In recent years, Thailand’s cotton yarn exports have continued to expand. According to Thai official statistics, Thailand’s cotton yarn exports increased from 3.364 billion baht to 4.885 billion baht from 2008 to 2014, a year-on-year increase of 31%. Among them, Thailand’s cotton yarn exports reached a historical high of 5.798 billion baht in 2013. In addition to China, Japan, Hong Kong, and South Korea are the main destination countries for Thai cotton yarn exports. Currently, Thai cotton yarn exports to the above-mentioned countries are in a growth trend.
The growth trend of Thailand’s cotton yarn exports to China is basically consistent with Thailand’s overall export trend. From 2008 to 2014, the amount of Thai cotton yarn exported to China increased from 587 million baht to 2.276 billion baht, a year-on-year increase of 74%. The highest export amount in 2013 was about 3.176 billion baht, accounting for more than half of Thailand’s total cotton yarn exports. At the same time, Thailand’s cotton yarn exports to Japan have also maintained a steady growth trend, increasing from 577 million baht in 2008 to 1.261 billion baht in 2014, a year-on-year increase of 50.4%. On the contrary, Thailand’s cotton yarn exports to the United States and Malaysia have continued to decrease since 2008, with decreases of 73% and 71% respectively.
In the first half of 2014/15, affected by the weakening demand for cotton yarn and cotton cloth at home and abroad, the operating rate of Thai factories was only 63%, and cotton imports and consumption decreased significantly. On January 1, 2015, the EU’s most-favored-nation status for Thai textile and clothing exports expired, and the tariffs exported to the EU rose sharply from 2.4% to 12%. Imported textiles from China and South Korea had an impact on the Thai textile industry. As domestic textile and clothing factories close down due to lack of competitiveness, Thailand’s cotton consumption and imports will continue to decline later this year.
