Thai traders anxious over ‘influx’ of Chinese produce as progress to extend belt and road railway slows

With the Laos part of the Kunming to Singapore rail project up and running, Thai traders struggle to compete as Chinese imports arrive faster and fresher than ever

Thailand’s section of the railway remains mired in delays, raising concerns that the country could lose its hub status to its neighbour

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A Lao trainee learns signals from her Chinese mentor ahead of the opening of the Boten-Vientiane high-speed rail. Photo: Xinhau

Published: 8:15am, 19 Jan 2022Updated: 10:33am, 20 Jan 2022

A month after the opening of the Boten-Vientiane high-speed railway in Laos, businesses in Thailand are growing anxious over an influx of Chinese goods and agricultural produce.

At Thailand’s largest fresh market Talaad Thai in a Bangkok suburb, seller Prayat Charoen has noticed an unusual abundance of Chinese vegetables ever since the opening of the railway, which runs from Laos’ border with China nearly all the way to its frontier with Thailand.

While broccoli, cabbages and other winter produce from China have been staples at his shop for the past decade because of Thailand’s year-round tropical climate, in the past month a surge of imports has pushed down the prices of Thai vegetables.

“Chinese vegetables have automatically forced Thai growers to reduce their prices, otherwise they cannot compete,” he said.

Prayat expects the prices of Thai produce to pick up in the summer season, when local greens have traditionally dominated the stalls. However, he fears that in the long run cheaper Chinese produce could overwhelm the Thai market, leaving Thai growers vulnerable.

Sections of the Kunming to Singapore railway running through China, Laos, and Thailand.

Trade headaches

Prayat’s anxiety follows the December opening of the high-speed railway, which has made it easier and faster to import Chinese vegetables in greater amounts.