Thailand Exports & Imports with 5 Neighboring Countries

Thailand’s cross-border trading with immediate neighboring countries during this year’s first quarter in 2019 has amounted to 11.4 $billion, accounting for a 1.86% increase and including 6.4 $billion in export goods, accounting for a 0.49% increase, and 5 $billion

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in import goods, accounting for a 3.66% increase. Thailand has earned 1.4 $billion in trade surplus.

The Department of Foreign Trade has unveiled the gross value of Thailand’s cross-border trading with immediate neighboring countries during this year’s first quarter in 2019 has amounted to 11.4 $billion, Malaysia has become Thailand’s largest cross-border trading partner with 11.4 $billion in combined trade value, accounting for 0.39% increase, and including 2.3 $billion in export goods, accounting for a 6.16% drop, and 2.4 $billion in import goods, accounting for a 7.39% increase. Myanmar has become the second largest cross-border trading partner with 1.7 $billion, followed by Laos with 1.6 $billion and Cambodia with 1.4 $billion in trade value.

Thailand’s cross-border trading through Laos has seen southern China as the largest trading partner with 1 $billion, accounting for 50.51% increase, including 0.32 $billion in export goods, accounting for a 42.58% increase and 0.58 $billion in import goods, accounting for a 55.35% increase, followed by Vietnam with 0.59 $billion and Singapore with 0.57 $billion.

From this information that support by the theory of gravity model mention about

“The advantage of the location of Thailand is the center of gravity and attract a huge of migrant workers from neighboring countries, international trade, border trade, and investment from other country into Thailand”. That’s because from Thailand PEST analysis is show information about Political factor’s that more stable, have clearly plan strategy, and have policy for sustainable growth in the future. Economic factor’s forces

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that could impact on Thailand success, can see the numbers from World bank that shown about Thailand GDP, GDP per capita, and GDP Growth is steady increase and sure. Social factor that’s shown about the various holiday, foods, life style, socialization, and cultures Of Thailand and Myanmar, Laos, and Cambodia are very similar. That is one reason why a huge of migrant workers from that country popular come to work in Thailand, a lot.

Technology factors have master plan for Thailand 4.0 for support about Food, Agriculture and Bio-Tech, Health and Medical Technology, Robotics and Smart Devices and Mechatronics, Digital Industries, 5G technology, and have technology for support migrant workers in Thailand such as telecommunications, finance and banking, and remittances money back to home country.

A. Thailand – Malaysia

Trade Overview. Malaysia was Thailand's No. 4 trading partner in the world and No. 1 for Thailand in ASEAN groups in the last 5 years. Trade between Thailand and Malaysia with a year an average of value about 23,972 Million US Dollars.

Table 4.8: Totals Thailand Exports & Imports with Malaysia

(In US Million) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exports ^{9,782 7,663 10,566 12,398 12,425 13,015 12,763 10,189 9,627 9,815 12,030} Imports 9,677 8,575 10,708 12,326 13,106 13,282 12,746 11,917 10,791 11,578 11,630

Source: Thailand Information and Communication Technology Center, Customs Department

Important exports products. Computers, Car accessories, components and equipment, Rubber, and Petrol and Gas.

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Important imports products. Crude oil, Computers, Equipment and components Electric machinery, Chemicals.

B. Thailand – Cambodia

Trade Overview. Cambodia was Thailand's No. 21 trading partner in the world and No. 8 for Thailand in ASEAN groups in the last 5 years. Trade between Thailand and Cambodia with a year an average of value about 4,992 Million US Dollars.

Table 4.9: Totals Thailand Exports & Imports with Cambodia

(In US Million) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exports 2,014 1,580 2,342 2,905 3,986 4,256 4,526 4,959 4,672 5,270 3,220 Imports ^{901 777 214 175 528 355 590 639 938 895 313}

Source: Thailand Information and Communication Technology Center, Customs Department

Important exports products. Non-alcoholic beverages, Cars, Equipment and components, Vehicles and components, Motorcycles and components, Machinery and components, Cement.

Important imports products. Vegetables and vegetable preparations, Receiver-transmitter and installation equipment, Wire and cable insulated, Aluminum.

75 C. Thailand – Lao PDR

Trade Overview. Lao PDR was Thailand's No. 1 trading partner in the world and No. 7 for Thailand in ASEAN groups in the last 5 years. Trade between Thailand and Laos PDR with a year an average of value about 5,662 Million US Dollars.

Table 4.10: Totals Thailand Exports & Imports with Lao PDR

(In US Million) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exports ^{1,754 1,642 2,135 2,789 3,483 3,758 4,033 4,237 3,995 3,950} 3,100 Imports 614 462 749 1,129 1,309 1,360 1,411 1,471 1,877 2,220 2,610

Source: Thailand Information and Communication Technology Center, Customs Department

Important exports products. Diesel, Cars, Equipment and components, other industrial products, other refined products, Iron and steel products, other livestock goods, and Cosmetics.

Important imports products. Other fuels, Copper and products, Transmitter-receiver and installation equipment, Vegetables, Cement, Wire and cable.

76 D. Thailand – Myanmar

Trade Overview. Myanmar was Thailand's No. 18 trading partner in the world and No. 6 for Thailand in ASEAN groups in the last 5 years. Trade between Thailand and Myanmar with a year an average of value about 7,410 Million US Dollars.

Table 4.11: Totals Thailand Exports & Imports with Myanmar

(In US Million) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exports 1,317 1,544 2,072 2,845 3,127 3,788 4,239 4,174 4,176 4,196 3,060 Imports ^{3,376 2,781 2,813 3,268 3,674 4,033 3,917 3,566 2,354 3,279 3,010}

Source: Thailand Information and Communication Technology Center, Customs Department

Important exports products. Non-alcoholic beverages, Sugar, Alcoholic beverages, Fabrics and yarns, Fax machine, Teletype, Telephone equipment and components.

Important imports products. Natural gas, Aquatic Animals, Cows, Buffaloes, Pigs, Goats, Sheep, Other animal products, Oil plants. And about the imports number in 2014-2017 decrease because big flood disaster in Myanmar and decrease of value of Myanmar money.

77 E. Thailand – Vietnam

Trade Overview. Vietnam was Thailand's No. 7 trading partner in the world and No.

4 for Thailand in ASEAN groups in the last 5 years. Trade between Thailand and Vietnam with a year an average of value about 11,170 Million US Dollars.

Table 4.12: Totals Thailand Exports & Imports with Vietnam

(In US Million) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Exports ^{4,961 4,678 5,845 7,059 6,483 7,182 7,882 8,907 9,428 10,623 12,970} Imports 1,441 1,385 1,396 2,027 2,986 3,269 3,938 4,050 4,425 4,786 5,710

Source: Thailand Information and Communication Technology Center, Customs Department

Important exports products. Fresh fruit, Frozen and dried fruit, Cars equipment and components, Plastic beads, Air conditioner equipment and components, Petrol and Gas, Chemicals.

Important imports products. Electrical appliances in the house, Crude oil, Equipment and components Electric machinery, Iron and steel products, Aquatic Animals.

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IV. Investment and Developing Thailand’s Vision of a Sustainable, Technology-Driven Future

A. Overview

Thailand takes the 2019 ASEAN chair under the theme "Advancing Partnership for Sustainability". The theme is in line with its Thailand 4.0 model - the economic, digital and innovation transformation plan of the country. There has never been a more significant time in history for countries, companies, communities and individuals to steer towards a sustainable future. Since 2015, when the United Nations set their 17 Sustainable Development Goals (SDGs) to be achieved by 2030, governments and businesses around the world have increased efforts to address the environmental, social and economic challenges of today, to create a better tomorrow. In 2019, Thailand has moved up 19 places in its SDG ranking to 40th place globally, and first in ASEAN.

With its cultural heritage, flavorful food and seemingly endless white beaches of its many islands, the Kingdom of Thailand has long been known as one of the world’s most popular tourist destinations. But Thailand isn’t just a tourist hub. For decades, it’s been pushing for a technology-driven and sustainable future as a ‘bio-hub’. For the last few years, the Thai government has been implementing Thailand 4.0, a value-based economic model driven by innovation, creativity and technology focused on social and environmental sustainability. One of the key industries Thailand 4.0 is focusing on is bioeconomy, which is made up of environmentally-friendly industries such as bioenergy, biochemicals and biopharmaceuticals.

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Now, the government will deliver its vision of a green economy by investing in the development of new high-tech facilities and centers to bridge the country’s natural resources with technology. These include projects in the EECi such as Biopolis, an innovation platform that will open in October 2020 with the aim of bringing Thailand to the forefront of bioindustry.

B. Bioeconomy in Thailand

Bioeconomy uses renewable biological resources and its waste to produce everything from food to medicine and bioenergy. In short, growing the bioeconomy creates outsized and sustainable economic value from a country’s waste products and resources. Industries that merge nature with technology are key to growing Thailand’s bioeconomy as well as preparing for the future.

This is why biotechnology, a framework which can be applied to industries such as biopharmaceuticals, biochemicals and bioenergy, has seen rapid growth in the past few years. Thailand is in an exceptionally advantageous position to establish itself as a regional leader; it’s not only a first mover in ASEAN, but can also make use of the value of biotechnology for which the global market is expected to reach USD775 billion by 2024.

As its population grows, the need for sustainable agriculture and food products will increase. As the country moves to become a high-income society, personal energy consumption is expected to increase, making the production of renewable energy and bioenergy even more important.

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Thanks to its natural resources, Thailand produces more than 50% of the world’s cassava and 9.4% of the world’s sugar. Both produce ethanol, a biofuel which can drastically reduce carbon dioxide emissions. For example, it can replace gasoline as a fuel for cars. Brazil, the world’s largest sugar exporter and sugarcane ethanol producer, has reduced CO2 emissions by 350 million tons since 2003. Thailand currently has the potential to produce 4.8 million liters of ethanol per day, nearly double the 2.65 million per day produced in 2015. That’s equal to 11.3 million liters of fossil fuels per day, replaceable by renewable energy. The opportunities are rich and there are many Thai companies leading the charge in driving the country towards a greener future.

C. Eastern Economic Corridor (EEC)

Thailand 4.0 aims to cast a more robust response to the economic challenges faced by past economic development models. The bigger goals that Thailand is pushing itself towards are economic prosperity, raising the social well-being of its society and transforming its people to be ready for the 21st Century — all while making the environment a priority.

1. High speed rail by 2023. One of the key infrastructure initiatives is a high-speed rail system linking three main airports - Suvarnabhumi and Don Mueang in Bangkok, and U-Tapao in Rayong and is expected to be in operation by 2023, serving an expected 100,000 passengers per day. The high-speed rail will be the primary transportation infrastructure between the Eastern Economic Corridor (EEC) and other regions in Thailand and beyond.

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2. Expansion of U-Tapao Airport by 2023. Expansion plans are being developed to make U-Tapao airport the third international airport serving Bangkok and its vicinity. The airport is primed to accommodate over 15 million passengers per year over the next 5 years and increase to 30 million in the next 10 years and 60 million in the next 15 years. New passenger terminal and runways will be built to support this expansion.

3. MRO Center by 2022. As part of an upgrade, a new state-of-the-art Maintenance, Repair and Overhaul (MRO) Center at U-Tapao airport will support the flagship Eastern Economic Corridor (EEC) with aviation paths through Asia. It will be one of the most modern and extensive in the region, offering heavy maintenance and line services. Poised to be the MRO hub for Asia, it will mainly serve airlines in Thailand and Asia-Pacific.

4. The Extension of Map Ta Phut Industrial Port by 2025. Currently operating at maximum capacity, Map Ta Phut Industrial Port is being developed to facilitate natural gas and raw fluid material for the petrochemical industry. The project is invested to develop the seaport's superstructure, including the dredging of watercourses, construction of embankments and ship wharves.

5. The Extension of Laem Chabang Sea Port by 2023. The expansion of Laem Chabang Port will offer increased capacity to support the EEC's escalated growth. As a transshipment port and gateway to the Indo-China region, the expansion will see the container terminal increase capacity from seven to 18 million twenty-foot equivalent units (TEUs) per year.

6. Eastern Economic Corridor of Innovation (EECi). The Eastern Economic Corridor of Innovation or EECi is an innovation zone that will house prototype initiatives

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and advance R&D facilities which will encourage the development of new high-tech industries to be innovation-based industries. The EECi will be a hub for the upcoming Biopolis for biotech research, Airpolis for automation, robotics and intelligent systems research and Space Innopolis for space.

7. Digital Park Thailand (EECd) BY 2021. The flagship Digital Park Thailand (EECd) project is designed as the premier digital showcase for Thailand 4.0 and home to ASEAN's largest digital community. In addition to a planned digital community with smart living spaces, the 96-hectare integrated site will feature a 5G testbed zone, an Internet of Things Institute, animation & 3D design center, as well as an Advanced Big Data Cloud and Data Center (ABCD).

8. Eastern Airport City (EECa). The Eastern Airport City (EECa) will occupy 10.4 square kilometers within U-Tapao Airport. A new passenger terminal and runways will be built to support this expansion. Other zones of facilities to support the aerospace and aviation industry include Cargo Zone, Cargo Village & Logistics as Free Trade Zone, Commercial Gateway, Maintenance Repair and Overhaul (MRO) Zone and Aviation Training Center.

83 V. Thailand Migration

A. Overview Thailand Migration

The total population of Thailand, as estimated by the United Nations Department of Economic and Social Affairs in 2017, stands at over 69 million. Thailand is an ageing society with the lowest population growth rate (0.2 per cent per annum) and the second lowest total fertility rate (1.5 children per woman) in South-East Asia (UNDESA, 2017).

The proportion of older persons (aged 60 years and over) in Thailand continues to grow, constituting approximately 16 per cent of the population in 2017, and is expected to increase to over 35 percent by 2050. Pending a major restructuring of the Thai economy, this will likely contribute to a continued reliance on migrant workers within the Thai labour market. The total number of non-Thai citizens living in the country remains difficult to determine precisely due to the presence of a large number of migrants who lack legal status.

Particularly in relation to labour migration, it is important to include an estimate of the number of irregular migrants in Thailand given that they constitute a significant proportion.

As of November 2018, statistics collated from various sources put the total non-Thai population residing and working in Thailand at approximately 4.9 million. Among the nearly 3.9 million migrant workers from neighboring countries, 3.1 million hold regular legal status while more than 800,000 are thought to be working in an irregular status. These figures represent a substantial increase from statistics in the 2014 Thailand Migration Report, which estimated Thailand’s non-Thai population to be 3.7 million, including 2.7 million migrant workers from neighboring countries. Given the many assumptions

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involved in making this estimate, it would be safer to place the total number of non-Thais living in Thailand at between 4.7–5.1 million. (See Table 4.12 and Figure 4.1)

Table 4.13: Estimated non-Thai population residing and working in Thailand (Nov 2018)

Source: Thailand Migration Report 2019, UNCDF

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Figure 4.1 shown the infographic about overview Thailand migration such as migration and development, and access service to migrants.

Figure 4.1: The Infographic about Overview Thailand Migration Source: Thailand Migration Report 2019, UNCDF

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B. How Immigrants Contribute to Thailand’s Economy

Immigrants to Thailand help increasing the country’s aggregate output (GDP). Both simulation model and growth accounting approach confirms that existing migrants have contributed around to 4.3 – 6.6 percentage point of the real GDP growth. When considering how immigration affects an economy, a key concern is whether native-born individuals lose their jobs or get paid less because of the increased competition by foreign-born workers. In particular the high share of foreign-born workers in elementary occupations, suggests that employment of immigrant workers has partly been a response to the abundant supply of relatively cheap workers available in the Southeast Asia region. Furthermore, Thailand is experiencing a significant amount of demographic change. Thailand’s aging population and falling fertility rates are expected to contribute to labour shortages in the manufacturing, agricultural, as well as service sectors. Hence, the demand for migrant workers is projected to continue, especially for low and medium skilled workers (ILO/ADB, 2014). Given these strong pull factors, labour migration will likely remain important for Thailand’s labour and economic growth and development in the short- and medium-term. An important question in this context is whether or to what extent the employment of immigrant workers has been beneficial for the employment of native-born Thai workers.

According to economic theory, labour immigration increases labour supply in destination countries and leads to adjustments of employment and wages. At the theoretical level, the nature of such adjustments depends on various assumptions, while empirical studies in the context of developed countries tend to show limited effects. However, effects

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are more likely to be negative for certain population groups, such as low-income or lower-educated workers and prior immigrant cohorts (Barone and Mocetti, 2011). While interest in the labour market effects of immigration in developing countries is growing, few empirical studies have been undertaken. Thailand is an exception in this regard, as a number of studies have explored the labour market impact of immigration in the country.

The immigration can have an impact on wages in Thailand, but its strength varies depending on the approach used. Kulkolkarn and Potipiti (2007) do not find significant effects of immigration on the reduction of wages for native-born individuals using a geospatial analysis, while Bryant and Rukumnuaykit (2007), based on a similar approach, argue that immigration does indeed cause a reduction in Thai workers’ wages. They reveal that a 10% increase in the foreign-born share can lead to a reduction in wages by 0.2%, when controlling for differences between districts. The authors find no significant effect of immigration on employment rates of Thai workers, and attribute these findings to the Thai market adjusting to increased immigration through reduced wages, rather than reduced employment. This reflects the fact that most Thais cannot afford to withdraw from the labour market, and the absence of a binding or enforced minimum wage at the time of the study (Bryant and Rukumnuaykit, 2007). Furthermore, immigrants experience a precarious legal situation and may therefore be more willing to accept lower wages. The authors warn, however, that they do not find any direct evidence to support one mechanism over another.

A relatively small effect on wages was also found by Lathapipat (2010), who also accounts for differences between districts as well as differences between and within industries. In addition, the author finds that prior immigrant cohorts are most strongly

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impacted by new immigration, while low unskilled Thai workers are also affected. Highly-skilled Thai workers benefit from higher wages. Lathapipat (2010) argues that labour intensive industries have become increasingly dependent on immigrant workers as Thais move up the skills ladder to take on better paying jobs. These effects are not found to be larger in provinces with a larger share of immigrants. In a second analysis, Bryant and Rukumnuaykit (2012) use data from a registration campaign for immigrants from Cambodia, the Lao People’s Democratic Republic (Lao PDR) and Myanmar in 2004 alongside survey data. These authors find a negative effect of immigration on Thai wages which is again relatively small, though larger than often found in developed countries, and no evidence of negative employment effects. Pholphirul and Kamlai (2014) find that an increase in the employment of immigrants in agriculture reduces agricultural employment by about 0.7% and wages by around 4.3%. This is attributed to the substitutability of low-skilled immigrant and native Thai workers in the sector.

Basic economic principles would suggest that if immigration has a negative effect on wages, one would expect to see a concomitant positive effect on employment rates. As already hinted at above by the findings of Pholphirul and Kamlai (2014), this might not be

Basic economic principles would suggest that if immigration has a negative effect on wages, one would expect to see a concomitant positive effect on employment rates. As already hinted at above by the findings of Pholphirul and Kamlai (2014), this might not be