Thai exports to exceeded Thailand’s imports from North America by $11.3 billion in 2014. Similarly, Thailand achieved a $4.2 billion trading surplus with African nations and had a positive balance of $1.7 billion versus Latin American countries (excluding Mexico) and the Caribbean.
The fact that Thailand earns these country-specific trade surpluses indicates Thai competitive advantages [albeit] for a specific set of export products highlighted below.
These major product supply advantages provide a silver lining for the grim fact that Thailand carried approaching a half-billion-dollar trade deficit during 2014 and in contrast to China’s $384.3 billion trade surplus.
Thailand’s trade deficit in 2014 has skyrocketed since 2010 when it earned a positive balance of $12.9 billion.
Thailand Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Thailand earned the highest trade surpluses in 2014.
- Vehicles : US$17.7 billion (22.6% of all product surpluses)
- Rubber, rubber articles: $12 billion (15.3%)
- Machinery: $8.9 billion (11.4%)
- Meat/seafood preparations: $6.3 billion (8.1%)
- Plastics, plastic articles: $5.3 billion (6.8%)
- Cereals: $5.2 billion (6.7%)
- Sugar, sugar confectionery: $2.8 billion (3.6%)
- Vegetable/fruit preparations: $1.8 billion (2.4%)
- Wood: $1.7 billion (2.1%)
- Knit or crochet clothing, accessories: $1.6 billion (2%)
The above top 10 product categories represent 80.9% of Thailand’s overall product-category surplus subtotal which amounted to $63.4 billion. For that subtotal, 46 of Thailand’s 97 general product categories delivered a surplus in 2014 while the remaining 51 categories incurred deficits.
Growth
Thailand enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Meat: Up 1,163% since 2010 (US$528.4 million)
- Miscellaneous manufactured articles:Up 1,108% ($267.9 million)
- Stone, plaster, cement: Up 239.3% ($144.2 million)
- Fruits, nuts: Up 200% ($405.9 million)
- Beverages, spirits, vinegar:Up 167% ($857.9 million)
- Plastics, plastic articles: Up 127.8% ($5.3 billion)
- Ceramic products: Up 126.9% (-$72.8 million)
- Animal/vegetable fats, oils: Up 81.1% ($538.9 million)
- Other base metal goods: Up 75.2% ($259.2 million)
- Milling products: Up 69.6% ($1.2 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Thailand to achieve the highest surpluses in its international trade with other countries.
- Trucks: US$10.1 billion
- Computers, optical readers: $8.6 billion
- Natural rubber: $6 billion
- Rice: $5.4 billion
- Cars: $5.2 billion
- Air conditioners: $4.3 billion
- Processed petroleum oils: $4.2 billion
- Ethylene polymers: $3.5 billion
- Jewelry: $3.3 billion
- Rubber tires (new): $3.2 billion
- Fish, caviar (preserved/prepared): $2.9 billion
- Sugar (cane or beet): $2.7 billion
- Miscellaneous meat (preserved/prepared): $2.1 billion
- Refrigerators, freezers: $1.6 billion
- Cyclic hydrocarbons: $1.6 billion
Among these, ethylene polymers had the fastest-growing Thai surplus with a 187% gain since 2010. In second place were cyclic hydrocarbons up 105.5% while exported trucks moved ahead in value by 78.5%.
Thailand Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Thailand earned the highest trade surpluses in 2014.
- Hong Kong: US$11.4 billion (16.6% of Thai country-specific surpluses)
- United States: $9.3 billion (13.5%)
- Vietnam: $4 billion (5.7%)
- Cambodia: $3.9 billion (5.7%)
- Australia: $3.9 billion (5.6%)
- Netherlands: $3.6 billion (5.2%)
- Philippines: $3.3 billion (4.7%)
- Laos: $2.6 billion (3.8%)
- Singapore: $2.6 billion (3.7%)
- India: $2.6 billion (3.7%)
The above 10 trade partners represent 68.3% of Thailand’s subtotal surplus of $68.9 billion from the 160 geographic entities with which Thailand demonstrated competitive trade advantages. That subtotal excludes the 63 geographic entities with which Thailand incurred trade deficits.
Growth
Thailand enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Eritrea: Up 5,799% since 2010 (US$13.4 million)
- Lesotho: Up 2,821% ($1.2 million)
- Democratic Rep. Congo: Up 1,478% ($7.7 million)
- North Korea: Up 960% ($88.2 million)
- Ireland: Up 957.5% ($78.5 million)
- Christmas Islands: Up 750% ($17,000)
- Timor-Leste: Up 656.1% ($66 million)
- Guinea: Up 627.9% ($62 million)
- Kazakhstan: Up 578% ($54.9 million)
- Somalia: Up 437.4% ($23.5 million)
From the above list, Thailand showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts.
Hong Kong
Below are the products that gave Thailand the highest surpluses in its international trade with Hong Kong.
- Computers, optical readers: US$2.5 billion (22% of Thailand’s surplus vs. Hong Kong)
- Integrated circuits/microassemblies: $2.2 billion (19.5%)
- Computer parts, accessories: $716 million (6.3%)
- Gold (unwrought): $625.1 million (5.5%)
- Jewelry: $572.6 million (5%)
- Diamonds (unmounted/unset): $556.7 million (4.9%)
- Precious/semi-precious stones (unstrung): $345.8 million (3%)
- Miscellaneous fruits (fresh): $237.9 million (2.1%)
- Solar power diodes/semi-conductors: $210 million (1.8%)
- Liquid crystal/laser/optical tools: $208.6 million (1.8%)
Among these, miscellaneous fresh fruits had the fastest-growing Thai surplus with Hong Kong posting a 123.1% gain from 2010 to 2014. In second place were solar power diodes and semi-conductors up 64.6% followed by unmounted or unset diamonds ahead by 57.1%.
US
Below are the products that gave Thailand the highest surpluses in its international trade with the United States.
- Computers, optical readers: US$3.2 billion (34.2% of Thailand’s surplus versus US)
- Jewelry: $1 billion (10.8%)
- Phone system devices: $883.1 million (9.5%)
- Rubber tires (new): $800.3 million (8.6%)
- TV receivers/monitors/projectors: $794 million (8.5%)
- Printing machinery: $672 million (7.2%)
- Crustaceans, molluscs (preserved/prepared): $578 million (6.2%)
- Clothing, accessories (vulcanized rubber): $554.2 million (6%)
- Fish, caviar (preserved/prepared): $540.1 million (5.8%)
- Rice: $448.9 million (4.8%)
Among these, printing machinery had the fastest-growing Thai surplus with America posting a 150% gain from 2010 to 2014. In second place were phone system devices up 34.8% followed by computers and optical readers ahead by 21.4%.
Vietnam
Below are the products that gave Thailand the highest surpluses in its international trade with Vietnam.
- Processed petroleum oils: US$799.3 million (20.2% of Thailand’s surplus versus Vietnam)
- Air conditioners: $287.6 million (7.3%)
- Non-alcoholic drinks (not water/juice/milk): $256.2 million (6.5%)
- Ethylene polymers: $210.2 million (5.3%)
- Automobile parts/accessories: $204.5 million (5.2%)
- Trucks: $184.4 million (4.7%)
- Refrigerators, freezers: $176.9 million (4.5%)
- Polyacetal/ether/carbonates: $163.1 million (4.1%)
- Electrical machinery: $131.2 million (3.3%)
- Rubber tires (new): $125.2 million (3.2%)
Among these, trucks had the fastest-growing Thai surplus with Vietnam posting a 214.8% gain from 2010 to 2014. In second place were non-alcoholic drinks up 105.7% followed by air conditioners ahead by 102.7%.
See also Thailand’s Top 10 Exports, Highest Value Thai Export Products, Thailand’s Top 10 Imports and Thailand’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 13, 2015
Trade Map, International Trade Centre. Accessed on December 13, 2015
Investopedia, Net Exports Definition. Accessed on December 13, 2015