Business leaders warn Vietnam’s rapid rise, backed by strong government support, could soon surpass Thailand across multiple sectors
Thai entrepreneurs are voicing concern over the country’s slipping grip on agricultural exports, warning that Vietnam’s rapid rise, driven by consistent government policy and strategic investment, could soon push it ahead of Thailand in the sector.
Smith Taweelerdniti, Managing Director of Nithi Foods, said that while Thailand had previously led ASEAN in agricultural exports, Vietnam has rapidly closed the gap through targeted investment in food tech and agriculture.
"Vietnam offers strong tax incentives that attract more investors than Thailand. Its domestic market is large, and while wages are lower, purchasing power remains solid,” he said.
Vietnam also competes directly with Thailand in key export markets like the US and China, he added.
According to Vietnam’s Ministry of Agriculture and Rural Development, the country’s agricultural exports are projected to hit a record USD 62.5 billion in 2024, up 18.7% from last year.
Fruit, rice, coffee, and cashew nuts are among the top drivers.
Thailand, meanwhile, forecasts a 5.4% increase in agri and agro-industrial exports to USD 52.19 billion, led by fruit, rice, rubber, chicken, and cassava, according to the Department of International Trade Promotion.
Rungphech Chitanuwat, ASEAN Regional Portfolio Director at Informa Markets, said Vietnam has already overtaken Thailand in exports of rice and fruit.
She attributed this to Vietnam’s decisive government, strong education investment, and infrastructure upgrades.
In contrast, she said Thailand’s sluggish bureaucracy, shifting policies, and ageing population pose long-term challenges.
“If this continues, Vietnam could surpass Thailand in multiple sectors within 3–5 years,” she warned.
Thai-language media have also expressed concern among Thai businesses, pointing to Vietnam’s ST25 rice variety, which won the World's Best Rice 2023 award, as a symbol of the growing competitive edge.
Source: The Nation
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
