Topic exporting goods by thailand in the period 2015 2022suggestions to vietnam

Thailand’s main export goods 2.3.. The orientation to export in 2023 CHAPTER 3:SUGGESTION TO VIETNAM 3.1.The comparision between Thailand’s export and Vietnam’s export 3.2.The proposed s

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAMS

Major :Development Economics

Class :Development Economics 63CLC

Instructor :Associate Professor Ph.D Nguyễn Thường Lạng

GUARANTEE

I hereby declare that I have completed this assignment entirely on my own To thebest of my knowledge, the statements and materials used in the exercise have beencited, and are guaranteed to be precise to the highest degree If the assignment isnot performed as specified above, I will accept full responsibility

I want to express my gratitude to Associate Professor Dr Nguyen Thuong Lang inparticular since he helped me out in the exercise Working with you has allowed

me to continue learning and gain a wealth of knowledge that will be very helpful to

me in the future I have also had a serious and productive work spirit, both ofwhich will be essential for my career path

Finally, I could not have completed this essay without the support of my familyand friends who have always encouraged, contributed ideas and helped in theprocess of studying and researching to complete this exercise

Hanoi, February 9, 2023

Prepare by

Nguyễn Hà Phương

CHAPTER 1: THEORETICAL BASIS ON EXPORT

1.1 The concept of export

1.2.The types and role of export

1.3.The factors that affect export goods

CHAPTER 2: THE STATE OF EXPORTING GOODS BY

THAILAND IN THE PERIOD 2015-2022

2.1.Thailand’s export turnover in the period 2015-2022

2.2 Thailand’s main export goods

2.3 Thailand's major export markets

2.4.The overall assessment of Thailand’s export situation

2.5 The orientation to export in 2023

CHAPTER 3:SUGGESTION TO VIETNAM

3.1.The comparision between Thailand’s export and Vietnam’s export 3.2.The proposed solution for exporting goods by Vietnam

1.Inevitability of topic selection

Sustainable economic growth is always the top goal of each country in order tocomprehensively develop socio-economic and improve people's living standards.One of the important factors affecting economic growth is exports

Thailand has a new industrial market economy that is heavily dependent ontourism and exports, with exports accounting for about 60% of GDP It is the 2ndlargest economy in the ASEAN region (after Indonesia), 25th globally by nominalGDP, 21st in the world by purchasing power parity, and 28th in the world theworld in terms of total national brand value (statistics in 2020)

Meanwhile, Vietnam moved from a centrally planned economy to a marketeconomy and opened up to international economic integration The implementation

of industrialization and modernization in line with the Party's renovation line hasactively contributed to the initial change in the economic face of the country In

1986, Vietnam really entered the period of reform and opening up with the motto

of diversification, multilateralization, wanting to be friends with all countries….Vietnam is well aware of the importance of exports It has brought success andprosperity to many countries in East Asia and Southeast Asia such as Singapore,Malaysia and Thailand Up to now, after more than 20 years of renovation, reformand opening up, towards export, Vietnam's economy has achieved manyachievements, but there are also many challenges and difficulties that requiresolutions new approach on the basis of selective lessons learned from previouscountries

Vietnam and Thailand have some similarities in terms of economic, natural andsocial conditions Therefore, studying the export process of Thailand not only hastheoretical and practical significance, but also has an empirical reference for theexport process in Vietnam today That's why I chose the topic: "EXPORTINGGOODS BY THAILAND IN THE PERIOD 2015-2022&SUGGESTIONS TOVIETNAM" as my research content

2 The research’s goals and tasks

2.1.The research’s goals

On the basis of analyzing the current situation, assessing the results as well as theexport restrictions of products by Thailand in the period 2015-2022, thereby

proposing orientations and solutions for the commodity export market of Vietnam

in the coming years

2.2.The research tasks

To achieve the above research purpose, the research will perform the following tasks:

First, state export theories

Second, analyze the status of commodity exports by Thailand in the period of 2022-2013, draw assessments about the achieved results and shortcomings.And also show the export orientations of Thailand in the coming years

Third, from the comparisons between Thailand's exports and Vietnam's exports, I propose some solutions to improve Vietnam's exports in the coming years

3.The research’s subject and scope

3.1 Subject: export of goods by Thailand

3.2 Scope: exports of goods by Thailand for the period 2015-2022

4.The research methods

This study uses analysis, synthesis and comparison methods to solve the posed problem

Data are collected from Customs offices, General Statistics Office of Thailand and Vietnam

5 Structure of the essay

In addition to the table of contents and the list of references, the introduction, conclusion, and main content of the essay includes 3 chapters, as follows:

Chapter 1: Theoretical basis for export

Chapter 2: Thailand's commodity exports in the period 2015-2022

Chapter 3: Some experiences for Vietnam from Thailand's exports

CHAPTER 1: THEORETICAL BASIS ON EXPORT

1.1 The concept of export

Exports are goods and services that are produced in one country and sold tobuyers in another Exports, along with imports, make up international trade Exports are incredibly important to modern economies because they offerpeople and firms many more markets for their goods One of the core functions

of diplomacy and foreign policy between governments is to foster economictrade, encouraging exports and imports for the benefit of all trading parties bythe specialization of production by each country

Export agreements are often heavily strategic, with countries exchangingagreements to ensure their own country can not only receive the goods theyneed via export but can distribute goods for more domestic revenue via imports.Net exports is a component of measuring a country's gross domestic product(GDP), so exports play a factor in determining a country's financial andeconomic well-being

1.2.The types and role of export

1.2.1.The types of Exporting

When it comes to exporting, there are two main types - direct exporting andindirect exporting

Direct exporting is a type of exporting where the company directly sellsproducts to overseas customers All the deals are done directly between thecompanies without any intermediaries This way, the companies have morecontrol over the processes Direct exporting also increases profits as theintermediary is eliminated, reducing costs Direct exporting also creates astronger bond between the supplier and the buyer, and maintaining businessrelationships is crucial for business success

Despite the advantages mentioned above, direct exporting also demands moreresources from the exporting company This exporting type requires morepersonnel, resources, and time than it would if the export process were tohappen through an intermediary

Direct exporting is the best strategy for companies trying to penetrate newmarkets globally for the long term

Indirect exporting is a type of exporting practiced by companies that sellproducts to other countries with the help of an intermediary The company hasvarious intermediaries, such as foreign agents, export merchants, expertmanagement companies, etc Here, businesses have lesser control over theprocesses.

The intermediaries are present in the country producing the product They areresponsible for sending the products to the customer's country and finishing allthe paperwork, transport, and marketing The first intermediary may selldirectly to the customer or the customer's intermediary

Indirect exporting is less expensive than direct exporting It is easier to cancelindirect exports than direct exports The main disadvantage of indirectexporting is the transfer of power to the intermediaries As a result, companiesmay lose the opportunity to build long-term relationships and offer after-salesservices to customers

Indirect exporting is a strategy best suited for companies trying to increaseprofits quickly

1.2.2.The role of Exporting

a) Higher revenue to the business

Help increase sales, diversify output markets to create a stable source of incomethat can be expanded to the world

b) Government Support

Governments often encourage exports as they boost the international economy and increase the flow of foreign currency into the exporting country This trade can work in favor of the country's economy

c) Create jobs and improve people's lives

Exporting goods to the international market has a very large scale This, in turn,provides employment opportunities for many people to help improve people's living standards

d) Promote corporate and national brands in the international market

The strong companies that export many valuable products to the international market, in addition to dominating the market, also help affirm the company's

name A country with many strong brands is also asserting its own brand This can be clearly seen through the contributions of big names to national brands such as: Microsoft, Apple (USA), Sony, Toyota (Japan), Samsung, Hyundai (Korea), Lenovo, Alibaba (China)…

e) Expand and build relationships with countries around the world

Exporting goods makes it possible for a country to build new relationships with other countries.Thus, this also makes the friendship between a country and other countries more cohesive and durable

1.3.The factors affect to export goods

1 Subjective factors from countries

a Development strategies and legal systems of exporting and importingcountries

Each country's development strategy is a set of goals and objectives to beachieved over a long period of time Based on strategies and policies, countrieswill have specific legal provisions on import and export activities as well asstate management of import and export to achieve the common goal of thecountry

b Consumption demand of the importing country

Increased consumer demand in the importing country creates an impetus forthe host country to increase exports The main reason is that traders areoptimistic about the future prospects of sales in addition to the increase inproduct selling prices due to increased demand

c The production capacity of the exporting country

The design, quality and output of products meet international tastes, thedevelopment potential and competitiveness of export goods as well as exportenterprises will be very high in the international market

d Level of development of facilities, techniques and export services

Advanced infrastructure, warehouses, convenient and modern roads, exportservices with high specialization help reduce logistics costs, reduce costs, andincrease competitiveness in the international market

e Competitiveness of export enterprises

Healthy competition will ensure sustainable development Competition helpsexport enterprises to constantly invest in technology development and productquality At the same time, competition also contributes to eliminating weak andincompetent enterprises.

2 World objective factors

a Exchange rate

When the exchange rate increases, the domestic currency appreciates relative

to the foreign currency, the price of exported goods becomes more expensive,thereby negatively affecting export supply and vice versa Therefore, thedevaluation of the domestic currency is a common policy of countries to boostexports Along with that, the import of goods increases if the exchange ratefalls because then the price of imported goods decreases relative to domesticgoods

b World economic and political situation

Although this is a macro factor, it has a strong impact on export activities Atrade war, a global recession or even a pandemic will put the import and export

of every country in a difficult situation A typical example for the impact ofthis factor is the supply chain disruption due to measures to close the border toserve the prevention of the Covid-19 epidemic in many countries in 2020

CHAPTER 2: THE STATE OF EXPORTING GOODS BY THAILAND IN THE PERIOD 2015-2022

2.1.Thailand’s export turnover in the period 2015-2022

1.The first period (2015-2019)

Slowing growth in the period 2013 - 2015 due to the domestic political crisis as well as the decrease in global demand has reduced Thailand's traditional

strength exports: electronics, agricultural goods, umbrellas auto parts and accessories, processed food Thailand's exports in 2015 reached 213.4 billion USD And from 2016 to 2018, the Thai economy had a recovery, the GDP growth rate in 2016 was 3.3% ($412 billion), in 2017 it was 3.9% ($455 billion)and the first quarter of 2018 I/2018 was 4.8% At that time, Thailand's export turnover also increased gradually 2016 to 2018 from 214 to 251 billion USD in

2018 In macroeconomic policy, Thailand identifies exports as the engine of economic development with exports accounting for 60% of GDP.By 2019, The overall global economy in 2019 expanded at a slower pace from the previous year Several countries were affected by the slowdown in global trade volume partly due to intensifying trade tensions between the US and China As a result, exports and manufacturing production in various countries contracted Businesssentiment and investment were affected by uncertainties throughout the year such as international trade protectionism measures, Brexit and geopolitical risks Nonetheless, private consumption remained an important growth driver in

many countries Looking ahead, the global economy was expected to recover gradually in line with the improvement in international trade situation after the U.S and China reached an agreement on the phase one trade deal and the recovery of the electronic cycle However, there remained risks that warranted close monitoring, including (1) the spreading and severity of the COVID19 outbreak, (2) trade tensions between the U.S and China that could become intensified and (3) geopolitical risks in many areas.The Thai economy in 2019 below its potential level, due to the impact of the continued contraction in external demand on domestic demand becoming more pronounced

Merchandise exports continued to contract in various categories as a result of the slowdown in both trading partner economies and global trade volume

following the increased trade tensions between the U.S and China

Nevertheless, exports of some products benefited from the relocation of

production base to Thailand and substitution for Chinese products in the U.S market such as electrical appliances and tires.That made the export turnover in Thailand reached 242.7 billion USD

2.The second period( 2020-2022)

The outbreak of the COVID-19 acute respiratory infection pandemic may causedamage to the country's export industry, and it has caused Thailand's

merchandise export turnover in 2020 to decrease by nearly 16 billion USD compared to 2019 and set at 227 billion USD For the whole year of 2021, Thailand's exports increased by 17.1% to 271 billion USD Such strong export growth during the COVID-19 outbreak can be attributed to accelerated imports

in many countries to stockpile ahead of the holiday season; improved

semiconductor shortage; and the implementation of the export promotion plan

of the Ministry of Trade At the same time, foreign demand and global trade volume improved along with the recovery of the world economy Furthermore, the devaluation of the baht and high crude oil prices have helped increase the competitiveness and value of related export products By the first quarter of

2022, Thailand's exports grew 14 percent, 9%, reaching 73.6 billion USD Thus, the export value of goods (excluding gold, petroleum-related products and weapons) of Thailand has continuously grown for 13 consecutive months Export products recorded with a strong increase in March include goods

benefiting from gasoline prices and a number of other goods increasing such as:Iron, steel, crude oil, refined oil, chemicals , plastics, rubber tires and

agricultural and food products In addition, a number of other goods also saw a sharp increase in exports such as household appliances, computers, televisions, phones as well as medical products to prevent and control the Covid-19

epidemic, which are still in demand

“The strong growth in Thai exports has been attributed to strong global demand,

in part due to the improved Covid-19 situation The impact of the Ukrainian military conflict on Thailand is also relatively limited as these two countries account for only a very small proportion of Thailand's total exports Thailand in 2022 reached the milestone of 287 billion USD

Russian-2.2.Thailand’s main export goods