Overseas trade counsellors see challenges to export growth target

However, despite these factors, the Commerce Ministry has maintained its forecast that exports will grow by 4 per cent this year to US$236.67 billion (nearly Bt7.8 trillion).Exports to North America are projected to grow by 2.9 per cent (to the US by 3 per cent and to Canada by 1 per cent), to Japan by 2 per cent, Australia and New Zealand by 5 per cent, South Korea by 5 per cent, Russia and the Commonwealth of Independent States by 5 per cent, and India by 10 per cent. 

The key export markets of Asean and China are expected to grow by only 1 per cent each, however, while shipments to the Middle East grow by 4 per cent, and to Latin America and Africa by 2 per cent each.

Kaewta Booncharoen, director of the Thai Trade Centre in Buenos Aires, said Thai exports to Latin America were projected to grow by only 2 per cent at the most this year because of economic slowdowns in Argentina and Brazil. Trade with Chile, Peru and Mexico will continue to grow, however, as Thailand has free-trade agreements with the first two.

However, she said one of the major challenges hindering Thai export growth was a reluctance to explore new markets, particularly those as distant as Latin America.

“The longer Thai exporters take to penetrate new markets, the more Thailand will lose market share to rivals such as Vietnam and China, since their exporters are strongly penetrating those markets.” Kaewta added that there were Vietnamese and Chinese communities in Buenos Aires helping create a market for many Chinese and Vietnamese products.

She encouraged Thai exporters to use technology and the cyber-world to connect with faraway customers.

Jirawuth Suwanna-arj, minister counsellor in the Thai Embassy’s Office of Commercial Affairs in Nigeria, said Africa was a potential market for Thai products, despite lower oil prices and political conflict in some countries affecting their economic growth.

To promote exports to this region, the Commerce Ministry will organise many activities and a seminar on “Eyes on Africa: Building Business Networks”.

Jirawuth said Africa had high demand for foods and industrial goods, construction materials for infrastructure development, and agricultural equipment, while the region could also be a great supplier of jewellery, fish, forestry products, and oil.

Commerce Minister General Chatchai Sarikulya has decided to keep this year’s export target at 4 per cent as an ambitious goal so that officials and exporters will struggle to promote export as most as possible. 

The ministry has been closely monitoring the export trends this quarter, before deciding whether to revise the export target.

Chatchai said his ministry would cooperate with private enterprises to promote trade through information technology, the Internet, roadshows to various markets, training projects for Thai enterprises, and economic partnership agreements with other countries.

He said the ministry would also adjust the roles of Thai trade officials overseas to be more businesslike as they help Thai exporters penetrate each market.

Somdet Susomboon, director of the Thai Trade Office in New York, said the US economy had recovered strongly so far this year. 

He suggested that Thai exporters do business based on high discipline and focus on high standards to ensure sustainable exports to the US market.

Phatai Sooksommai, commercial minister at the Thai Trade Office in Tokyo, said exports to Asia markets would show stronger growth this year, at 4.5 per cent, while exports to Japan would grow by about 2 per cent.

The Japanese government has tried to stimulate its economy, and its policy to reduce its imports from China should help drive Thai exports to Japan this year, he said.

Thailand’s overseas trade counsellors point to numerous successes. An Indian tyre producer wants to set up a factory in Thailand and use local rubber, while a Turkish importer is interested in purchasing rubber from Thailand. 

South Korea has agreed to import millions of dollars’ worth of Thai sugar, and Hong Kong traders plan to import more rice and fruits.