Export Promotion Dept seeks big budget boost

The Commerce Ministry department is seeking Bt4.16 billion, up from Bt2.59 billion in the last budget.

The money is to be used to develop its organisations to facilitate exporters and pursue higher-value-added products.

Deputy Commerce Minister Siriwat Kachornprasart said that although the government was focused on boosting the domestic economy, it would not ignore promotion of export growth, as it is still a major engine of the economy.

"To continue promoting export growth, higher-value-added products such as organic [crops and foods] and innovative goods will be promoted," he said.

"The department will highlight more activities in potential new markets to compensate for slower export growth to traditional markets such as the United States and the European Union."

Although some negative factors will affect global trading into next year, Thai exports should gradually increase on strong demand in many emerging markets, particularly Asean, China and the Middle East, he said.

Thai shipments surged by 25.7 per cent to US$136.49 billion (Bt4.088 trillion) in the first seven months of this year, a higher rate than the 15-per-cent full-year target for expansion to $224 billion.

The ministry will set a growth target for next year by the middle of this month based on a meeting with 65 overseas trade officials.

The Export Promotion Department budget for next fiscal year will be mainly spent on organising more than 400 activities locally and overseas.

About Bt400 million will be used to set up a centre for developing value-added products for export, and Bt200 million to support Thailand's Trust Quality Mark - a project to improve the quality and reliability of Thai brands.

Nuntawan Sakuntanaga, director-general of the department, pointed out that economic sluggishness in the US and EU, higher production costs and higher interest rates were major concerns affecting export expansion next year.

The department's limitations in manpower to assist exporters have also obstructed operations of many activities.

However, strong economic growth in emerging countries and more acknowledgement of the quality of Thai goods will help promote exports next year, she added.

Meanwhile, the Business Development Department plans to upgrade its electronic services to encourage more small and medium-sized enterprises to do business in Asean ahead of the seamless market set for 2015.

Siriwat said the government would continue with its effort to make Thailand one of the world's 10 easiest countries in which to do business within the next few years.

The World Bank currently ranks Thailand 19th out of 183 countries and territories in terms of ease of doing business, slipping from 12th last year because of complicated customs procedures.