Analysis of Thailand's Sugar Production and Export Competitiveness to China A Case Study under the ASEAN–China Free Trade Agreement (ACFTA)

Abstract

This study analyzes the competitiveness of Thailand’s sugar industry in exporting to China by integrating theoretical frameworks and empirical evidence from in-depth interviews with 15 sugar factories nationwide. The analysis applies comparative advantage theory, the Heckscher–Ohlin model, Porter’s Five Forces, PESTEL, and transaction cost theory to evaluate Thailand’s cost structure, logistics efficiency, and sustainability potential relative to major competitors—Brazil, India, and Australia. The findings indicate that Thailand maintains competitive advantages in logistics distance, production stability, and ACFTA tariff privileges, but still faces weaknesses in burnt-cane supply, high domestic logistics costs, and inconsistent raw-material quality. Empirical results show that sustainability practices, especially non-burning cane, biomass utilization, and participation in T-VER carbon-credit programs, significantly enhance export competitiveness by reducing costs and improving ESG performance demanded by Chinese buyers. Strategic recommendations include strengthening traceability, promoting premium-grade sugar, improving farm-level logistics, and leveraging carbon-credit mechanisms as new value creation.