An intensive export promotion plan and the government's policy to encourage overseas investment should boost exports this year, they said at a meeting in Bangkok called by the Commerce Ministry.

Exports are targeted to rise by 17.5 per cent this year to US$130 billion (Bt5 trillion.

To help achieve the goal, the government will establish two trade centres, one in Madras in India and the other in Xiamen, China.

Chantra Puranariksha, director-general of the Export Promotion Department, said local politics should not affect this year's export performance, adding that the department has restructured export plans to cope with the changing situation.

The ministry will also seek the cooperation of trading partners to form distribution centres overseas.

Weerachai Nopsuwanwong, minister commercial at the Thai Embassy in Moscow, said Russian traders were not worried about the political situation in Thailand as long as the trade privileges given to Russia remain unchanged.

"Russia sees Thailand as possessing a high potential for growth," he said.

Weerachai added that Autovaz, Russia's leading car producer, was considering whether to invest in Thailand.

The countries are also studying the possibility of forging a bilateral trade agreement.

Commercial officials based in the Middle East, Australia and New Zealand have raised the export growth targets for their respective areas: from 25 per cent to 32 per cent for the Middle East, and from 30 per cent from 34 per cent for Australia and New Zealand.

Exports to the Middle East are expected to move ahead apace due mainly to higher oil prices driving growth in the region, said Sutisak Laohachewin, executive director of the Thai Trade Centre in Dubai.

Officials for other major markets have retained their previous targets. The target for Asean stands at 18.7 per cent; the United States at 15 per cent; Europe at 4.5 per cent; Japan and South Korea at 20 per cent; China and India at 40 per cent; and Africa at 20 per cent.

Petchanet Pratruangkrai

The Nation