Thai economy put at risk by surge in zero-dollar exports

The government is being urged to address zero-dollar exports and investments from China, as they are expected to intensify due to the US tariff measures.

- SOMRUEDI BANCHONGDUANG

The US reciprocal tariffs, both universal and those targeting Thailand, are likely to exacerbate the global decoupling between the US and China. With rising geopolitical risks, this will increase competition in global trade and investment, said Amonthep Chawla, chief economist at CIMB Thai Bank (CIMBT) Economic Centre.

The US tariffs will also affect the movement of production bases, with Southeast Asia and Thailand likely to be key destinations for foreign direct investment (FDI) worldwide, he said.

Thailand will likely serve as a manufacturing base for both domestic sales and exports for overseas investors, said Mr Amonthep.

“Despite the positive outlook for FDI flows to Thailand, the country faces challenges related to zero-dollar investments and exports, particularly from Chinese investors,’ he said.

“This issue has been ongoing in Thailand and is expected to worsen given the heightened geopolitical risks.”