Thailand’s export sector demonstrated resilience and positive momentum in February 2024, as reported by the commerce ministry, with customs-based exports registering a 3.6% increase compared to the same period last year. While slightly below analysts’ expectations, the consistent growth trajectory reflects a promising trend for the country’s trade activities.
The rise in exports comes on the heels of a 10% increase in January, showcasing the persistent expansion of Thailand’s trade volumes. In contrast, imports also saw a notable uptick of 3.2% year-on-year in February, surpassing expectations and indicating robust demand for goods and services.
The positive performance of Thai exports for the seventh consecutive month underscores the resilience and adaptability of the country’s trade landscape. The Permanent Secretary for Commerce attributed this success to the revival of global demand, which has provided a boost to Thai exports, supported by the solid growth of trade partners’ economies.
In February, electronics products stood out with a remarkable 13% year-on-year growth, with transistor parts seeing a significant 16% increase following a contraction in January. Moreover, the electronics parts industry received a significant boost with the announcement of Thailand’s first advanced semiconductor chip factory by the Board of Investment (BOI), underscoring the country’s commitment to enhancing its supply chain and bolstering the electronics sector.
This led to a surge in Hana Microelectronics Public Company Limited (SET: HANA) that rose as much as 6.5% intraday and settled 4.6% higher on Tuesday. The company announced a joint venture with PTT Public Company Limited (SET: PTT) late last month to study a possibility for an investment in the smart electronics industry.
It was widely anticipated that the Thai government has been exploring a possibility of creating an integrated circuit (IC) fabrication plant in Thailand. This bode well with HANA’s expertise in IC, which will be used to serve the EV supply chain.
The announcement from BOI, though not confirming the producer of Thailand’s first advanced semiconductor chip factory, gives HANA another push on Tuesday.
Additionally, the pet foods segment emerged as another highlight in Thai exports, experiencing a substantial 44% growth in February. This surge was supported by strong demand from major trade partners such as the U.S., Japan, Italy, Australia, and Germany, signaling a positive trend for Thailand’s export diversification and competitiveness in global markets.
Overall, the latest performance of Thai exports in February 2024 reflects a resilient and dynamic export sector buoyed by growth opportunities, industry advancements, and strong global demand, positioning Thailand favorably in the international trade landscape.
The results also support the rise in share prices of Thai stocks that focus their businesses on pet food. i-Tail Corporation Public Company Limited (SET: ITC) closed the day with a 2.60% gain at THB19.70 share share, while Asian Alliance International Public Company Limited (SET: AAI) rose 2.35% to settle at THB4.36 per share.
