Thai Commerce Ministry sets ambitious 2015 export-growth target of 5%

[webfact]

EXPORT TARGET
Commerce Ministry sets ambitious 2015 export-growth target of 5%
Petchanet Pratruangkrai
The Nation

A worker walks past a luxury-fashion advertisement at a shopping-centre construction site in Bangkok. The economy is likely to grow by only 1.7 per cent this year, down from an earlier forecast of 2 per cent

BANGKOK: -- The Commerce Ministry expects exports next year to grow by more than 5 per cent, a challenging target that is larger than the country's economic-growth forecast of 4-5 per cent in 2015.

The ministry announced the ambitious goal after Commerce Minister General Chatchai Sarikulya met with 66 overseas Thai trade officials in Bangkok yesterday. It believes hitting the mark is possible because it foresees recovering global economic growth in many markets.

The ministry will today propose the target to the Cabinet for approval so that plans and strategies to drive exports next year could be implemented.

Commerce wanted to set a high target to encourage officials and companies to drive export growth as much as possible. Although gross domestic product next year is projected to grow by only 4-5 per cent, exports could grow more.

This year, exports are expected to grow by only about 1 per cent.

The ministry would support exporters as a priority so they benefited under the Asean Economic Community when it is fully integrated at the end of 2015, the source from Commerce Ministry said.

The ministry would support exporters wanting to move their manufacturing bases to other Asean countries to benefit from zero tariffs under the Generalised System of Preferences that developed countries offer poorer ones.

A company relocating elsewhere in the region would also escape the non-tariff barriers that countries in Asean might impose.

Such a move would also help reduce production costs as labour in poorer neighbouring countries is still quite cheap compared with Thailand.

The ministry will proceed with many activities to promote export expansion in numerous targeted markets - both major and emerging.

Meanwhile, the International Trade Promotion Department will utilise high-level government officials to create connections that would allow the country to take advantage of the High Value Opportunities project.

The department will also set up a mission for trade negotiations in countries such as Myanmar and support contract farming. It will ask for the cooperation of giant companies such as Charoen Pokphand, Central Group, Sahaphat and Thai Beverage to help distribute Thai products, in particular those from small and medium-sized enterprises, through Asean and other countries.

The department also plans to help enterprises take part in international trade exhibitions locally and abroad.

The ministry's export-growth projection for next year is a challenge, but it should benefit the country, said Vallop Vitanakorn, vice chairman of the Thai National Shippers Council. The TNSC has projected export growth of 5 per cent in 2015.

To help achieve the goal, the ministry plans to increase shipments to North America from US$25.15 billion (Bt813 billion) this year to $25.88 billion in 2015.

Exports to Japan are targeted to grow by 2 per cent to $22.9 billion, compared with 1-per-cent growth to $22.45 billion this year.

Exports to the European Union are projected to expand by 5 per cent to $23.51 billion next year.

Shipments to China are projected to grow by 1.5 per cent to $29.06 billion, higher than this year's 1 per cent to $38.48 billion.

Exports to the Asean market are tipped to grow by 7 per cent compared with 2.4-per-cent expansion this year.

Products targeted next year for promotion in Asean are food and beverages, plastic products, automobiles and parts, paper and printing products, construction materials, cosmetics, and jewellery and ornaments.

Exports to South Asia are forecast to grow by 5 per cent to $8.72 billion compared with 3 per cent to $8.3 billion this year.

Exports to other emerging markets are also expected to grow strongly, including to Russia and the Commonwealth of Independent States, by 10 per cent to $1.69 billion, and to Africa, by 2 per cent to $8.35 billion.

Increases are also expected for the Middle East - 5 per cent to $12.72 billion - and Latin America, 3 per cent to $8.55 billion.

Source: http://www.nationmultimedia.com/business/Commerce-Ministry-sets-ambitious-2015-export-growt-30245900.html


-- The Nation 2014-10-21

[wackybacky]

Dream on.

You are facing severe drought, you main export rice is going to struggle with what you have in your stockpiles degrading by the day.

Next year may see you face sanctions for human rights abuses and human trafficking still being in the spotlight (i.e. Bangladeshis) then we have the framing of two Myanmar kids for murder in the entire glare of the international community.

You aint going nowhere fast.

[cloudhopper]

" It believes hitting the mark is possible because it foresees recovering global economic growth in many markets."

Ambitious? How about totally unrealistic.

[chainarong]

Ambitious,you can say that again ,recession might be closer.

[rickirs]

“The TNSC has projected export growth of 5 per cent in 2015.”

10-13-2014: Deputy Prime Minister Pridiyathorn Devakula was confident that the expeditious disbursement of this year's fiscal budget would be able to stimulate the Thai economy, contributing to growth of 4% next year.

10-06-2014: Kirida Bhaopichtir, Senior Economist with the World Bank's Bangkok Office, said that the economic growth next year would be 3.5 per cent instead of 4.5 per cent as exports will increase by 6.4 per cent, and government investment will rise by 10 per cent, and household consumption would rise 1.5 per cent.

The math doesn’t add up. The GDP will grow 3.5% with an increase of 6.4% in exports but TNSC is forecasting export growth of 5%. Therefore, the predicted GDP growth would be 2.7%. But there are a few more internal economic influences that could further drag down growth not to mention unpredictable external economic events. Thailand will be fortunate for a 1.5%-2% growth in GDP for 2015.

[DLock]

...I guess they have to make up the GDP shortfall for tourism somewhere...

[chotthee]

5% for Thailand is too low. More like 15% as Thailand is an economic superpower of Asia.

[Cake Monster]

Wow ! , and only yesterday ( 21/10 ) " Bloomberg " reported that the Thai Economy was flatlining.

[needforspeed]

Dream on.

You are facing severe drought, you main export rice is going to struggle with what you have in your stockpiles degrading by the day.

Next year may see you face sanctions for human rights abuses and human trafficking still being in the spotlight (i.e. Bangladeshis) then we have the framing of two Myanmar kids for murder in the entire glare of the international community.

You aint going nowhere fast.

"You aint going nowhere fast"

Not agree, we going fast down.