Trade exhibition outlook to hinge on economic progress

Trade exhibitions in Thailand this year are expected to grow at the same slow pace as the country’s GDP, while the large US tariff rate for transshipment of Chinese products has begun to impact manufacturers in that nation, who are refraining from hosting trade events in Southeast Asia.

- NARUMON KASEMSUK

Loy Joon How, president of the Thai Exhibition Association (TEA), said trade exhibitions are typically regarded as a mirror of the economy.

If GDP growth remains healthy, trade exhibitions will expand as buyers and sellers seek marketplaces to grow their businesses, he said.

Mr Loy said US reciprocal tariffs are disrupting global trade, especially hiking the transshipment tax to 40% on products originating from China and exported via other countries.

He said the exhibition market in Asia is largely driven by China, the largest market with a growth rate of more than 55%, followed by Japan, South Korea and Hong Kong. Thailand ranks seventh in Asia.

This year fewer Chinese exhibitors have joined events in Southeast Asia due to unfavourable tariff rates.

The sector needs to rethink its strategies to support a market fragmented because of the US tariff policy, said Mr Loy, who is also general manager of Impact Muang Thong Thani.