Thai Commerce Ministry to seek trade promotion strategies

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TRADE PROMOTION
Ministry to seek trade promotion strategies
Petchanet Pratruangkrai
The Nation

BANGKOK: -- The Commerce Ministry will propose that the International Trade Development Committee, which is chaired by Prime Minister Prayut Chan-o-cha, draw up a five-year trade-promotion strategy and measures to stimulate the economy, as well as decide whether Thailand should join the Trans-Pacific Partnership (TPP).

Deputy Commerce Minister Suvit Maesincee said the ministry would sum up problems and proposals from private enterprises for setting up trade-promotion plans in a more sustainable way.

The International Trade Development Committee is scheduled to meet on December 9.

Suvit said the committee would consider not only trade-promotion plans, but also how to stimulate the domestic economy to ensure stable crop prices and increase farmers' incomes.

"The ministry will propose drawing up a plan to emphasise trade in services, as that would create sustainable and higher returns for the country," Suvit said.

He said trade in services was now contributing about 30 per cent to gross domestic product, a proportion the ministry projects will rise to 50 per cent within five years.

Moreover, Thailand's market share in exported services is now slightly larger than its market share in trade in goods, he said.

Exportable services that the ministry will focus on include wellness and medical, logistics, professional services, architecture, education, software and entertainment.

Suvit said demand for those services were highly likely to grow in the global market since the trend would shift to trade in services, not only trade in goods.

The ministry will also ask for the prime minister's and the committee's views on whether Thailand should join the TPP and how to move forward on the Regional Comprehensive Economic Partnership. The meeting will also discuss how to promote the farming sector and support the processing of agricultural products to serve the world market so that Thailand will no longer face oversupplies of agricultural commodities, while farmers will gain better incomes.

Suvit said farmers' incomes should increase and stabilise if the government has a clear plan to help them balance supply and demand, while finding markets for their crops.

The focus will be on rice, tapioca, rubber, sugar cane, and seasonal fruits.

Meanwhile, Deputy Prime Minister Somkid Jatusripitak is set to meet with the Commerce Ministry on Thursday to wrap up measures to promote both local and overseas trade, as well as find solutions to export difficulties.

Ministry officials will brainstorm to draw up measures to stimulate exports next year.

Suvit said export growth should return to positive territory next year, after this year's negative growth amid the sluggish global economy.

According to a survey by the ministry, although Thai exports have declined this year, Thailand still did better than many other countries. In the first eight months this year, only three economies - Ireland, mainland China and Hong Kong - saw export value decline less than Thailand's.

Moreover, with the positive outlook for better global trade expansion next year, Thai exports should also benefit, he said.

The International Monetary Fund projects that global trade will expand by 2.4 per cent in 2016, from a decline of 11.2 per cent this year.

Source: http://www.nationmultimedia.com/business/Ministry-to-seek-trade-promotion-strategies-30272038.html


-- The Nation 2015-11-02

[MilesofSmiles]

Suvit said farmers' incomes should increase and stabilise if the government has a clear plan to help them balance supply and demand, while finding markets for their crops.

1. Higher value crops/products
2. Increased crop yields per square meter of farmland.

Sell land to the Vietnamese, because modern farming is clearly not for you.

[waldroj]

MilesofSmiles identified the key part of this article.

Dr Suvit has nailed it! But, it’s a big ‘if’ for the junta.

[fred Kubasa]

Here are some totally new, ( for Thailand ), concepts to be considered :

1). Upgrade quality of Thai exports

2). Remove special " charges/fees/financial supplements "

3). Make in/out logistics manageable -- some trucks in line 6 - 8 hours

4). Improve rail transport of goods

5). Hire a dozen, or so, OUTSIDE experts to show how the above is done

[Srikcir]

Historically, Thai exports accounted for 70% of GDP and 40% of that is in agricultural products. But there was has been in 2014 and 2015 a collapse in both Thailand’s import and export sectors with little improvement expected in 2016.

In response the government recently stated that Tourism and government stimulus will be the primary economic drivers (70%?) for GDP:

“The government will now turn its focus to restructuring the economy to reduce dependence on exports while boosting domestic tourism and other businesses” - Deputy premier Somkid Jatusripitak, The Nation 2015-10-16

But today in a turnabout,

"The [Commerce] ministry will propose drawing up a plan to emphasise trade in services, as that would create sustainable and higher returns for the country" - Deputy Commerce Minister Suvit Maesincee

Does this government really have any realistic economic plans or is it just playing a poor game of "Marco Polo?"

[trogers]

The first question to answer: What do you have to trade that is worth the price which the world cannot get cheaper?

[ChrisY1]

"Exportable services that the ministry will focus on include wellness and medical, logistics, professional services, architecture, education, software and entertainment."

Logistics: Goods get lost, stolen or broken

Pro Services: Business Management??......nah....

Architecture: Ok if you like 1940s style built like crap

Education: No need to comment!

Entertainment: Export bars and staff.......Tiffany....Ladyboys!

Good luck!