Rice is one of the major export goods of Thailand. However, concerns over Thai rice exports have been ignited upon the upcoming formation of the ASEAN Economic Community (AEC) in 2015 as Thailand might lose rice market, at least in the ASEAN region to its fellow ASEAN friend, Vietnam.
Center for International Trade Studies (CITS) Director Dr Aat Pisanwanich from the University of the Thai Chamber of Commerce reported the studies on impacts of the AEC formation to the Thai rice market. He elaborated that Vietnam, which is the major rival of Thailand in rice exports, has the chance to take Thailand’s place as top rice exporter to the ASEAN markets if export tariff is cut to 0% in the AEC formation in 2015. He also pointed out that Thailand will be at risk of losing market shares, notably in the Philippines and Malaysia, which are important export targets of Thailand.