Scepticism over govt's export target
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Private sector, central bank say 15% figure unrealistic in light of euro crisis
The Yingluck government insisted yesterday that the country’s export growth target would remain unchanged at 15 per cent this year despite the worsening euro-zone crisis.
Five of the 17 Euro-zone economies have already sought bail-outs from the European Union, prompting exporters to worry if shipments to European markets will drop significantly in the second half of this year.
In response to this challenge, the government has set up six committees to drive export growth to achieve the target of 15 per cent. But the private sector is less optimistic.
Bank of Thailand governor Prasarn Trairatvorakul said the country would be fortunate if it could achieve an export growth rate of 8 per cent this year.
Yingluck admitted that the 15-per-cent growth target was a big challenge.
“However, the government will not adjust the target setting, but will change some action plans,” she said.
Deputy Prime Minister Kittiratt Na Ranong said the first committee would monitor tariff barriers, rules and regulatory obstacles, while the second would monitor the situation in Europe as bilateral free-trade talks may start soon to increase market penetration.
The third working committee would focus on driving exports for each industry, looking at trade in goods and services.
The fourth panel would look to boost exports to Asean and nearby countries, as well as support investments from Thailand to neighbours in order to boost Thai industrial growth.
The fifth would seek to drive exports to East Asian and North American markets. The sixth panel would look at boosting exports to new markets – mainly in Africa, Latin America, the Middle East, Russia and India.
To urgent push exports, the government has already allocated Bt100 billion of “soft loans” for small businesses, and set aside a fund worth Bt40 billion to insure against export risks this year.
Commerce Minister Boonsong Teriyapirom said a working committee would be set up within two weeks. An action plan to counter export barriers and drive export growth in each market would be done soon. It would be made up of representatives from the government, private sector, and the Thai Trade Representative.
Paiboon Ponsuwanna, chairman to the Thai National Shippers' Council, said although the government had set a high target, the country was only likely to boost exports by 12 per cent this year.
Phongsak Assakul, chairman to the Board of Trade, said exports would grow only by 10 per cent this year as there were many obstacles. To boost exports, the government should support opening Customs post operations for 24 hours.
Surapong Paisitpatnapong, vice chairman to the Federation of Industry’s Automotive Industry Club, said car exports to the EU would drop from 9 per cent last year to 6.5 per cent this year due to the financial slowdown in Europe.
