The Commerce Ministry revealed yesterday the value of Thailand's exports to Japan would fall short of this year's target of 20-per-cent growth, due mainly to high competition.

Japan is Thailand's second-largest export market, after the United States.

Foreign Trade Department director-general Rachane Potjanasuntorn said the ministry had targeted 20-per-cent export growth to Japan this year, following growth of 18.8 per cent last year, when the value of exports to Japan reached US$15.09 billion (Bt568 billion).

However, Thailand's exports to Japan grew only 6.7 per cent to $10.6 billion in the first eight months of this year, compared with growth of 11.8 per cent over the same period last year.

The main export products suffering a drop include canned and processed seafood, which dropped 3.2 per cent, television sets 16 per cent, air-conditioners 20 per cent and furniture 9.8 per cent.

Rachane, who is a leader of the Japan Hub, a special trade-management group within the Commerce Ministry, attributed the lower-than-expected performance to tougher competition, particularly from major rivals like China and Vietnam.

"High dependency on a market is another major cause of difficulty in boosting exports. The ministry needs to convert its marketing plan into an investment in the market, in order to help boost the value of trade," he said.

He explained the hub would focus more on promoting entertainment-related industries that have a high-growth potential in Japan. The ministry plans to promote enterprises that will invest in the market by seeking cooperation with local companies.

It will set up a meeting between large Thai and Japanese private entertainment producers, in order to promote a concert as a first step in the cooperation plan.

Asked about prospects for the Thai-Japanese Closer Economic Partnership Agreement following changes in government in both countries, Rachane said Thailand must closely monitor the international trade policies of Japan's new prime minister, Shinzo Abe.

It must also await a decision by Thailand's new government on whether the agreement, which was finalised in April, will be concluded.

Meanwhile, the Commerce Ministry has postponed its annual meeting held to set up the country's export goals for next year. Normally, the meeting is held in mid-October, but the ministry is awaiting the appointment of a new commerce minister, and expects to hold the meeting next month.

In any case, a ministry source said the initial export targets would be based on 12-15 per cent growth, with Thailand's exports reaching a total value of $150 billion next year.

The value of the Kingdom's total exports grew 16.6 per cent to $83.56 billion during the first eight months of this year. However, the country still has a trade deficit of $1.87 billion. The ministry says the total trade deficit should not exceed $5 billion this year.

In August alone, the value of exports rose 16.4 per cent to $11.85 billion, while the value of imports rose 13.4 per cent to $11.58 billion.

Petchanet Pratruangkrai

The Nation