Professional Documents
Culture Documents
KTQT 12
KTQT 12
HANOI, 2/2023
GUARANTEE
I hereby declare that I have completed this assignment entirely on my own. To the
best of my knowledge, the statements and materials used in the exercise have been
cited, and are guaranteed to be precise to the highest degree. If the assignment is
not performed as specified above, I will accept full responsibility.
Hanoi, February 9, 2023
Prepare by
Nguyễn Hà Phương
THANK YOU
First and foremost, I would like to express my sincere gratitude to all of the
instructors at the National Economics University who have diligently taught and
brought with us valuable expertise and information.
I want to express my gratitude to Associate Professor Dr. Nguyen Thuong Lang in
particular 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 of
which will be essential for my career path.
Finally, I could not have completed this essay without the support of my family
and friends who have always encouraged, contributed ideas and helped in the
process of studying and researching to complete this exercise.
Hanoi, February 9, 2023
Prepare by
Nguyễn Hà Phương
OPENING
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
CONCLUSION
LIST OF REFERENCES
INTRODUCTION
1.Inevitability of topic selection
Sustainable economic growth is always the top goal of each country in order to
comprehensively 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 on
tourism and exports, with exports accounting for about 60% of GDP. It is the 2nd
largest economy in the ASEAN region (after Indonesia), 25th globally by nominal
GDP, 21st in the world by purchasing power parity, and 28th in the world. the
world in terms of total national brand value (statistics in 2020).
Meanwhile, Vietnam moved from a centrally planned economy to a market
economy and opened up to international economic integration. The implementation
of industrialization and modernization in line with the Party's renovation line has
actively 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 and
prosperity 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, reform
and opening up, towards export, Vietnam's economy has achieved many
achievements, but there are also many challenges and difficulties that require
solutions. new approach on the basis of selective lessons learned from previous
countries.
Vietnam and Thailand have some similarities in terms of economic, natural and
social conditions. Therefore, studying the export process of Thailand not only has
theoretical and practical significance, but also has an empirical reference for the
export process in Vietnam today. That's why I chose the topic: "EXPORTING
GOODS BY THAILAND IN THE PERIOD 2015-2022&SUGGESTIONS TO
VIETNAM" 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 the
export 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 to
buyers in another. Exports, along with imports, make up international trade.
Exports are incredibly important to modern economies because they offer
people and firms many more markets for their goods. One of the core functions
of diplomacy and foreign policy between governments is to foster economic
trade, encouraging exports and imports for the benefit of all trading parties by
the specialization of production by each country.
Export agreements are often heavily strategic, with countries exchanging
agreements to ensure their own country can not only receive the goods they
need 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 and
economic 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 and
indirect exporting.
Direct exporting is a type of exporting where the company directly sells
products to overseas customers. All the deals are done directly between the
companies without any intermediaries. This way, the companies have more
control over the processes. Direct exporting also increases profits as the
intermediary is eliminated, reducing costs. Direct exporting also creates a
stronger bond between the supplier and the buyer, and maintaining business
relationships is crucial for business success.
Despite the advantages mentioned above, direct exporting also demands more
resources from the exporting company. This exporting type requires more
personnel, resources, and time than it would if the export process were to
happen through an intermediary.
Direct exporting is the best strategy for companies trying to penetrate new
markets globally for the long term.
Indirect exporting is a type of exporting practiced by companies that sell
products to other countries with the help of an intermediary. The company has
various intermediaries, such as foreign agents, export merchants, expert
management companies, etc. Here, businesses have lesser control over the
processes.
The intermediaries are present in the country producing the product. They are
responsible for sending the products to the customer's country and finishing all
the paperwork, transport, and marketing. The first intermediary may sell
directly to the customer or the customer's intermediary.
Indirect exporting is less expensive than direct exporting. It is easier to cancel
indirect exports than direct exports. The main disadvantage of indirect
exporting is the transfer of power to the intermediaries. As a result, companies
may lose the opportunity to build long-term relationships and offer after-sales
services to customers.
Indirect exporting is a strategy best suited for companies trying to increase
profits 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 income
that 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 importing
countries
Each country's development strategy is a set of goals and objectives to be
achieved over a long period of time. Based on strategies and policies, countries
will have specific legal provisions on import and export activities as well as
state management of import and export to achieve the common goal of the
country.
b. Consumption demand of the importing country
Increased consumer demand in the importing country creates an impetus for
the host country to increase exports. The main reason is that traders are
optimistic about the future prospects of sales in addition to the increase in
product selling prices due to increased demand.
c. The production capacity of the exporting country
The design, quality and output of products meet international tastes, the
development potential and competitiveness of export goods as well as export
enterprises 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, export
services with high specialization help reduce logistics costs, reduce costs, and
increase competitiveness in the international market.
e. Competitiveness of export enterprises
Healthy competition will ensure sustainable development. Competition helps
export enterprises to constantly invest in technology development and product
quality. At the same time, competition also contributes to eliminating weak and
incompetent 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, the
devaluation of the domestic currency is a common policy of countries to boost
exports. Along with that, the import of goods increases if the exchange rate
falls because then the price of imported goods decreases relative to domestic
goods.
b. World economic and political situation
Although this is a macro factor, it has a strong impact on export activities. A
trade 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 of
this factor is the supply chain disruption due to measures to close the border to
serve the prevention of the Covid-19 epidemic in many countries in 2020.
The outbreak of the COVID-19 acute respiratory infection pandemic may cause
damage 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 Russian-
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.
2.2.Thailand’s main export goods
Thailand has identified 5 priority sectors including Agriculture, Electronics,
Agro-manufactured products, Automotive, Apparel and Textile Materials. As
the world's second largest rice exporter (after India), agriculture has always
played an extremely important role, contributing to the development of the Thai
economy. Sustainable agricultural development is considered one of Thailand's
main economic drivers. Not only is it one of the world's leading rice exporters,
Thailand's other agricultural products also have major export metals such as
sugar, pears, and rubber. Besides, The manufacturing sector is diversifying and
that has contributed much to growth during the economic boom. Fast-growing
industries include: computers and electronics, apparel and textile goods,
furniture, wood products, canned foods, toys, plastic products, gems and wares
jewelry. High-tech products such as components and integrated circuits,
electrical appliances, and motor vehicles are leading Thailand's export
growth.Thailand's exports are stronger after 2020 thanks to the strengthening of
global demand, partly thanks to the improvement of the Covid-19 epidemic
situation.
2.3. Thailand's major export markets
From 2019-2021, the United States is Thailand's largest export market with the
main items being rubber, automobiles and components, gems and jewelry, and
the second largest supplier after China. with chemicals. Followed by the
Japanese market. Countries in ASEAN also contribute a lot in Thailand's
development turnover such as Vietnam, Malaysia, Singapore, etc.
2.4.The assessment of Thailand’s export situation
In general, from 2015-2019, there was a fluctuation in the export situation and
was evident in the first year and 2020. In 2015, Thailand's export situation
slowed down due to the political situation in the country. From 2016 to 2018,
the Thai economy recovered and then, Thailand's export turnover also increased
gradually. By 2019, the global economy was expanding at a slower rate than the
previous year. Several countries were affected by the decline in global trade
volumes in part due to increased trade tensions between the US and China.
Business and investment sentiment was affected by uncertainties throughout the
year such as protectionist international trade measures, Brexit and geopolitical
risks. However, exports of some products benefited from shifting production to
Thailand and replacing Chinese goods in the US market, such as electrical
appliances and tires. The outbreak of the COVID-19 acute respiratory infections
caused damage to the country's export industry, and it caused a decrease in
Thailand's merchandise export turnover in 2020. By 2021, export growth strong
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.
2.5.The orientation to export in 2023
In order to promote exports, solve obstacles to trade and limit the negative
effects of the global economic recession in 2023, Thailand is targeting a group
of countries including Cambodia, Laos, Myanmar and Vietnam.Thailand aims
to export to the market of 4 countries next year, increasing to 33.5 billion USD
from 28 billion USD this year. Major export items include construction
materials, electrical equipment, plastic beads, and garments.Along with the
Middle East and South Asia, Cambodia, Laos, Myanmar and Vietnam are
considered as one of the three high potential export markets of Thailand next
year.Thailand's Ministry of Commerce also pledged to increase border trade
with these countries next year, especially in food, fruits and vegetables.
CONCLUSION
Exports play a very important role in the economies of countries. Because of the
similarity in many economic, social and natural aspects between Thailand and
Vietnam, it is important to learn about Thai exports in the future. The period 2015-
2022 and providing solutions for Vietnam are worth noting. Through this essay,
the following contributions are made:
In chapter 1, the essay mentions and clarifies the concept, characteristics and role,
classification of exports to understand the nature of export and how it plays an
important role.
In Chapter 2, the thesis analyzes Thailand's export situation in the period 2015-
2022 and shows how economic, political, social and other factors have influenced
the development process. Products and partners that Thailand focuses on and plans
in 2023.
In chapter 3, I made a comparison between the export turnover of Thailand and
Vietnam. Although Vietnam has slightly better data in the recent period, it cannot
be subjective because most of the export turnover. Imports come from foreign
investment capital, human resources still have many limitations and the application
of scientific-technical methods has not been popularized in many fields. From
lessons on success and Thailand's failure, I've come up with some things that
Vietnam needs to improve on.
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