industries to table proposals

Key industries will today propose a joint strategy to the Commerce Ministry to stimulate export growth this year by tackling urgent issues on credit, bank guarantees, labour shortages and market penetration.

"Many industries are facing difficulties with funding due to the impact from the financial crises since last year. They want the government to provide support for them so they can survive during the global economic downturn," Vallop Vitanakorn, secretary-general of the Thai Garment Manufacturers Association, said yesterday.

Commerce Minister Pornthiva Nakasai is scheduled to conduct a workshop today with representatives of 20 industries to brainstorm ways to help exports meet the ministry's ambitious target of 5-per-cent growth to US$187 billion (Bt6.55 trillion) this year.

The private sector, in contrast, has said it would be happy with even zero growth in exports.

Vallop, who is also the deputy secretary-general of the Federation of Thai Industries, said exporters were getting the cold shoulder from state and commercial banks when approaching them for more credit to maintain and expand their business.

Industry would like the government to ask state banks like Krung Thai Bank and the Small and Medium Enterprise Development Bank to release more soft loans for exporters, particularly small and medium-sized enterprisess, he said.

The government must also ask for more cooperation from commercial banks to be flexible in credit collection and to extend more soft loans to enterprises.

As some exporters are having problems with buyers delaying payments, the government should arrange export insurance at low premiums for them.

Since some industries need more skilled labour, the government should help set up training programmes for unskilled and unemployed workers to support industry growth. The garment and textile industry, for one, could use about 16,000 more workers, said Vallop.

Exporters, especially SMEs, need government help to penetrate promising markets as a way to compensate for a drop in orders from traditional markets like the US, European Union and Japan as their economies freeze up this year.

The government must budget more to support research and development of local products and packaging as way to add value to Thai products.

It must proceed with stabilising exchange values and maintaining a weak currency to promote export competitiveness, said Vallop.

It should also urgently encourage the signing of free-trade agreements with trade partners and Asean, particularly the pact with South Korea, as up to now Thailand has gained nothing from this FTA, while the other nine countries in Asean have.

The government should promote linkages among industries and enterprises of varying sizes as way to support industries to expand together. Tying-up would help reduce costs of production as well as increase revenues through lean manufacturing. Finally, the government must closely monitor non-tariff barriers as many developed nations and trading partners use them to protect their domestic markets during the economic slump, said Vallop.

The government must help alert and warn the private sector about new non-tariff barriers, so exporters can make adjustments so that their shipments would not be interrupted by such measures, he said.

Yangyong Phuangrach, director-general of the Internal Trade Department, said the Commerce Ministry would also focus on solving domestic problems by allocating a budget of Bt1.18 billion to address the case of falling agricultural prices, and help reduce the cost of living for consumers.

The ministry is scheduled to hold many low-price fairs around the country this year.