Thai exporters need to adopt a culture of innovation to raise their position in the global value chain, according to Kosit Panpiemras, the executive chairman of Bangkok Bank.
Over the past 12 years, he said, Thailand's market share of total global exports has remained steady at 1% to 1.1%, compared with 1.4% to 1.5% for neighbouring Malaysia.
''If you think positively, Thailand has done quite a good job in maintaining our position in the face of higher competition. Excluding the Middle East, we run trade deficits with only two countries, China and India,'' Mr Kosit told a seminar yesterday.
But he said Thailand needed to consider what would be the major trading markets in the future.
In 1995, the United States, Japan and Europe each accounted for 17% of Thailand's trade. But as of the first half of the year, each market's share of the total had slipped.
Exports to the United States this year represent 15.4% of total exports, down from 17.8% in 1995. The share of the EU has declined to 13.8% from 16.4% and Japan's share has fallen to 12.5% from 16.8%.
Growth has come in exports to China, now at 8.5%of the total compared with 2.9% a decade ago, while exports to Asean have remained steady at 21% of the total.
Mr Kosit said Thai businesses needed to reform to remain competitive, adjust to the forces of globalisation and adapt to changing consumer demand.
''These factors are all dynamic and changing constantly. For instance, low wages used to be our advantage. Now we are at a disadvantage when compared with China and other countries,'' he said.
Thailand's exports in the first seven months rose in value by 16.6% from the same period last year to US$71.71 billion. Authorities have set an export growth target of 17% for the year.
By- bangkokpost.com
