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Published on August 4, 2007

Its original target was growth of 12.5 per cent to $145 billion, but it can be more optimistic after significant export growth in the first half of the year and increasing exports to new markets.

Commerce Minister Krirk-krai Jirapaet said yesterday that exports should grow at not less than 12 per cent for the remaining months of the year.

"Continued export growth will ensure that Thailand achieves a target above the 12.5 per cent of the previous projection," he said, adding that the ministry would announce its revised target within the next two weeks.

The Kingdom's exports jumped 18.6 per cent year on year to $71.59 billion in the first half despite the baht's appreciation.

Krirk-krai said the ministry was moving in the right direction to promote exports to new markets to compensate for the drop in exports to the US, Thailand's major market. Exports would show a significant growth in new markets such as India, Eastern Europe and Africa.

The soon-to-be implemented Japan-Thailand Economic Partnership Agreement (Jtepa) will also facilitate export growth, he added.

Krirk-krai also insisted that the recent closure of garment and footwear plants was not solely a result of the baht's appreciation.

"Those industries have been at risk since 10 years ago because they are labour intensive and have lower margins. Such industries are easily hit by rising competition from countries with lower labour costs," he said.

Although some factories in the export sector are expected to shut down, Krirk-krai said the export target would not be affected. He explained that foreign customers would shift to purchase goods from other Thai exporters. This would ensure that existing exporters had a chance to survive.

Meanwhile, representatives of Japan's government yesterday sought clarification from Krirk-krai about the upcoming implementation of the amended Foreign Business Act.

After the meeting, ministry spokesman Krisda Piampongsant said the delegation had expressed concern about several issues related to trade and investment for foreign enterprises.

The ministry has repeated that the Act will not create harmful conditions for foreign investors and the government will impose fair practices without bias, with all investors given the same treatment.

The Japanese delegation also committed to providing more support for the development of Thai small and medium-sized enterprises under the Jtepa.

Petchanet Pratruangkrai

The Nation