role in the country’s economic development, with exports and imports of goods contributing an average of 55% and 47% to GDP, respectively. According to the data from the Ministry of Commerce of Thailand, the export value in March 2023 was 27.6544 billion US dollars, a decrease of 4.2%. 24.9355 billion U.S. dollars, a decrease of 7.1%, and an import and export surplus of 2.7188 billion U.S. dollars. This is also the first time that Thailand has a trade surplus in 12 months.
Table 1 Automobile production in ASEAN countries from January to March 2023 (units)
Due to the improvement in the supply of chips and other components, entering 2023, the automobile industry in ASEAN countries will improve compared with before the epidemic, and automobile production will increase. As an important automobile producing country in ASEAN, Thailand’s automobile production in March was 179,848, a year-on-year increase of 4.2%. The cumulative output in the first quarter reached 507,787, a year-on-year increase of 5.8%, stabilizing its status as a major country in the ASEAN automobile industry. The increase in automobile production will further increase the demand for polyurethane materials used in parts such as car seats. Propylene oxide (PO) is a commonly used chemical raw material that can be used in different industries, such as insulation materials, furniture, elastomers, adhesives, and coatings. At the same time, it is also an important raw material for soft foam polyether, and the degree of attachment of soft foam polyether to it is relatively high (about 90%). There are two PO manufacturers in Thailand, Dow Chemical and PTTGC, with annual production capacity of 390,000 tons/year and 200,000 tons/year respectively. The propylene oxide produced is not only used locally, but also exported to China, India, the Netherlands, Malaysia and other places. In the first three months of 2023, the volume of PO exported from Thailand to China performed well except in January. Exports showed a downward trend in February and March. In the first quarter, Thailand’s PO exported to China fell by 20.7% year-on-year.
Figure 1 PO volume exported from Thailand to China (tons)
2023 In April 2019, Thailand’s consumer confidence index was 53.5, higher than the previous The month’s 52.3 was up, the highest level since December 2022, and also The highest value in 52 months since January 2019, the consumer confidence index is expected to remain at a high level in the coming months. In addition, according to the latest data released by the National Bureau of Statistics of Thailand, the number of employed people in February rose and the unemployment rate fell to the lowest level in four years. Based on the above performance, Thailand’s economic recovery after the epidemic has released a good signal.
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