Bangkok: EXIM BANK advises empowering Thai exporters, a key mechanism to support the Thai economy.
According to Thai News Agency, EXIM BANK’s Business Research Department revealed in an article that by 2025, exports are expected to return to high growth levels and become one of the main engines driving the Thai economy. Therefore, it is important to focus on the “structural imbalance among exporters” as a warning sign that needs serious review if Thai exports are to remain competitive in the long term.
Over the past 10 years (2013-2024), an imbalance between SMEs and large corporations has been observed. Although SMEs account for nearly 80% of all exporters, they generate only 10% of the total export value. In contrast, large exporters, around 20%, control over 90% of the total export value. If large exporters experience business volatility, whether due to internal or external problems, the impact directly and continuously ripples through the entire export sector and the overall economy. Therefore, enhanci
ng the potential of SMEs to increase their value-added role is not just a supplementary policy, but a crucial condition for building a strong trade structure and effectively diversifying risk.
The imbalance among exporters persists, with only 30% able to export consistently. Analysis of data over the past 10 years reveals that out of approximately 66,000 businesses circulating within the export system, only about 30% are continuously exporting. This has resulted in limited growth among exporters, reflecting a lack of preparedness in several areas. These include essential trade knowledge, the ability to access overseas markets and buyers, and access to funding. Strengthening the capacity of exporters to ensure their continued export success is crucial.
Currently, many Thai exporters rely on only a few markets. In 2024, 45% of exporters traded with only one market, 16% with two markets, and 9% with three markets. This reflects that more than two-thirds of Thai exporters have not diversified their markets suff
iciently. Amidst the slowdown in major markets, market diversification could begin with exploring ‘new trade frontiers’ such as South Asia, the Middle East, Africa, and other growing potential markets. This would make the export sector more resilient to global economic fluctuations and reduce the risk of over-reliance on any single market.
The key to upgrading Thailand’s export sector today is not solely about expanding export value growth, but about strengthening the structural balance. In particular, it’s about enabling SMEs, which constitute the majority of the country’s business base, to grow and become high-potential exporters with a greater value-added role. This approach will not only ensure the steady progress of Thailand’s export engine, but if Thailand can balance the export sector’s structure to have a “broad, strong, and well-diversified base,” the export sector will not only recover but will also have long-term growth potential.