Mae Sot district in Tak is a border trade gateway between Thailand and Myanmar. (Photo by Assawin Pinitwong)

Both Thailand's trade with neighbouring countries and its transit trade increased slightly in January, the Foreign Trade Department said on Monday.

The department said combined border and transit trade accounted for 119 billion baht, up 1.84% from the same period of last year.

Cross-border trade with neighbouring countries in January was 95 billion baht, down 0.91%, but the drop was offset by transit trade with southern China -- which leapfrogged 49% to 10 billion baht.

Imports of goods in transit to other countries from southern China was 7.15 billion baht, while in-transit exports were 2.85 billion baht.

Malaysia still ranked first in Thailand's border trade, while China topped transit trade, followed by Vietnam and Singapore.

Thai trade with southern China largely passed through northern Laos and Yunnan province.

The department projected border and transit trade would reach 1.6 trillion baht this year, up 15% from 2018.

Department director-general Adul Chotinisakorn identified global economic uncertainty, the prolonged trade spat between China and the United States and the baht's appreciation as obstacles to attaining the trade goal.