Thailand's exports grew to more than US$10 billion (Bt382 billion) last month, an 18-per-cent increase from the same period in 2005.

The strong rise has convinced the Commerce Ministry that the Kingdom's trade deficit will not worsen this year. Also, the government will try to promote tourism to ensure that the current-account balance meets the ministry's target, according to caretaker Deputy Prime Minister Somkid Jatusripitak, who spoke yesterday at an export seminar.

Despite a host of negative factors, particularly the increase in oil prices, the ministry estimates the Kingdom's current-account deficit will be $2 billion-$3 billion this year, while the trade deficit should not exceed $6 billion.

Thailand's trade deficit was $646.4 million  in May, the highest since June 2005. The Kingdom exported $10.8 billion worth of products that month and imported $11.5 billion worth.

Somkid said escalating oil prices would result in another trade deficit this year. However, boosting exports and tourism could reduce the deficit.

Meanwhile, a seminar entitled "The cooperation between the private and government sectors to increase fruit exports to China" was held yesterday. Somkid  suggested that farmers and traders pay attention to details such as improving the quality of fruit among other issues.

"In three years, Thai fruit exports should double but only if we improve our farming and packing systems," Somkid said.

According to the Commerce Ministry, exports of fruit to China grew 14.5 per cent to Bt1.46 billion in the first five months of this year from the same period in 2005.

Chantra Purnariksha, director-general of the Export Promotion Department, said, if Thai traders and farmers improved their management systems, exports should grow 30 per cent each year.

Thailand has signed 10 contracts with leading superstores in China to buy fruit as well.

The produce will soon be available at stores like Carrefour, Lotus, Trust-mart, Jusco, Fu mart, Sam's club, Park N Shop, and City Super.

Petchanet Pratruangkrai

The Nation