EXIM Thailand Brings Thai Entrepreneurs Weathering ‘Trump 2.0’ to Develop Green Export Supply Chain Ecosystem alongside Performing as Financial Advisor to Build Green Economic Warriors on Global Trade Front

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Mitihoon – Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that the current economic world is evidently surrounded by uncertainties after the beginning of the second Donald Trump administration, or the so-called Trump 2.0 era, in international political, economic and social dimensions, including impacts on global climate ambitions. However, Thai economy tends to stay on track supported by tourism, public spending, consumption, investment and export, which have continued expanding. Meanwhile, there remain certain risks like a new round of trade war between the US and counterpart countries according to Trump 2.0 policy, household debts of as high as 89% and the not yet recovered manufacturing sector.

EXIM Thailand President said that factors supporting further export growth in 2025 under the prevailing global economic circumstances and in the Trump 2.0 context are accelerated imports of countries around the world, hence opportunities for Thai goods to substitute for Chinese goods, such as computers, auto parts, rubber products, air-conditioners, furniture and solar panels; popularity of Thai goods in the world market, e.g., farm and food products and lifestyle products; relocation of foreign production bases to Thailand, e.g., digital business, electronics and electric vehicles; expansion of new frontier markets like India, ASEAN and the Middle East; and adoption of FTA under European Free Trade Association (EFTA) – the first free trade agreement between Thailand and European countries (Switzerland, Norway, Iceland and Liechtenstein). Meanwhile, there are certain risk factors to be aware, comprising possibility for Thai goods to be subject to the US trade measures, particularly collection of US import duties on the imported goods that significantly cause the US trade deficit, such as computers and peripherals, telephones, machinery or those forced to be additionally imported, e.g., farm products, oil and natural gas; impacts on Thai goods in Chinese supply chains, such as electronics parts, automobile, chemicals and rubber; likelihood of Thai goods facing fierce price competition with influx of Chinese goods to Thailand and global markets, such as consumer goods, electrical appliances, steel, aluminum and chemicals; and cost volatility due to geopolitical tensions and ongoing foreign exchange fluctuations.

Dr. Rak further said that besides global economic uncertainties that have hurt Thai economy, global environmental problems have intensified and impaired human beings as well as business sectors. Global temperatures have kept rising along with the increasingly severe natural disasters and PM 2.5. The number of global environmental trade measures has accordingly increased to more than 18,000 at present, and a larger amount of climate finance is needed. According to Climate Policy Initiative, global climate finance in 2023 was approximately 1.5 trillion US dollars. Although such amount has successively risen throughout the past six years, it is still lower than demand which is estimated at around 7.4 trillion US dollars per year over 2024-2030, which can be interpreted that an around fivefold increase is required in climate finance amount.

EXIM Thailand President further said that EXIM Thailand has been vigorously supporting Thailand’s climate finance and will continue to enhance its expertise in its role as a Green Development Bank, taking the lead in helping Thai entrepreneurs stretch their wings and expand toward ecofriendly businesses both at home and overseas. It aims to drive Thai business sectors’ transition to a low-carbon society, hence a consistent increase in the proportion of environmental, social, and governance (ESG) loans in its loan portfolio to 40% at present, and targeted to reach 50% by 2027.

Dr. Rak said that in 2025, EXIM Thailand will remain steadfast in advancing Thai businesses through its expertise and alliances toward being a sustainable bank. The Bank will expedite the expansion of its customer base with offering of new products and services supporting both exports and investments in the development of green export supply chains. Privileges and special interest rates are made available for Thai entrepreneurs engaging in businesses with ESG concerns taken into account. One of the EXIM Thailand’s new services is bond guarantee service for customers seeking to raise funds through bond issuance but lacking sufficiently high credit ratings to attract investment interest and confidence of investors, particularly institutional investors. With bond guarantee, the issued bond will receive a credit rating at the level equivalent to that of EXIM Thailand, i.e., AAA (in the case of 100% guarantee), which is on a par with sovereign rating. This will build up confidence among investors while maintaining bond interest rates at low levels, hence cost saving for bond issuers compared with bond issue based merely on the issuers’ own ratings. The bond can also be issued in a larger size, carry a longer tenor, and have institutional investors as its investor base. In addition, the Bank offers services as a financial advisor for customers with fund-raising intention via issuance of debt or equity instruments as well as business mergers & acquisitions (M&A), and so on. At present, EXIM Thailand has been approved by Office of the SEC to provide financial advisory service since October 2, 2024. Looking ahead, the Bank plans to serve as a lead underwriter for bond issues, rendering underwriting service to customers seeking to raise funds via bond issue. It is another product that can respond to customer needs on a full-fledged basis, making available more fund-raising and capital acquisition options for customers. The Bank is currently in the process of applying for a securities business license (bond underwriting).

“EXIM Thailand will keep developing business and service innovations toward new business models that can best respond to customers’ demand both financially and non-financially. This aligns with trade and investment direction of the current world in the context of Trump 2.0, and amid uncertainties but also fresh opportunities for trade and investment of Thai entrepreneurs who are resilient, adaptable and efficient in international business risk management planning,” added Dr. Rak.

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