Thai exporters have already lost Bt300 billion thanks to the strengthening baht, which will create a domino effect on the national economy and corporate operating results, according to the Thai National Shippers Council.

Suchart Chantaranakaracha, president of the council, said yesterday that export losses would directly affect the country's economy in terms of company profits, tax payments, business expansion and employment.

Speaking at a seminar entitled "Advanced industrial strategy for competition in globalisation", Suchart said exports accounted for 60 per cent of the country's gross domestic product. However, the baht strengthening from Bt40 to Bt37.65 (yesterday's rate) against the US dollar has prompted huge foreign exchange losses. The baht rose to a six-year high at Bt37.50 against the US dollar on Tuesday.

"The baht moved so fast and exporters have been unable to cope with the changing environment. The government should intervene in the baht step by step and draw up a plan," he said.

Meanwhile, the Thai Rice Exporters Association has expressed concern that the baht's strength will prompt importers to shift their orders to lower-priced exporting countries.

The lost business will cause Thailand to miss its export target of 7.5 million to 8 million tonnes of rice this year.

Chookiat Opaswong, president of the association, said yesterday that a suitable exchange rate would be Bt39.50-Bt40 per dollar.

Thai rice export prices are higher than export rivals. For instance, Thai export white rice is quoted US$60 per tonne higher than Vietnamese rice.

"A continued appreciation of the baht will increase the country's export price. We are worried customers will be unable to shoulder the higher cost and they will place more orders with Vietnam, Pakistan and India," he said.

He added that Vietnam was the country's main rice export rival. It is the world's second-biggest rice-exporting country after Thailand. Vietnam's total rice export volume grew to 5 million tonnes compared with Thailand's 7.5 million tonnes last year.

But all of its exports are white rice, making Vietnam the world's biggest exporter of that grain type.

To maintain the country's export competitiveness, Chookiat said that both concerned agencies and the government should focus more on product quality. In addition, they should find new export markets rather than relying on the same ones they've been exporting to for years.