Export competitiveness analysis of Thailand plastic resins to Chinese market

Abstract

The aim of the research was to quantitatively and qualitatively analyze Thailand’s competitiveness in exporting plastic resins to China and to develop a strategy which will help increase the nation's plastic resins export potential to China. Quantitative Analysis includes a comparative advantage analysis of Thailand's plastic resins exports to the Chinese market using the Revealed comparative advantage (RCA), as well as a Constant market share (CMS) analysis utilizing annual time series data from 2012 to 2020. The Qualitative analysis uses Porter’s diamond model, SWOT and TOWS analysis study to factors that affect the plastic resins industry's competitiveness and develop a strategy which will help increase the nation's plastic resins export potential to China from a broad perspective. The Revealed comparative advantage (RCA) and Constant market share (CMS) in plastic resins exports from 2012 to 2020 reveal that Thailand has an RCA value more than one in the Chinese market while global market's expansion and increase in demand is the key factor to maintain market share in an international market for plastic resins. Furthermore, high-efficiency of Thailand labor market also plays a key role to attract investment from important operators. However, there are still weaknesses that must be addressed, such as research and development of technological skills, which must be coordinated between the public and private sectors, in order to maintain the export industry's competitiveness and future growth potential.