11 Jul 2005 International Economy Vietnam: Trade Partner & Rival...Beware Declining Trade Surplus คะแนนเฉลี่ย คะแนนเฉลี่ย 5 stars 4 stars 3 stars 2 stars 1 star Vietnam is Thailand's latest oil supplier in ASEAN, as it has just begun to develop its energy sources for commercial purposes only recently. In 1986, Vietnam opened the country to trade and began adopting market reforms. Currently, the country has an oil supply adequate to allow exports. Over the first five months of this year, Thailand imported USD65.8 million in crude oil from Vietnam. Oil ranks second to electrical appliances on the list of Thailand's top imports from Vietnam. Thailand has purchased a large amount of Vietnamese crude oil, causing overall Thai imports from Vietnam to rise sharply. During the first five months of this year, Thailand's imports from Vietnam topped USD306.3 million, almost doubly, year-on-year. On the contrary, Thailand's export growth to Vietnam dwindled to 18 percent during the first five months of this year, against the record high of 49 percent in 2004. The slowdown in Thai exports could be attributed to the large amount of Chinese products shipped to the Vietnamese marketplace after Vietnam recently strengthened trade ties with the Mainland. Presently, China has become Vietnam's largest source of imports, while Thailand ranks sixth on the list of top exporters to the Vietnamese market behind China, South Korea, Japan, Singapore and the US. Thailand's exports to Vietnam grew 18 percent, whereas its imports from Vietnam skyrocketed by 98 percent earlier this year. As a result, Thailand's trade surplus with Vietnam dropped by 3.9 percent to USD530.7 million over the first five months of this year. It is expected that Thailand will continue to rely on Vietnamese crude oil over the remainder of this year, while its exports to Vietnam may be sluggish. Given this, Thailand may encounter a trade deficit with Vietnam in the future, though it has always enjoyed a trade surplus with Vietnam in the past. After Vietnam opened the country to trade and began adopting market reforms over the past twenty years, its economy has developed and become prosperous and stable. Currently, Vietnam can produce products similar to those of Thailand, be they agricultural or industrial goods. Thus, Vietnam is regarded as Thailand's rival in world markets, particularly, in the US, the largest importer of both Thai and Vietnamese goods. Exports from Thailand and Vietnam to the US market account for 15 and 20 percent of the total exports from the two countries, respectively. Important and high potential exports from Vietnam (apart from crude oil) include garments and other textiles, shoes, electronic products, seafood, wooden furniture, rice, rubber and other agricultural produce such as coffee, tea, pepper, cashew nuts, etc. Vietnam has the ability to export many types of goods that are so similar to Thailand's that it has become a rival. KRC therefore holds the view that Thailand and Vietnam should develop a relationship of being 'economic partners' rather than 'rivals' for mutual benefit by encouraging closer economic cooperation in aspects such as: Export allies for agricultural produce ? particularly rice and rubber. Strengthening cooperation will help maintain the stability of rice and rubber prices in the world market, which would be advantageous to Thailand and Vietnam, as well as other rice and rubber exporting countries. Develop border economic zones Although Thailand and Vietnam do not share a common border, transportation routes between the two countries can be linked via through Laos using highways 9 and 12. These routes are expected to help invigorate the economies of the three countries because they through rapid, convenient and cheaper transportation. Liberalize cross-border tourism Softening the rules and regulations for cross-border travel between Thailand-Laos-Vietnam is expected to help stimulate cross-border tourism among the three countries. It is forecast that the Thai and Vietnamese authorities could permit tourists to drive across borders soon. Joint investments with Vietnam Vietnam is a newly-opened economy and potential investment locale that is not too far from Thailand. Moreover, the Vietnamese authorities have instituted tax promotions such as collecting import tariffs on Chinese raw materials that are lower than Thailand's, plus Vietnam has rather low wage scales. If Thai businessmen can adjust, learn and understand the market in Vietnam, it could make Thai businesses successful in expanding there. Annotation This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow. International Economy Vietnam Related Analysis View all 14 Mar 2018 International Economy Thailand must brace for trade disputes between the US, EU and China, etc. (Current Issue No. 2905) The US is pressing ahead with trade measures against trade partners globally. In addition to their new ‘safeguard tariffs’ on imported solar panels and large washing machines imposed early in 2018, and more recently on imported steel and aluminum, the US is now preparing to implement protectionist measures against Chinese products valued at around USD60 billion. This direction will likely add significant pressure to global trade, thus, KResearch views that all eyes should be closely kept on negotiations between the US and EU, both being among the largest economies in the world. Details on those negotiations are expected to be released before the relevant ‘safeguard tariffs’ on steel and aluminum become effective at the end of next week. If the EU and China are exempted from these new tariffs, prevailing anxiety will ease. But to the contrary, without such exemptions, China and the EU may opt to implement their own trade protectionist measures against the US, as well. 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Read more 373.51 KB 373.51 KB 19 Dec 2017 International Economy Chinese Economy Continues Momentum to Yearend Growth next year inches toward balance, Focus on Reforms (Business Brief No.3719) China's latest economic indicators show that the Chinese economy has maintained momentum. Although China’s domestic eco... Read more 0 KB 0 KB View all