The Commerce Ministry will form a task force with the Federation of Thai Industries (FTI) to tackle the baht problem and shield industry from financial losses.
"The joint committee was set up to resolve urgent issues deriving from the baht, which will allow us to collect hard data," Commerce Minister Porntiva Nakasai said yesterday.
Manufacturers whose products rely mainly on local content have been hit the hardest by the baht appreciating 7 per cent against the US dollar so far this year.
They are projected to suffer losses, since their average profit margin is only 5-10 per cent.
Garment manufactures have shifted to using more imported content to gain from the stronger baht.
However, exporters of all stripes have asked the Bank of Thailand to provide more information instead of just saying the baht's appreciation was in line with the growing economy and climbing regional currencies.
After meeting with Payungsak Chartsutipol, chairman of the FTI, and its board, Porntiva said her ministry's Export Promotion Department and Office of Trade Policy would work closely with Thanit Sorat, vice chairman of the federation. They would jointly assess the stronger baht's impact on both exports and manufacturing.
As of yesterday, the baht was quoted at Bt31 against the dollar, up by 3 per cent year on year.
Exporters have turned to purchasing packing credits in advance as well as to hedging. They also prefer quoting their prices in two currencies instead of relying solely on the dollar.
According to the ministry's preliminary assessment, manufacturers relying mainly on domestic raw materials - such as agricultural-goods processors, food producers and textile and garment makers - have been suffering from the strengthening baht. Other businesses are being evaluated.
Exports account for 50 per cent of gross domestic product, Porntiva said.
Despite the stronger baht, she still believes that the country's export target of 20-per-cent growth to US$183.91 billion (Bt5.733 trillion) is attainable. It is forecast that the baht should not strengthen beyond 30 per dollar.
Thanit said the Monetary Policy Committee's next meeting would consider interest rates and capital inflows, which are key factors in the baht's movements.
"The exporters' reference exchange rate was Bt31.2 per dollar in the past few months but now it has appreciated to Bt30.9 and it tends to get stronger," he said.
Vallop Vitanakorn, another FTI vice chairman, said the private sector wanted to see the central bank provide more details on the baht's value compared with other export rivals.
"We should consider other currencies that are our direct export competitors, but what happens now is that the central bank compares with only 12 countries," he said.
Manufacturers have switched to importing more raw materials, especially those that had not hedged, he said.
Visit Limpana, president of the FTI's Food Club, said the food industry was the most exposed, since 90 per cent of its raw materials are locally sourced. However, it generates a very low profit of 1-2 per cent, so now manufacturers have to shoulder losses.
"Without assistance measures, the problem will force small operators to shut down," he said.
The FTI is encouraging producers to import more equipment and low-priced energy, he added.