DEP opens its purse to boost trade

Amid fears of a domino effect from the global financial crunch, the Department of Export Promotion (DEP) will spend Bt2.8 billion to set up almost 1,000 trade-promotion projects.

The move is aimed at ensuring Thailand achieves export growth of about 10 per cent to US$192 billion to $197.6 billion (Bt6.66 trillion to Bt6.86 trillion) next year, against expected growth of 15.2 per cent to between $174.9 billion and $180.2 billion this year.

To achieve this goal, the Commerce Ministry will introduce 924 projects next year designed to stimulate exports via five trade-promotion strategies. Of those, 130 will be for export promotions for agricultural products and foods.

DEP director-general Rachane Potjanasuntorn yesterday said that amid the global economic slowdown his department would attempt to promote exports to all markets, but particularly potential new ones as a good opportunity for export expansion.

However, the ministry will also maintain activities in traditional markets like the US, the EU and Japan, because more than 34 per cent of the country's total export revenue comes from those three.

Exports are expected to grow 2.3 per cent to those three markets and 14.1 per cent to potential new markets like China, India, Latin America, the Middle East, Russia and Eastern Europe.

"The biggest risk factor affecting a slowdown in our export growth next year is the spreading financial crisis, because it will act to lower consumer spending, and that will cause difficulties for our exports," said Rachane.

He said exports of agricultural products and foods would increase from 17 per cent of total export value this year to 19 per cent next year, because these were considered essential goods that should not be affected by lower consumer purchasing power.

Another 519 projects will involve export promotion to potential new markets and 173 to traditional markets.

The ministry will focus on setting up trade fairs and conducting businessmatching in targeted countries.

The domestic political conflict will adversely affect visitor numbers to the Kingdom, so the ministry will participate aggressively in international trade fairs and set up Thai trade fairs abroad as a way to promote Thai goods, said Rachane.

Also the DEP will manage 102 projects in support of Thai service businesses wanting to go international, as a way of increasing foreign revenue.

Service businesses generate up to Bt500 billion for the Kingdom each year while employing more than a million labourers.

Of particular focus for promotion for investment, branch openings and franchise operations abroad will be the spa, restaurant, entertainment, education, hospital, auto-garage, construction and tailoring sectors.

In addition, the Commerce Ministry will strengthen competitiveness among Thai enterprises by increasing logistical efficiency via one-stop service and promoting Thai logistical development.

The ministry will also encourage Thais to invest abroad, in order to find new sources of raw materials to support domestic industries and reduce the cost of export transportation.