New commerce chief will back status quo

The Cabinet appointed Vatchari Vimooktayon as the ministry’s new permanent secretary to replace Yanyong Phuangrach, who will retire at the end of next month.
Other high-level C-10 appointments included the following directors general: Piramol Charoenpao of the Trade Negotiations Department, Srirat Rastapana, of the International Trade Department, Wiboonlasana Ruamraksa of the Internal Trade Department, and Pranee Siriphand of the Foreign Trade Department.
As well, three new deputy permanent secretaries were named: Noppadon Sarawasi, Nuntawan Sakuntanaga and Boonnaris Suwannapool.
Only directors-general Pajchima Tanasanti of the Intellectual Property Department and Banyong Limprayoonwongse of the Business Development Department saw their powers remain unchanged.
A number of these new appointees lack well-rounded experience, particularly the new permanent secretary herself. Vatchari’s experience has been only in the Internal Trade Department, dealing with domestic consumption and the prices of goods. Piramol has also worked only in a single department, International Trade, while Pranee has experience only in the Foreign Trade Department.
On the other had, Srirat does have wider experience, from the Trade Negotiations and International Trade departments and the Office of the Prime Minister, while Wiboonlasana has worked with the Trade Negotiations and Intellectual Property departments.
Anyone promoted to head the Commerce Ministry should be an all-around person with knowledge based on management of different departments, enabling him or her to cope with both macro- and microeconomic challenges. As it is one of the country’s leading economic ministries, the government ought to consider finding the right person for the job rather than merely picking someone it can control.
This is even more the case currently, as Thailand will face crucial trade negotiations, not only under the Asean Economic Community but also on bilateral and multilateral pacts. In particular, regional trade talks will become more complicated and difficult to reach agreement on.
Although the government wants to solidify the domestic economy amid the slowing of the global economy, exports are still the Kingdom’s core economic driver. Vatchari’s appointment will facilitate the government further implementing its populist policies, but it cannot expect these to become the economy’s main foundation overnight. The ministry needs to have specialists on the macro and micro economies and international trade negotiations.
During the past two decades as the ministry undertook international trade negotiations against unfair trade practices by developed countries, Thailand was led by many trade experts, all of whom were former Commerce permanent secretaries. These included Barj Isarasena, Charae Jutharattanakul, Sompol Kiatpaibool, Krirk-krai Jirapaet and Karun Kittistaporn. Their knowledge and experience were widely accepted not only among senior Thai officials but also in the international arena. They led Thailand to win many trade disputes.
Any appointment at this level should consider qualified officials rather than someone who will respond obediently to the government’s commands.
To date, Vatchari’s major service to Pheu Thai’s policy was to set up Thook Jai Shops to sell low-priced goods. As director-general of the Internal Trade Department, she worked hard on pushing this idea. The populist project has reportedly cost Bt1.32 billion thus far.
On the matter of price controls, a policy launched by the previous government of Abhisit Vejjajiva, Vatchari has done little of note, but what she did do was in response to the government’s commands, so that was satisfactory to the administration.
Vatchari gave an interview to the media yesterday, saying she would further the government’s policy to monitor consumer spending closely and also work with exporters to boost shipments.
“The government has stressed that I should focus on the country’s internal tasks, particularly people’s consumption by reducing their expenses through [controlling] the prices of goods, farm goods in particular,” she said.
Vatchari will enjoy this reward as the Commerce Ministry’s head for only one year, as she will retire in 2013.
Prasith Boonchuey, president of the Thai Rice Farmers Association, has expressed concerns about the future of the ministry and trade growth, saying that the new permanent secretary had only worked to serve politicians.
“When Vatchari was director-general of the Internal Trade Department, she lacked clear plans and solutions to rising prices and managing agricultural goods. Many challenges are waiting for her as the new chief of the ministry,” Prasith said.
The president of the Thai National Shippers Council, Paiboon Ponsuwanna, said the private sector had high hopes that the ministry would closely cooperate with it, as the ministry could not rely on only one person.
However, he expects that Vatchari will not ignore export promotion because restructuring the economic base towards domestic spending would not be easily achieved in a short period. Vatchari must prove her ability to promote exports amid severe global challenges and rising non-tariff barriers, he said.