• 
• 

At a seminar entitled "Exploring Poland and Hungary" held by the Department of Export Promotion, participants suggested small and medium-sized enterprises look for new export markets where there is less competition and tariff barriers are coming down.

Deputy Commerce Minister Wiroon Techapaiboon said exports to Eastern Europe had better growth potential than traditional markets in Western Europe and the United States, where competition is fierce.

"Thai exporters should further explore this region, in order to capture market share before other countries do. Exports to these new markets are likely to grow significantly, because demand is growing, particularly for quality products and foods from Thailand," Wiroon said.

He predicts Thai exports to Poland and Hungary will reach US$1 billion (Bt33.65 billion) each within five years.

Last year, exports to Poland grew 78 per cent to $414 million and to Hungary 44 per cent to $384 million.

Consumers in both countries have greater purchasing power, due to strong economic growth and new investment that is flooding in, said Wiroon, adding that exporters could use the two countries as a springboard to the rest of Europe, since they belong to the European Union.

The ministry has targeted growth of 57 per cent in exports to new markets in the next five years to offset the growth slowdown in traditional markets.

Exports to traditional markets account for 51.8 per cent of all exports, with new markets accounting for 48.2 per cent.

S Khon Kaen Industry CEO Charoen Rujirasopon said consumers in Eastern Europe were developing a taste for Asian foods. "My company will extend its production lines in Poland, because of higher demand for our products. Not only local consumers, but also Asian consumers living there have increased demand for Asian foods," he said.

So far, the company has invested only in Poland via its Paruzel franchise.

Asked about the company's performance this year, he said S Khon Kaen expected revenue of Bt900 million, up 12.5 per cent from last year's Bt800 million.

He said that despite a slowing economy, domestic sales continued to increase 10 per cent a year, because food was a necessary commodity.