According to the Observatory of Economic Complexity
(OEC), in 2023, Thailand exported a total of USD 319
billion worth of goods, giving it the 25th spot on the list
of exporters in the world. The most common destinations for
Thai exports are China, Japan, the United States, Australia,
and Malaysia.
With such a bustling trade economy, the announced and
recently implemented tariff measures from the United States
are anticipated to make the price of goods higher. Why? At its
core, a tariff is a tax placed on imported products. This raises the
domestic price of foreign goods, which affects imports because
countries with imposed tariffs will face lower export demand.
The United States has imposed a 36 percent tariff on Thailand’s
exports. This is particularly taxing because Thailand is primarily
an import-export economy. Exports account for 65 percent of
the country’s GDP, and the United States accounted for 19
percent of total exports (a whopping USD 55 billion).
So, how are businesses coping with these tariffs? Masala spoke to
a few key figures in the B2B sector, and these are their thoughts.
Shitanshu Sharma
Sales Manager, ROHA DYECHEM Thailand
Tell us a little more about your company, ROHA DYECHEM,
and what you do. What are some items your manufactured
products can be found in that we wouldn’t expect?
ROHA is the flagship company of the JJT Group. It is a global
leader in the manufacturing and distribution of synthetic and
natural food colours, dehydrated ingredients, and industrial dyes
and pigments. ROHA has a presence in over 22 countries. Most
consumers associate synthetic food dyes with candies or beverages,
but surprisingly, our colourants are also used in products such as
pharmaceutical tablets, pet food, the toy industry, cosmetics, bath
bombs, and even seed coatings in agriculture.
As Thailand is a predominantly import/export economy,
what sort of competition do you face in your industry?
In our sector, we face competition from both global chemical
giants and regional manufacturers, especially from China and
India. These countries often benefit from larger production scales,
cheaper labour costs, or subsidised manufacturing. However,
Thailand’s strength lies in quality assurance, stringent food safety
norms, traceability, microbial testing, and a strategic location in
the ASEAN region, which we leverage to remain competitive.
Before the tariff imposition, what was the state of exports
in your business?
Before the tariffs, our exports were steadily expanding, particularly
to Asia, the USA, and parts of Europe. Demand was driven by the
growing processed food sector, and we benefited from long-term
relationships with our suppliers and trade agreements that allowed
for competitive pricing. We have just started penetrating new
markets like the Middle East and Africa.
Did your business have contingency strategies already
in place for hectic economic situations? How does your
business plan to navigate these tumultuous economic
times?
Yes, we maintain a multi-tiered contingency plan including
diversified sourcing of raw materials, flexible contract manufacturing,
and a strategic reserve of high-demand raw materials secured by
long-term contracts. We also invested early in manufacturing set-
ups in Thailand, Vietnam, Indonesia, Australia, etc. This provides
proximity to customers in the Asia region.
In response to current volatility, we’re focusing more on value-
added products, enhancing direct-to-consumer channels, and
exploring ASEAN regional partnerships to reduce dependency
on vulnerable trade routes.
How can these tariffs be seen in a positive light? Is now the
time to nurture relationships with other export partners?
Tariffs have forced us to reassess our operational agility and pushed
us to innovate. They’ve encouraged us to strengthen ties with
closer markets and less tariff-affected regions. This is indeed the
right time to nurture deeper relationships with emerging markets
in Africa, South Asia, and within ASEAN itself, where demand is
rising but competition is still manageable.
If the tariffs are not eased come July, where do you see
the future of businesses in Thailand that deal with exports
heading?
If tariffs persist, export-reliant businesses will need to become
more strategic. We foresee a shift towards localised production
models and joint ventures in target markets to bypass tariff costs.
Thai exports may also further invest in R&D regarding innovation,
customer-first-centric approaches, and service mindfulness to
compete, rather than depend on price alone.
Is there any advice you would give to other businesses
that are going through similar situations?
We can’t wait for economic stability. External factors affecting
business need to be understood while making any export decision.
Continually updating PESTLE factors and staying focused will
inculcate our organisation’s vision and ability to do business.
Diversify your customer base, invest in process efficiency and
technological aspects, and keep a close eye on geopolitical trends.
Be mindful about forming strategic alliances, both locally and
globally. Most importantly, leaders need to be transparent in their
communications as the trust of stakeholders and their flexibility
are your most valuable profit margins in times like these.
Rajeev Mathur
Managing Director of Fenatex
Tell us a little more about your company, Fenatex, and
what you do.
Fenatex, established in 1992, is both a textile trading company and
a manufacturer of woven and knitted fabrics, including denim.
Based in Thailand, we also focus on garments for the domestic
market—mainly denim and non-denim bottom wear. We handle
the entire value chain: sourcing yarns, manufacturing fabrics, and
supplying finished products. On the trading end, we specialise in
sourcing and exporting certified yarns and fabrics. We aim to be
a one-stop textile solution for clients, locally and globally.
Seeing as how Thailand deals predominantly in imports
and exports, how much do these things make up your
overall business?
They’re the foundation of our business—over 90 percent of what
we do involves international trade. We import yarns and fabrics
primarily from China, India, Indonesia, Malaysia, and Vietnam,
and in turn, export fabrics and garments to various countries. We
supply our products within Thailand and to neighbouring countries
like Laos, Myanmar, and Cambodia, both directly and indirectly.
Before the tariff impositions, what did exports look like
for your business?
The U.S. has never been our direct focus market, so we weren’t hit
by tariffs head-on. However, many of our customers export to the
US, so we’ve felt the indirect impact, especially with tighter margins
and more cautious buying. Before that, the flow of production was
smoother: lower freight, more predictable timelines, and simpler
documentation. These days, due to the uncertainty of the tariff
situation, it is more volatile, and we’ve had to stay flexible.
Which countries do you conduct business with the most?
We’re active in South Asia, Pakistan, India, Sri Lanka, and
Bangladesh, as well as Turkey. These are key textile hubs for
both raw material sourcing and exports. Outside Asia, we supply
our product to South America, North Africa, and East Africa. In
Thailand, we also sell throughout the country and to nearby regions
through both direct channels and distributor networks.
Does your business have strategies, either pre-existing or
newly created, in place to deal with economic situations
like this?
Yes, we’ve made several strategic adjustments. First, we’ve diversified
into different yarn types and fabric constructions—woven, knitted,
polyester, cotton, denim—to serve broader needs. We’ve also
expanded into garments, focusing on bottom wear. On top of that,
we keep our inventory lean and manage all warehousing internally,
which helps us to stay agile and in control of costs.
Certification is becoming a big part of our risk management going
forward, allowing us to differentiate in a saturated market. As a
part of this, we are pursuing Global Recycled Standard (GRS),
Recycled Claim Standard (RCS), and Organic Content Standard
(OCS) certifications to strengthen our sustainability credentials.
Where do you think the future of exports will be heading
in Thailand with these economic limitations? Should we
start looking in other places for business?
Textile is becoming a challenging sector in Thailand, especially
with a strong THB making exports less competitive. Business
overall is becoming riskier by the day. To stay ahead, we have to
evolve—offering not just price but value, traceability, and niche
solutions. New markets like Latin America, Africa, and parts of
Eastern Europe as less saturated and open to fresh partnerships.
We’ve already started looking in these directions.
What advice would you give other businesses going
through similar situations?
My advice is simple—adapt early and diversify. Build multiple
revenue pockets: don’t rely on just one product or market. Focus on
certifucations, product quality, and strong supply chain relationships.
Withal, don’t ignore the domestic market: it still holds potential if
approached correctly. Business advice aside, you must also protect
and strengthen your mentality. This business is getting tougher,
and a clear head is your best asset.