Survey: Thai firms upbeat on trade
With strong economic momentum in Thailand, the country’s businesses are optimistic about international trade prospects, says the latest HSBC Navigator business report.
The report surveyed over 8,500 companies in 34 markets worldwide, gauging business sentiment and expectations for trade activity and business growth.
Businesses in Thailand are more optimistic about the outlook for international trade (92%) compared with their global peers (78%). Thai firms cited increased consumer confidence (50%) and global economic growth (44%) as the key drivers underpinning their optimism.
Nearly all respondents from Thailand are feeling confident about their current trading environment (96%), higher than companies globally (81%).
“It’s exciting to see a buoyant business outlook in Thailand, and this is certainly a trend we’re seeing from our clients,” said Krisda Phatcharoen, head of commercial banking for HSBC Thailand. “As businesses in Thailand grow, we expect new opportunities to emerge from increased investment in technology, digitisation and data optimisation.”
Businesses here also believe that the prospects of a free-trade agreement (FTA) with the EU, Thailand’s third-largest trading partner, will help drive opportunities and stimulate economic growth.
Similarly, majorities expect Thailand’s Asean membership (83%) and the Asean-China FTA (74%) to boost their business in the next three years.
But trading internationally isn’t without its concerns for Thai firms, as 81% said governments around the world are becoming more protective of their domestic businesses, compared with the global average (63%).
While challenges may exist, many Thai corporations are turning their attention to productivity and new business strategies. The vast majority (97%) of Thai respondents are using data and analytics to optimise their performance, significantly higher than the global average of 75%.
Firms in Thailand are positive they can reap the benefits of innovation, such as using technology to improve efficiency in manufacturing (84%) and embracing the Internet of Things (78%) and Industry 4.0 (78%).