KBank Subsidiaries and ASEAN Economic Strategy slide image

KBank Subsidiaries and ASEAN Economic Strategy

K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Challenges: Exports Export is expected to mediocre in 2020 amid global trade uncertainties and transitions to structural changes Short-term Challenges Key Structural Problems Key Affected Products Short-term Measures from Authorities and Related Parties Long-term Measures from Authorities and Related Parties ■Faltering global demand ■THB appreciation Exports ■ US trade policy, e.g. measures to reduce trade deficit from 16 major countries ■Trade uncertainties ■High dependence on China's market ■Changing demand in electronic products and loss of competitiveness in some areas (e.g., HDD) ■High crop surplus among competitors ■Electronics and Electrical Appliances (Structural Challenge) ■Fishery and Agriculture Products (US SIMP) ■Steel and Aluminum, Washing machine (US tariffs) ■Plastic, ICs, Machinery and Electrical Equipment (US-China's trade dispute) ■ Extending products to catch up with changing consumer trends ■ Enhancing practices to comply with international standards ■Setting up export promotion board ■ Providing supports to help individuals gain skills and qualifications relevant to the needs of the labour market ■Negotiating FTA and regional trade agreements ■Relocating factories to GSP eligible countries ■Promoting BOI's privileges which grant merit based on competitiveness enhancements ■ Enhancing productivity Note: HDD Hard Disk Drive; IUU fishing = Illegal Unreported and Unregulated fishing; FTA = Free Trade Area; GSP = Generalized System of Preferences; BOI = the Board of Investment of Thailand Source: KResearch (as of April 2019) บริการทุกระดับประทับใจ 173 K KASIKORNTHAI Impacts of US-China trade dispute China's exports to US subject to tariffs ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK USD 50 bn US imposes tariffs on Chinese goods % tariff rates on Chinese 25% (List 1,2) goods to US Postponed until further notice USD 200 bn 25% (List 3) USD 120 bn USD 160 bn 7.5% (List 4A) (Feb 2020) Thai exports lost USD1.1bn during 2018-2019 or 0.1% of annual GDP Thai exports to US to Thai exports to China + + to replace US goods replace Chinese goods Thai exports to US (USDbn) Thai exports to China China to dominate CLMV as Thailand set to lose out (USDbn) % Share of Thai goods to CLMV's import List 1: 5.8 5.0 +5.4% List 1: 1.2 +92% 2.3 Electrical appliance 3.8% 3.0% +10% List 2: 1.9 Electronic -26% 1.4 equipment 14.5 16 +10% List 3: 4.5 +73% Iron/ Aluminum List 2: 1.9 2.1 List 3: China exports to US (USDbn) List 1: 32.2 23.3 List 2: 13.9 8.9 List 3: US exports to China (USDbn) -28% List 1: 30 2.7 -36% List 2: 9.1 28 List 3: 146.5 -23% 9.9% 8.4% 5.6%) 4.8% % Share of Chinese. goods to CLMV's import Electrical -10% appliance Electronic -69% equipment Iron/ 20.0 18.5 -7% 3.3% 40% 38% 44% 42% 45% CLMV CLMV The two-year US-China trade war shaved Thai exports by USD1.1bn, although some Thai products benefited as replacements for Chinese/US products, both directly and indirectly. Volume is still not enough to cover the drop in exports to countries within China's supply chain. Moreover, Thailand lost its foothold in the markets of neighboring countries However, the trade war has eased since the 'Phase 1' US-China trade deal was signed on January 15, 2020. At present, the COVID- 19 outbreak is putting international trade in greater jeopardy The US presidential election in November has complicated the trade war situation, which is likely to be protracted. A 'Phase 2' trade deal is unlikely to materialize anytime soon. Meanwhile, the geopolitical tension is set to continue Source: USITC, Trademap.org, Ministry of Commerce 2017 Aluminum บริการทุกระดับประทับใจ 174
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