Mr. Rak Worakijpogathorn, Managing Director EXIM BANK of Thailand There are 18,000 eco-trade operations to export to important markets in the world, and these green walls increase by an average of 16% every year.
Examples of measures implemented in 5 major export markets:
1. For example, the United States is developing the Clean Competition Act (CCA) to impose a carbon tax on products whose production processes have high carbon emissions. It is expected to come into effect by 2025.
2. The European Union (EU), like the Carbon Border Adjustment Measure (CBAM), is in force from October 2023 in pilot product groups including iron and steel, aluminium, cement, fertiliser, electricity, hydrogen. Entered into force on 1 January 2026
3. China, for example, bans the use of non-biodegradable plastics.
4. Japan, for example, requires businesses with packaging to pay a recycling fee.
5. For example, India bans the use of single-use plastics.
Meanwhile, according to data from the International Monetary Fund (IMF), in 2021, the proportion of Thailand's environmentally friendly product exports was 7.6% of total export value. This is lower than many other countries such as Germany (15.4%), Japan (15%), China (10.4%) and South Korea (10.2%).
“Thai entrepreneurs must adapt to new opportunities in the global market by penetrating markets in demand for Thai products and raising the quality and value of their products. Especially food, beverages, home appliances, gadgets and eco-friendly products.”
Loans to support green supply chains
By 2024, EXIM BANK aims to go the extra mile by promoting its role as a green growth bank and promoting green credit innovation. (Greenovation) aims to promote Thailand's export products into environmentally friendly products or green products.
Including creating an export ecosystem that is environmentally friendly from upstream to downstream (green export supply chain).
EXIM BANK supports green export supply chain loans at special interest rates starting at 3.85% per annum to end buyers of entrepreneurs across the export-related supply chain. Helping small, medium and large entrepreneurs access capital at low cost. By specifying the interest rates charged by large operators (sponsors).
“Exim Bank is a leader in financial services. 1-2-3 Support loans to help reduce greenhouse gases across all objectives, i.e. support for making production processes cleaner. Using renewable energy and helping suppliers conduct business in an environmentally friendly manner.
Thai exports are expected to rise by 3%
Especially in the product groups of processed food, beverages, home appliances, electric cars, gadgets and eco-friendly products, Thai exports are likely to expand by 3% in 2024 for the first time in 2 years, said Mr. Rock added. . That's added value and consumers around the world are ready to buy
With supporting factors from 2024, the world economy and world trade will expand by 3.2% and 2.8%, respectively, thanks to global oil prices and various commodity prices. tends to increase thereby causing the price of export goods to increase accordingly.
Also, Thailand is not a belligerent country, and has a neutral position, thus benefiting from trade from geopolitical conflicts, especially processed food products.
However, we still need to monitor the uncertainty surrounding geopolitical conflicts. Slow recovery of the manufacturing sector and high levels of household debt
Expand the green port
EXIM Bank approved new loans of 5,853 million baht, with outstanding loans and commitments of 174,196 million baht, with an increase of 11,474 million baht, or an increase of 11,474 million baht, for EXIM Bank's operating results in the first quarter of 2024 (Jan. – Mar. 2024). Compared to the same period last year.
67,310 million baht in outstanding loans and ESG obligations is 38.64% of the total amount. and increased by 55.19% over the same period last year. Of this amount, 12,475 million baht are SMEs.
Meanwhile, outstanding loans and investment commitments totaled 127,516 million baht, an increase of 7.14% over the same period last year. Outstanding loans and commitments in international projects of 50,210 million baht while classified as important markets, Thailand continues to help businesses expand into CLMV and New Frontiers countries. CLMV and New Frontiers groups have outstanding loans and obligations of 43,257 million baht.
In addition, EXIM Bank's export and investment insurance business volume was 54,092 million baht, an increase of 7.45% over the same period last year.
By the end of March. 2024 EXIM Bank has 5,607 customers of which 81.15% are SME customers.
Meanwhile, EXIM BANK lays emphasis on sustainability of financial management. There were 8,600 million baht in non-performing loans (NPLs), which represents the ratio of non-performing loans to total loans (NPL ratio) at the end of March. 2024 is equal to 4.99% and is at a strong level for expected loan losses (expected loan loss) of 15,972 million baht. The ratio of expected loan losses to non-performing loans (coverage ratio) was calculated at 185.72%.
As a result, at the end of the first quarter of 2024, EXIM Bank's operating profit was 805 million baht, an increase of 18.71% compared to the same period last year. and net profit of 132 million baht
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