Not Tourism Or Massage Parlours, This Is Thailand's Biggest Revenue Source
A closer look at the numbers reveals that although tourism contributes around 20 percent to Thailand's GDP, other sectors outpace it in economic weight. From rice fields to car factories, Thailand's economy is anything but one-dimensional.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
an hour ago
- Bangkok Post
Tariff of 19% dubbed 'good news'
Despite great relief following the announcement of a 19% US tariff rate on Thai exports on Friday, the business sector remains fraught with concerns, particularly over the plight of Thai small and medium-sized enterprises (SMEs) and the agricultural sector. WAKE-UP CALL Piti Tantakasem, chief executive of TMBThanachart Bank, posted on Friday on his Facebook page that the tariff agreements the US is pursuing globally are reshaping the trade landscape from one based on free trade to a model of conditional trade, with a clear effort to exclude China from international supply chains. In this new scenario, the traditional rules of global trade will no longer apply, he said. Regarding Thailand's agricultural sector, which has long been a tool used in domestic politics, Mr Piti said it faces serious challenges from global powers with fully integrated, high-tech agricultural systems, capable of penetrating even the most entrenched political protections. "If Thailand sees the '19% deal' as a victory and is content with it, this could be 'The Beginning of the End'. But if we take it as a wake-up call to rethink and reform, then this marks 'The New Beginning'," he wrote. Mr Piti emphasised the need for Thailand to re-strategise by shifting the focus of the Board of Investment (BoI). Rather than simply measuring foreign direct investment, the BoI should prioritise building and enhancing national capabilities. He argued that Thailand's manufacturing sector must evolve, from being the "factory of the world" to developing innovative products that are uniquely Thai. Mr Piti urged Thailand to strengthen its domestic supply chains and promote authentic Thai goods to gain a competitive edge in government procurement, meet private sector demand and drive domestic consumption. He also called for clearer distinctions between legitimate businesses and grey-market enterprises, encouraging support for Thai companies that uphold good governance and social responsibility. "This is an opportunity to change, rethink and reform Thailand. This is a new beginning to make Thailand relevant again," said Mr Piti. SUPPORT MEASURES Poj Aramwattananont, chairman of the Thai Chamber of Commerce and the Thai Board of Trade, expressed optimism about Thailand's competitiveness in the region, bolstered by tariff rates now aligned with other Southeast Asian nations. However, he emphasised the urgent need for government measures to support Thai entrepreneurs in adapting to the new US tariff regime. These measures should focus on advancing technology, financing, marketing and trade innovation to help businesses penetrate new markets, said Mr Poj. He also urged Thailand to heed the 40% transshipment rate, warning of penalties if Thai exports are found to violate it. Certain Thai products may face increased scrutiny and Mr Poj called for clearer definitions of regional value content across various product categories. In parallel, he called for the government to formulate strategies to manage rising imports from the US, especially in sectors that may be vulnerable to increased competition. "The chamber believes further negotiations can secure more favourable terms," said Mr Poj. "We hope Team Thailand continues to advocate strongly for the interests of Thai businesses." He also advised exporters to promptly adjust their shipping schedules and cost structures to mitigate the impact of the new tariffs. The private sector stands ready to collaborate with the government, especially in supporting industries likely to be affected by import shifts under evolving regional value chains, said Mr Poj. TOUGH TASKS AHEAD Thai entrepreneurs need to enhance their competitiveness to brace for intensifying competition despite the agreement on a lower tariff rate on Thai exports similar to regional peers, said the Federation of Thai Industries (FTI). While the months-long negotiation with US authorities ended, Thai manufacturers that export to the US need to adapt to the new tariff rules set by the Trump administration. "It is good news amid challenges," said Kriengkrai Thiennukul, chairman of the FTI. The 19% tariff is acceptable because none of the Southeast Asian exporting nations gains an advantage for shipments to the US, he said. However, entrepreneurs with profit margins of less than 10% need to do more homework, said Mr Kriengkrai. "These manufacturers need to reduce costs, increase productivity and talk with their trading partners to avoid passing the financial burden on to consumers," he said. Other companies with high margins should not be significantly affected by the tariffs, said Mr Kriengkrai. Though changes in US policy are expected to disrupt trade, Thai entrepreneurs should take this as an opportunity to lift their competitiveness, he said. One concern is the influx of products redirected to Asian markets due to US tariffs, hampering manufacturers in the region, said an executive in the electrical appliance sector who requested anonymity. Thai manufacturers are advised to adopt more technologies to enhance production processes and reduce costs, said Mr Kriengkrai. "We also need to seek alternative markets other than the US by forging new partnerships," he said. The FTI asked the government to help businesses access financial sources at a time when they face costlier exports. Thai farmers also need help if the government is allowing more imports of US crops in exchange for the 19% tariff rate, said Tanit Sorat, vice-chairman of the Employers' Confederation of Thai Trade and Industry. BURDEN FOR SMES Supree Thongpetch, chairman of the Thai Small and Medium Enterprise Council, which represents 80 member associations, said more than 2 million Thai SMEs that export to the US will face challenges based on the new tariff. He said many of these small businesses rely on online platforms such as eBay and Amazon to sell their products, often avoiding import duties since they typically export in smaller quantities. Their products range from maternity and baby clothing to aroma and spa items. The US currently applies low tariffs or exemptions for certain goods with existing purchase orders. However, the increase to a 19% tariff could put these businesses at a disadvantage as they may struggle with rising costs and lose their competitiveness, said Mr Supree.
West Australian
an hour ago
- West Australian
WIN a dining experience for four at Lotus
If a vibrant atmosphere, Southeast Asian inspired share plates at a multi-level hotspot sounds like your ideal night out we've got the experience for you. We're giving you and three friends the chance to win an unforgettable experience at Lotus , located in the heart of The Beaufort. Known for its award-winning authentic dishes and flavourful share-style menu you'll indulge in the signature Feed Me menu complete with a bottle of bubbles to toast the night. Explore more of what Lotus has to offer here . For your chance to win, look for the code word in PLAY magazine in The West Australian and enter your details below. Entries close 12:00pm, Friday 8 August 2025. Terms and Conditions apply . 18+ only. Enjoy responsibly.
AU Financial Review
3 hours ago
- AU Financial Review
Headed to Singapore? Tag on a hop to one of these island retreats
Visitors to Singapore often combine a stay in the city-state with a side trip to a Southeast Asian resort, rounding out the journey with a dose of blue seas, long beaches, and cocktails at sunset. But what many international visitors don't realise is you don't have to board another commercial flight to get to a desert island hideaway: you can go by boat.
