Govt will help exporters weather tariffs
The US said on Friday that Thai goods bound for the United States will be subject to a 19% tax, starting on Aug 7.
The rate, markedly lower than the 36% initially announced by the US, was announced after the government agreed to eliminate import duties on over 10,000 items imported from the US.
Sunanta Kangvalkulkij, director-general of the Department of International Trade Promotion (DITP), said staff have been instructed to come up with measures to assist affected businesses.
They include extending soft loans to help affected businesses, identifying new markets for Thai goods, boosting efforts to prevent transshipment and curbing the sale of substandard goods, she said.
Authorities will also review regulations to help support exporters deal with the new tariffs, Ms Sunanta said. For instance, the government is considering reviewing the requirements for businesses to qualify for the SME Pro-active programme, and increase the support cap from 200,000 baht, she noted.
The Commerce Ministry is also slated to sign a memorandum of understanding (MoU) to bolster cooperation with the private sector and financial institutions in about two weeks.
The DITP chief said the department will use the 50 million baht it received under government's 115-billion-baht economic stimulus package to assist in its efforts.
Staff are gathering information from affected businesses to determine what additional measures are required.
This will be compiled into a proposal that will be submitted to the commerce minister, cabinet and the government's economic stimulus committee for approval, she said.
Asked to comment on the National Shippers' Council's projection that Thailand's export sector will grow by 5–7% this year, she said that the estimate is possible.
US importers of Thai goods have so far found the new tariff acceptable and comparable to those imposed on other countries in the region. Additionally, trade with new markets is showing promising signs, and the private sector is adjusting to the new rate. The ministry's projects exports will grow by 2–3% this year, she said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
33 minutes ago
- Bangkok Post
MTC sees healthy loan growth
Muangthai Capital (MTC), Thailand's leading microfinance company, expects 10-15% loan growth in the second half of 2025 and a non-performing loan (NPL) ratio of no more than 2.70%, backed by an expansive nationwide network and a strong focus on credit quality. Chief executive Parithad Petampai said MTC continues to serve the grassroots economy through its vast network of more than 8,400 branches nationwide, offering fair interest rates and accessible financial services to reduce reliance on informal lending sources. For the second quarter, MTC reported a total loan portfolio of 175 billion baht, up 13% year-on-year, while total revenue rose 10.4% to 7.55 billion baht. Net profit for the quarter tallied 1.65 billion baht, marking a 14% increase. For the first half of 2025, the company achieved total revenue of 14.8 billion baht, up 9.84% year-on-year, with net profit surging 13.6% to 3.22 billion baht. The company posted growth even as the Thai economy showed signs of a slowdown in the first half, pressured by a soft tourism recovery, rising global economic uncertainties and trade policy headwinds influenced by the US, he said. Mr Parithad said MTC remains confident in its expansion strategy going forward. "We are committed to providing inclusive, transparent and fair financial services that empower underserved communities, strengthen the Thai economy from the ground up and support long-term social and environmental sustainability," he said. MTC's efforts aim to build trust and credibility among customers, investors and stakeholders, said Mr Parithad, adding the company received a five-star (excellent) corporate governance rating from the Thai Institute of Directors for seven consecutive years. The company also holds an AAA ESG rating from the Stock Exchange of Thailand and an AA rating from the MSCI ESG Index. Fitch Ratings affirmed MTC's national long-term rating at A-(tha), underscoring its strong financial profile and leadership in the microfinance sector. MTC has partnered with top-tier global financial institutions such as the International Finance Corporation, Japan International Cooperation Agency and Germany's KfW DEG. These collaborations reflect MTC's commitment to expanding its funding base and enhancing the financial capabilities of its customers while promoting economic inclusion and sustainable development.
Bangkok Post
an hour ago
- Bangkok Post
Thai SMEs are in need of a lifeline
Thailand's small and medium-sized enterprises (SMEs) are quietly suffering through a credit crunch with far-reaching implications. Despite accounting for over 90% of registered businesses, SMEs are finding it harder than ever to access capital. The economic recovery has been uneven, and traditional lenders -- still cautious after the pandemic -- are reducing risk exposure. But the core issue is not merely liquidity; it is the absence of a national system for reviving viable but stressed firms. Bank of Thailand data highlights a growing credit squeeze for Thai SMEs: Loan growth has turned negative over the past three years, while overall credit has grown steadily. In particular, the sector's hospitality segment was hit hard, with its credit dropping by more than 20%. Moreover, SMEs' NPL ratio remains elevated at 7.4%, far higher than the 2.8% national average in Q1 2025, and capital markets offer little in the way of alternative solutions. Meanwhile, corporate bond issuance has declined by 22.1% since 2022 and has struggled to recover. These symptoms suggest a deeper structural fault line -- one that impedes Thailand's ability to rehabilitate distressed enterprises before they collapse. Thailand's existing financial infrastructure was not designed specifically for widespread SME restructuring. The 1998 Asset Management Company (AMC) Act, introduced during the Asian financial crisis, allowed failed banks to clear toxic assets from the formal banking sector. However, the legislation was designed for systemic bank failures and asset fire sales, not targeted corporate revivals. Today's environment requires an entirely different toolkit. In Thailand, viable distressed companies have limited access to debt restructuring pathways. There are no mechanisms for debtor-in-possession (DIP) financing to support these firms during reorganisation. Court-led workouts are legalistic, slow, and heavily reliant on creditor-driven processes that often prolong distress and destroy value. There are few structured SME rescue programmes and rare institutional bridges between struggling firms and new capital. In short, Thailand falls short of what Japan, Korea, and other advanced economies built after their own crises: a scalable system for mid-sized corporate revival. The Industrial Revitalization Corporation of Japan (IRCJ), created in the aftermath of Japan's banking crisis, offers a precedent. It played a pivotal role in turning around iconic companies like Japan Airlines and Renesas. The IRCJ succeeded by blending financial tools with operational restructuring, mobilising private capital while coordinating among stakeholders. Thailand, by contrast, has seen only patchy attempts at private credit and distressed investing. Non-bank lenders, fintech platforms, and distressed asset managers are emerging, but their role remains limited. As a former CFO, I've observed that while some of these financing channels can provide flexible capital, they are often constrained by size, regulation, and unclear legal frameworks. Many operate in narrow niches -- digital micro-lending, unsecured retail portfolios, or high-yield special situations -- that do not align with the crucial needs of viable mid-sized businesses seeking support to return to a growth trajectory. High-profile cases like Thai Airways have drawn public attention to corporate distress, but they also reveal deeper inefficiencies, such as legal protraction. For Thailand's broader SME sector, such high-stakes, court-driven processes are neither accessible nor replicable. Without early intervention and rehabilitation tools, many promising SMEs risk being pushed into a corner. The solution requires bold policy reform. First, Thailand must invest in education to build a cadre of local turnaround practitioners who not only understand finance and accounting but also execute operational improvement with change management. These professionals are essential for diagnosing root problems, coordinating with creditors, and designing viable business plans. Second, the country needs a modern resolution platform capable of aggregating distressed assets, facilitating recapitalisation, and bridging capital to troubled firms. Third, a dedicated public institution akin to Japan's IRCJ should be established to oversee complex turnarounds with strategic economic relevance. This body could also catalyse private sector participation while maintaining discipline and accountability. Transforming distressed SMEs into productive economic contributors goes beyond financial engineering. It's about restoring business confidence, preserving jobs, and ensuring that Thailand's industrial base can adapt to global economic shifts. With the right tools and policies in place, Thailand could not only mitigate today's credit crunch but also lay the foundation for long-term competitiveness. What is at stake is not just a set of balance sheets, but the very fabric of Thailand's entrepreneurial economy. The time to build this economic transformation is now -- before the next downturn exposes the cost of inaction.
Bangkok Post
an hour ago
- Bangkok Post
Donations to provide aid along border pass B100m
More than 100 million baht has been donated to the government to support residents affected along the Thai–Cambodian border. Government spokesman Jirayu Houngsub said Deputy Prime Minister and Interior Minister Phumtham Wechayachai, currently serving as acting prime minister, recently presided over a donation ceremony at Government House. The donations, made by private organisations through the Office of the Prime Minister's disaster relief fund, will go toward assisting those affected by unrest along the border. Several private organisations and agencies contributed funds and supplies. Notably, Bangkok Mass Transit System Public Co Ltd (BTS) donated 50 million baht, while the Reignwood Foundation (Thailand) contributed 2.57 million baht in cash, medical equipment, and daily necessities. Additionally, the Tio Chew Association of Thailand, along with several other Chinese associations in the country, donated 2.49 million baht. The Thai-Chinese Friendship Foundation and Yongxing Steel (Thailand) Co Ltd jointly donated three million baht. After donating 50 million baht to the government, BTS chairman Keeree Kanjanapas said the BTS would donate an additional 50 million baht today to the Royal Thai Army (RTA), the Royal Thai Navy (RTN), and the Royal Thai Air Force (RTAF). These funds will support military personnel injured, disabled, or killed during the conflict, as well as their families. The total BTS donation will reach 100 million baht. Mr Keeree expressed deep condolences and admiration for the bravery and sacrifice of Thai soldiers stationed on the frontlines. "I'm well aware that making donations is only a small act of sacrifice and cannot compare to the losses suffered by our military personnel or the hardships faced by our fellow Thais living along the border," he said. "Therefore, I encourage the public and all organisations to make contributions -- whether in goods or financial support -- to boost the morale of those serving on the frontlines."
