Latest news with #Pipat
Bangkok Post
08-07-2025
- Business
- Bangkok Post
Bankers hope to mimic Vietnam deal
The US's proposed 36% tariff on Thai goods is likely to severely undermine Thailand's export competitiveness, warn economists in the banking sector. The best outcome Thailand can likely secure in trade negotiations with the US is a tariff rate of 20-25%, similar to the rate granted to Vietnam, said Kobsak Pootrakool, senior executive vice-president of Bangkok Bank. NEGATIVE IMPACT "If the final rate is higher, such as the proposed 36%, it would severely disadvantage Thai exporters and make it extremely difficult for them to compete in international markets," said Mr Kobsak. "The most pressing concern is Vietnam already secured a 20% tariff rate. If Thailand faces a significantly higher tariff, foreign companies planning investment here may shift their investments to Vietnam, inflicting long-term damage to the Thai economy." The US accounts for 18% of Thailand's exports. If the 36% rate is implemented, exports to the US could fall to 10% of the total, weakening bilateral trade relations over the long term, he said. The government should act swiftly by expanding into new export markets and offering export loan guarantees for small and medium-sized enterprises (SMEs) to cushion the impact, said Mr Kobsak. For some crops such as soybeans, which Thailand already imports in large quantities, tariffs may be eliminated. However, for other agricultural and livestock products, the government may need to negotiate special terms or allocate budgetary support to assist local producers, he said. Despite a slowing economy, the baht is at its strongest level in 2-3 years, due primarily to its inverse correlation with the US dollar, he said. To mitigate the effects of US tariffs, Mr Kobsak recommends exporters diversify into India, the Middle East, China, and Southeast Asia. He urged the government to guarantee export loans for SMEs through the Thai Credit Guarantee Corporation, while supporting SMEs through government procurement programmes. 'GIVE AND TAKE' STRATEGY Pipat Luengnaruemitcha, chief economist at Kiatnakin Phatra Financial Group, said the Thai government may need to adopt a give-and-take negotiation strategy, rather than aiming for a win-win outcome, following the US announcing it will maintain a 36% tariff on Thai exports. Citing the US-Vietnam negotiations, Mr Pipat said the US may expect Thailand to open its market further to American products, reduce import tariffs, remove non-tariff barriers, and address fraudulent origin labelling. He suggested Thailand gradually liberalise sensitive sectors, particularly agriculture. While agriculture is a pillar of the Thai economy and employs a large portion of the population, the government could implement measures to mitigate any short-term impact, said Mr Pipat. Thailand should also strengthen its competitiveness by attracting high-value and high-tech investments through incentives such as R&D support and tax credits to encourage electric vehicle parts manufacturing, artificial intelligence hardware production, and data centres, he said. Mr Pipat said an integrated task force is needed, comprising the Finance, Commerce and Agriculture ministries collaborating with the private sector to enable swift and strategic decision-making. Clear communication with all stakeholders is vital, including the US and international investors, about Thailand's serious commitment to economic development, he said. TOURISM A BUFFER If higher US tariffs are applied to Thai exports, the greatest impact would likely be felt in electronics and electrical components, where Thailand could face intensified global competition, said Sathit Talaengsatya, an economist at UOB Thailand. "Thailand maintains a competitive edge in tourism and hospitality, which should be developed into high-value service sectors such as wellness tourism to offset the impact on manufacturing exports," he said.
The Star
16-06-2025
- Politics
- The Star
Thailand suspends June deployment of over 2,000 workers to Israel and Iran
Artwork image: The Nation Thailand/ANN BANGKOK (The Nation Thailand/ANN): Thai Labour Minister Pipat Ratchakitprakarn on Monday (June 16, 2025) addressed growing concerns over Thai nationals amid escalating tensions between Israel and Iran. He confirmed that 39,500 Thai nationals are currently working in Israel—around 33,000 of whom are legally employed, while approximately 6,500 are undocumented. Of those, 29,300 are employed in agriculture, 2,500 in construction, and 1,200 in other sectors. The deployment of additional Thai workers to Israel has been temporarily suspended. In Iran, there are between 200 and 300 Thai nationals, both permanent and temporary residents. Among them, 39 are officially registered as workers, mostly based in Tehran and Isfahan. So far, there have been no reports of injuries or danger to Thai citizens in either country. 'All Thai workers in Israel and Iran are currently safe. There have been no reports of injuries or fatalities. The Labour Ministry remains in contact with them and is monitoring the situation 24/7,' Pipat said. To prepare for a possible evacuation, a special task force has been established at 16 locations across Israel. The fastest and most feasible evacuation route would be by land through the border into Jordan. Air evacuation is not an option at this time due to closed airspace, while sea evacuation is also being considered, although it would take more than 10 hours. Pipat noted that a 'war room' has been set up to monitor developments around the clock. Coordination with the Ministry of Foreign Affairs is ongoing to ensure immediate support when needed. The Permanent Secretary of the Labour Ministry has confirmed that an emergency fund has been prepared. Thai nationals needing support can notify the ministry directly. If the allocated budget proves insufficient, additional funds will be reallocated. 'The initial evacuation goal is to move workers to a safe third country. If conditions permit, they may remain in Jordan without needing to return to Thailand. However, if workers wish to return, the Thai government will facilitate their journey,' said Pipat. He added that the planned deployment of 2,000 Thai workers to Israel and Iran in June has been suspended. The Labour Ministry has also developed a proactive emergency response plan. This includes: Preparing land and air evacuation routes, particularly into Jordan, and coordinating with the Foreign Ministry for future air evacuations if feasible. Pipat said the ministry has also held consultations with labour counsellors in Tel Aviv and the United Arab Emirates (UAE) to assess the situation on the ground. All workers are confirmed to be safe and have access to adequate food, water, and shelter, with strong cooperation from Israeli authorities. 'At this moment, violence is intensifying. It is impossible to predict when fighting will escalate, cease, or resume. Airstrikes remain a threat, so we urge all Thai nationals to stay in designated safe areas. If sirens sound, seek shelter immediately,' Pipat warned. 'I am deeply concerned. Please do not take selfies or record videos in dangerous areas. If you see rocket activity, remember that shrapnel can cause serious injuries.' - The Nation Thailand/ANN
