Scepticism Over Govt's Export Target

[Lite Beer]

POLICY DOUBTS

Scepticism over govt's export target

Petchanet Pratruangkrai

The Nation

BANGKOK: -- Private sector, central bank say 15% figure unrealistic in light of euro crisis

The Yingluck government insisted yesterday that the country's export growth target would remain unchanged at 15 per cent this year despite the worsening euro-zone crisis.

Five of the 17 Euro-zone economies have already sought bail-outs from the European Union, prompting exporters to worry if shipments to European markets will drop significantly in the second half of this year.

In response to this challenge, the government has set up six committees to drive export growth to achieve the target of 15 per cent. But the private sector is less optimistic.

Bank of Thailand governor Prasarn Trairatvorakul said the country would be fortunate if it could achieve an export growth rate of 8 per cent this year.

Yingluck admitted that the 15-per-cent growth target was a big challenge.

"However, the government will not adjust the target setting, but will change some action plans," she said.

Deputy Prime Minister Kittiratt Na Ranong said the first committee would monitor tariff barriers, rules and regulatory obstacles, while the second would monitor the situation in Europe as bilateral free-trade talks may start soon to increase market penetration.

The third working committee would focus on driving exports for each industry, looking at trade in goods and services.

The fourth panel would look to boost exports to Asean and nearby countries, as well as support investments from Thailand to neighbours in order to boost Thai industrial growth.

The fifth would seek to drive exports to East Asian and North American markets. The sixth panel would look at boosting exports to new markets - mainly in Africa, Latin America, the Middle East, Russia and India.

To urgent push exports, the government has already allocated Bt100 billion of "soft loans" for small businesses, and set aside a fund worth Bt40 billion to insure against export risks this year.

Commerce Minister Boonsong Teriyapirom said a working committee would be set up within two weeks. An action plan to counter export barriers and drive export growth in each market would be done soon. It would be made up of representatives from the government, private sector, and the Thai Trade Representative.

Paiboon Ponsuwanna, chairman to the Thai National Shippers’ Council, said although the government had set a high target, the country was only likely to boost exports by 12 per cent this year.

Phongsak Assakul, chairman to the Board of Trade, said exports would grow only by 10 per cent this year as there were many obstacles. To boost exports, the government should support opening Customs post operations for 24 hours.

Surapong Paisitpatnapong, vice chairman to the Federation of Industry's Automotive Industry Club, said car exports to the EU would drop from 9 per cent last year to 6.5 per cent this year due to the financial slowdown in Europe.

-- The Nation 2012-07-01

[ttelise]

Haha, with Euro destabilization, may have been a bit more prudent to not drag feet on NASA project if wanting/needing to increase exports to US and Japan. I think US could probably look more to Europe for imports due to currency exchange so Thailand not in a great position to make deals.

Seriously, Thailand needs some positive news as what gets printed or posted her makes everything they do seem shortsighted or driven by greed. Surely, they do something right

Edited July 1, 2012 by ttelise

[Skywalker69]

The PM is far up in the blue and have no idea how the world works.

[Ricardo]

Perhaps it might be worth considering, how to revive exports of Thai rice, rather than letting it pile-up in the warehouses ?

But how to do that, without recognising that it was bought-in from the farmers, at an uncommercially-high price in the first place, that's the nettle which has yet to be grasped.

[Valentine]

Perhaps it might be worth considering, how to revive exports of Thai rice, rather than letting it pile-up in the warehouses ?

But how to do that, without recognising that it was bought-in from the farmers, at an uncommercially-high price in the first place, that's the nettle which has yet to be grasped.

Yes, they may as well sell it at market price & get some of the money back. It does no good sitting & possibly rotting in silos. No doubt all the middlemen have their share of the plunder so no need to hang on to it but I wonder what percentage of the pledging did the average farmer get.

[OzMick]

The obvious solution to fulfilling the PM's predictions is a trade boosting tour of EU countries. I expect that this very important trip will be proposed in about 1 month, just as parliamentary sittings re-commence.

[Ricardo]

Perhaps it might be worth considering, how to revive exports of Thai rice, rather than letting it pile-up in the warehouses ?

But how to do that, without recognising that it was bought-in from the farmers, at an uncommercially-high price in the first place, that's the nettle which has yet to be grasped.

Yes, they may as well sell it at market price & get some of the money back. It does no good sitting & possibly rotting in silos. No doubt all the middlemen have their share of the plunder so no need to hang on to it but I wonder what percentage of the pledging did the average farmer get.

I think that's one statistic which will not be forthcoming.

[slapout]

Projected numbers mean very little, unless your trying to convience someone you know what is going to happen and you have a plan to handle the various possiblities. Setting up 6 committees, after the prior committees who were to plan for this scenero, were appointed, several weeks ago, may be a tad redundent.

The vetting group who appoint the committees must be either on a commission, or trying to find someone with less business knowledge than themselves. In either case, they may want to consider the difficultly in setting up monoply type businesses, worldwide, like they have in Thailand. Get ready for a rough ride, which will be self inflicted.

[ballpoint]

Perhaps it might be worth considering, how to revive exports of Thai rice, rather than letting it pile-up in the warehouses ?

But how to do that, without recognising that it was bought-in from the farmers, at an uncommercially-high price in the first place, that's the nettle which has yet to be grasped.

Yes, they may as well sell it at market price & get some of the money back. It does no good sitting & possibly rotting in silos. No doubt all the middlemen have their share of the plunder so no need to hang on to it but I wonder what percentage of the pledging did the average farmer get.

In Buri Ram, the average price paid to small farmers for long grain rice, pledged at 15 baht/kilo, was 10 baht/kilo. For jasmine rice, pledged at 20 baht/kilo, it was 15 baht/kilo. The price increased for those selling larger amounts, but that wasn't the point of the exercise, wasn't it?

[MEL1]

I think it would have been more prudent to have just left the headline as:

"Scepticism about all the govt's plans, from here unto eternity."

-mel.

[Reasonableman]

Time to set up a Thai Chapter?

http://www.skeptic.com/

[Skywalker69]

The obvious solution to fulfilling the PM's predictions is a trade boosting tour of EU countries. I expect that this very important trip will be proposed in about 1 month, just as parliamentary sittings re-commence.

Do you mean go shopping in London and Paris?

[Mosha]

Perhaps they should let TAT run the export side of things?