Ministry targets 15% growth, new markets in focus

Wary about the US financial crisis, the Commerce Ministry yesterday released a modest target for next year's exports of 15-per-cent growth to more than US$200 billion (Bt6.8 trillion).

To support the goal, the ministry will spend billions of baht to dispatch more than 320 trade missions, particularly to fast-growing countries in Asia, Africa and Latin America.

The ministry has to explore new markets to offset the decline in the traditional markets of the United States, the European Union and Japan.

New markets are expected to edge up to 67 per cent of the country's total export value, from the 65 per cent expected this year. The US, EU and Japan are seen as dropping from 35 per cent this year to 33 per cent next year.

However, the ministry is optimistic that exports could expand by as much as 17-19 per cent next year following the news of the US Senate approving a US$700-billion financial rescue package on Wednesday night, which would help pull the US out of its deep economic slump.

Exports look on track to increase by 15 to 20 per cent to $174.9 billion-$182.51 billion this full year after surging by 24.5 per cent to $120.05 billion in the first eight months.

In light of the economic misery in the US, the ministry has reduced its export target for that market by 7 percentage points to 3-5 per cent but has maintained its export milestones for other markets.

Commerce Minister Chaiya Sasomsap said the ministry still believed exports would continue to play a major role in driving the economy next year.

"Despite concern over the US crisis, it should affect exports minimally as Thailand has already focused on exporting to new potential markets, whose economies should continue to grow next year," he said.

Exports to the US have accounted for 11.2 per cent of overall export value.

However, the government has not ignored traditional markets. The ministry is preparing to participate in 169 trade fairs to be held in the US, EU and Japan next year.

Rachane Potjanasuntorn, director-general of the Department of Export Promotion, said all overseas trade offices are confident that exports to other markets will meet next year's growth targets - Japan 8 per cent, Asean 9.1 per cent, EU 7 per cent, Eastern Europe 30 per cent, South Asia 25 per cent, Middle East 20 per cent, Africa 25 per cent, China 20 per cent and Russia 30 per cent.

A three-point strategy will be followed to boost exports next year. First, food and agricultural products, which are indispensable for life, will be promoted from 17 per cent of total export value to 19 per cent next year.

Overseas investments of service businesses will be encouraged for their high returns. In focus are restaurant, spa, hospital, entertainment, construction, garage and franchise businesses.

Measures will also be implemented to make logistics more efficient, while trade missions will conduct "door-knocking" activities to open channels for Thai goods in target markets.