Thai exports hurt as baht strengthens

Bangkok (VNA) – The Thailand 's Commerce Industry has warned the strengthening baht will affect high-value industrial products with few imported raw materials such as rubber products, canned and processed seafood, gems and jewelry.

Poonpong Naiyanapakorn, director general of the Trade Policy and Strategy Office (TPSO), affirmed the baht surged to 32-33 baht per USD compared with 35-36 baht per USD last December.

Poonpong said although the extent of the impact of the baht appreciation on export performance is not on par with the effect of a weakening global economy and economic slowdown in key trading partners, a strong baht directly affects the competitiveness of Thai products, making them more expensive than those of other exporting countries.

The export value is also subject to a reduction once converted from the US dollar, resulting in a decline in revenue or profits for exporters.

However, the baht’s gain positively affects imports, particularly of energy, capital goods, raw materials and semi-finished goods. Semi-finished goods account for 83.8% of total imports and a more robust baht reduces the costs of such imported products to make finished products for re-export.

Outbound shipments of beauty and personal care products tallied 3.25 billion USD in 2022, up 6.6% from a year earlier. Key export markets include Japan, the Philippines, Vietnam , Australia and China./.

VNA