Chatchai unveils key strategies to boost exports

Due to uncertain internal and external factors, General Chatchai said this government would emphasise on strengthening the economy.

He said that despite the changing global economic landscape and uncertainty factors, export would still be a key economic driver for Thailand in the next three to five years. After that, Thailand’s economic structure would be changed to rely more on the domestic market, including cross-border trade, as it was less volatile and more sustainable.

To promote a stronger economy, Chatchai said he would campaign to make Thais realise and use more Thai products and services. The government will invest more on R&D in agricultural product development. For instance, Thailand is the world’s leading rubber exporter, but the country has no brand products or large-scale rubber manufacturing plants.

“From now on, the government will focus on encouraging enterprises to focus on R&D and create own-brand products, while encouraging Thais to use local brands. Many campaigns to encourage Thais to use locally made products and services will be launched soon,” he said.

To ensure sustainable export growth, the ministry will also encourage Thai manufacturers to produce goods that serve the specific demand of each target market. To do so, the Thai government will closely cooperate and discuss with the target market to produce goods to serve their demand.

 For example, Thailand and India have recently agreed to promote trade and economic growth under the “Twin City” concept, under which Thailand will promote Surat Thani province along with Surat Thani province of India.

The ministry will also encourage Thais to produce goods based on ‘green’ consciousness and the rising number of ageing people in some targeted markets such as Japan.

To promote exports in each market, the ministry has also drawn up a specific strategy and set up priority for some goods.

For Cambodia and neighbouring countries, the ministry will promote Thai products using Thai cine stars, as neighbouring countries love Thai soap opera.

The ministry will also promote particular export products and services in each target country. They are: Thai restaurants in Vietnam; medical equipment and products in Nigeria and Africa markets amidst the Ebola outbreak; second hand vehicles in Latin America; Thai boxing in Hong Kong, and hom mali rice (jasmine rice), frozen foods in Russia; and hospital and spa services in Indonesia.

The ministry will also encourage more export of construction materials to Myanmar, as the country is seriously developing its infrastructure.

Chatchai said the ministry would regularly set up trade missions so that Thai enterprises can target export countries where they find new opportunities for their products and services. He said he was confident that Thai shipments this year would not contract.

Although Thai exports might see flat or marginal growth this year, Chatchai said shipments next year were targeted to expand by 4 per cent.

He said shipments in the last quarter of 2014 would be worth about Bt630 billion to Bt650 billion (US$19.3 billion to $19.5 billion), which should help achieve a small expansion this year.

 

 

Key strategies of Commerce Minister General Chatchai Sarikulya

 

_ To change attitude of Thai people to consume more on local products

_ To emphasise on Research and Development (R&D) for export products 

_ To promote more cross-border trade

_ To drive export growth in target markets with closer cooperation

_ To set up of “Rice R&D Institute” to ensure sustainable incomes for farmers and release stocks