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"Strong export grow should guarantee that the country will succeed in driving exports to our challenging growth target of 15 per cent to $175.3 billion this year," permanent secretary Siripol Yodmuangcharoen said.

Imports in the month surged by 30.7 per cent to $15.64 bil-lion, largely on fuel purchases.

Robust exports in June helped narrow the cumulative trade deficit to $1.06 billion in the first half from $1.6 billion in the first five months. Exports added 23 per cent in the first half to $87.21 billion, while imports increased 33.6 per cent to $88.27 billion.

Siripol could not predict if the trade balance would end in surplus or deficit this year, as the skyrocketing oil price is a major factor behind the huge jump in imports so far.

Fuel imports shot up by 58 per cent last month, mainly from crude oil, and other energy sources including LPG. Fuel accounts for 21 per cent of total imports.

Rachane Potjanasuntorn, head of the Department of Export Promotion, said strong export growth this year should stimulate economic expansion despite rising oil prices.

"The baht's weakening has also delighted Thai exporters, as the department had expected the baht to average Bt30 against the US dollar, but now it's at Bt33-34 per dollar," he said.

Other positive factors for export growth in the second half were rising production and labour costs in China, Thailand's major export rival, and slowing economic growth in Vietnam.

Exports across the board saw significant growth last month, particularly in the agricultural industry, which rose by 52 per cent, and agro-industrial goods, which improved by 26 per cent.

But exports of others goods including arms dropped by 8.5 per cent.

Rice exports jumped 202 per cent in value and 34 per cent in volume. Exports of farm goods accounted for 17 per cent of total exports.

Most industrial exports continued to do well except electron-ic and electric appliances, which suffered from sluggishness in the world market.

Cosmetics and healthcare products were standouts last month with exports soaring by 507 per cent.

Rachane said Thai cosmetic and healthcare products were now perceived worldwide as being of high quality. Goods and service exports from this sector should grow significantly in upcoming years.