More trade offices to be set up

Seven new trade offices will be set up by this year, while another six are expected to be set up within the next fiscal year.

The move aims to balance the export proportion between traditional and new markets in order to assure stable export growth as exports to traditional markets are falling.

Rachane Potjanasuntorn, director-general of the Export Promotion Department, said exports to traditional markets such as developed countries and new markets should be equal by next year. This would ensure that exports grow smoothly as the department would have a worldwide support network.

Exports to traditional markets now account for 52 per cent of all exports, with new markets accounting for 48 per cent. The department has 56 overseas commercial offices in 40 countries. Of those, 21 are in traditional markets while 35 are in new potential markets.

Seven new export trade offices will be in Shenyang and Chingdao in China, Nairobi in Kenya, Buenos Aires in Argentina, Abuja in Nigeria, Kolkata in India and Islamabad in Pakistan.

Another six offices will follow and will include Nanning and Xian in China, Saint Petersberg and Vladivostok in Russia, Kiev in Ukraine, and Guatemala City in Guatemala.

The responsibilities of trade offices overseas are to seek export and investment opportunities for Thai goods and investors, seek sources of raw materials to support domestic production, create connections with local governments and traders, and conduct a "door-knocking" strategy with target buyers. All trade representatives will have to arrange their priorities and contact buyers to convince them to do business with Thailand.

To set up a new office, the department must spend Bt10 million for each post a year.

Rachane said that establishing new export posts in potential new markets is part of the department's strategy to drive future export growth. He added that exports to new markets would become higher than exports to traditional markets in the next five years.

He said that exports to China should become stronger as the country's significant economic growth would create a higher demand for Thai goods.

In the near future, China would become a major export market, replacing the United States, the European Union and even Japan.

Thai exports to the US and EU account for 11.3 per cent equally with 12.1 per cent to Japan, while exports to China account for 9.6 per cent of the total export value.