After the country logged another trade deficit in May, caretaker Commerce Minister Somkid Jatusri-pitak announced an initia-tive to boost exports to an average of US$10 billion (Bt384 billion) a month and encourage small and medium-sized enterprises to become more efficient.

He dubbed the initiative "Creative Ministry of Commerce; Dynamic SMEs".

Thailand's exports in May exceeded $10 billion, a 19-per-cent year-on-year rise, but with soaring oil prices and the baht's appreciation trade remained in deficit, Somkid said

yesterday. Official import and export figures for last month will be announced today.

Thailand saw a trade deficit of $551 million in April, mainly due to a general slowdown in exports, surging oil prices and a rise in the volume of oil imports. Exports rose 11.7 per cent to $9.2 billion in April while imports grew to $9.76 billion, a slight 0.3-per-cent rise year on year.

"The Kingdom needs an aggressive export promotion plan in which SMEs will be a key driver," Somkid said.

He added that the ministry would focus on encouraging export competitiveness and said exports were set to rise 17.5 per cent this year.

Somkid yesterday instructed senior ministry officials to draft a plan to boost exports by August.

The plan to increase the efficiency of SMEs was adapted from a South Korean plan to make its economy more dynamic by promoting small firms.

Initially, the ministry plans to im-prove the efficiency of about 3,000 enterprises in various sectors.

The plan calls for the creation of links between manufacturers so that they will have more power to compete internationally.

The government will provide financial support and create links between companies.

Somkid said the plan also had the support of commercial banks and the Federation of Thai Industries and would seek cooperation from other countries.

After a "road map" is completed, the plan should expand cooperation between Thailand and Japan's ministry of economy, trade and industry.

Somkid also announced he would travel to France and Turkey from June 20 to 24 to boost trade.

With a road-map for creating a strategic partnership with France already achieved, his trip is aimed at putting this into practice, he said.

The two countries drafted a trade action plan early this year, when President Jacques Chirac made a state visit to Thailand with about 300 French executives.

The two countries agreed that Thailand should be the gateway for French firms in Southeast Asia while France would be the gateway for Thai firms into Western Europe.

Both sides hope to increase bilateral trade and investment to $5 billion and $2 billion a year respectively. France is Thailand's third-largest European investor, after Britain and Germany.

The visit to Turkey aims to enhance cooperation in a relatively new market for Thai firms.

"We foresee that Turkey will be the greatest gateway for Thailand and Southeast Asia to the Eastern Europe," Somkid said.

Petchanet Pratruangkrai

The Nation