Sinosure Thailand: Boosting Imports from China with Export Credit Insurance

Situated in Southeast Asia, Thailand has formed a strong trading partnership with China. Among ASEAN countries, China is Thailand's largest trading partner, while Thailand, in turn, ranks as China's third-largest trading partner.

The bilateral trade dynamics continue to grow annually. As reported by the Chinese Embassy in the Kingdom of Thailand, the bilateral trade volume in 2022 reached 135 billion US dollars, showing a year-on-year increase of 3%. China's exports amounted to 78.48 billion US dollars, marking a year-on-year increase of 13.4%, while imports totaled 56.22 billion US dollars, indicating a year-on-year decrease of 8.6%.

From January to October 2023, the bilateral trade volume reached 105.1 billion US dollars.

Data from the Observatory of Economic Complexity (OEC) reveals the top products in China's export basket to Thailand. In October 2023, these include telephones, computers, motor vehicles and accessories, integrated circuits, and coated flat-rolled iron.

However, there's a challenge for Thai businesses dealing with Chinese suppliers—many struggle with not having enough working capital for day-to-day operations.

This leads them to look for short-term credits to effectively manage their cash flow while sustaining their trade dealings with China. This is where Sinosure steps in to make a difference. By offering export credit insurance, Sinosure makes it easier for Thai importers to get the credit they need from their Chinese suppliers. Let's explore how Thai companies can benefit from their association with Sinosure.

Sinosure, a Chinese state-owned insurance company, specializes in providing export insurance for Chinese exporters. Its primary assurance is that suppliers will consistently receive payment for their goods, even if overseas buyers in Thailand fail to meet their payment obligations. This reliability empowers Chinese suppliers to extend trade credits to their partners in Thailand.

Here's a streamlined workflow illustrating how Sinosure works with companies in Thailand:

Credit Assessment: Thai importers undergo a thorough Sinosure evaluation to determine their creditworthiness.

Credit Rating: Importers are assigned a credit rating based on the comprehensive evaluation.

Credit Limit: Following the evaluation, Sinosure establishes and grants a credit limit to the importer.

Contract Registration: Chinese exporters register their contracts with the insurance company.

Invoice Insurance: Exporters obtain insurance for the invoice through Sinosure.

Deposit: Importers make a deposit for the requested goods.

Goods Delivery: Suppliers in China deliver the goods without demanding immediate payment.

Payment: After a deferred payment period, Thai importers settle the necessary payment.

With Sinosure's guarantee, Thai businesses can broaden their trade opportunities with Chinese partners, boosting economic ties and fueling growth across diverse industries.

Yet, in Thailand, companies might face challenges in Sinosure credit estimation due to differences in financial disclosure practices. At Axton Global, we recognize these differences and make sure they won't block your chance to secure a Sinosure credit limit.

Our approach makes the approval process easier. We gather essential documents manually, upload them securely, and help with your credit limit application. With our services, you can navigate the Sinosure credit evaluation smoothly and efficiently.