Exports are a key engine of Thailand's economy, accounting for about half of Thailand's total GDP. After exports shrink in 2023, the Thai government is apparently brewing some surprising "good ideas" in order to pursue innovation and change. Thailand's Commerce Minister Phumtham Wechayachai said in an interview on Tuesday that 30 to 50 well-known social influencers in China will be invited to visit Thailand in May for a week, with the purpose of allowing them to live broadcast Thai products to promote exports.
Phumtham pointed out that the world is changing and the Thai government must consider new sales methods.
He added that the government would share sales profits with these live-streamers to incentivize their work. Even if it fails, Thailand will lose nothing, but if it succeeds, the Thai government will promote this strategy to other aspects.
How to use star power
According to data from the Thai Ministry of Commerce, Thailand’s cross-border and transit trade volume in 2023 will be 1.74 trillion baht (approximately US$49.1 billion), a year-on-year decrease of 2.6%. Among them, the export value decreased by 4.6% year-on-year; the import value increased slightly by 0.2%. Among them, China is Thailand’s largest transit trade partner.
According to Phumtham, China-Thailand transit trade accounts for 52% of Thailand’s total transit trade, and Thailand’s main exports to China include fresh durians, hard drives and processed wood.
Transit trade is when goods are transported from the producing country to the consuming country and pass through other countries. For the countries passing through, it is considered transit trade.
Judging from the data, Thailand obviously needs to focus on the Chinese market in exports to achieve the goal of driving GDP growth by 5% during the new government's term. For Thailand, whose average economic growth rate over the past decade was only 1.8%, 5% is undoubtedly an extremely ambitious goal.
In addition to using Chinese Internet celebrities to sell various Thai products to Chinese consumers, Thailand also plans to embed local products and popular tourist locations in upcoming Thai dramas. It is said that the Thai government also hired two Thai celebrities with large fans in Southeast Asia, China, Japan and South Korea to participate in a variety show to help further expand marketing.
Phumtham said that he felt a different power at the press conference on the TV cooperation and expected that the cooperation will generate an economic value of approximately 2 billion baht (US$560 million).