Caretaker Commerce Minister Somkid Jatusripitak yesterday announced that the Kingdom's total exports should grow equal to its gross domestic product, from Bt5 trillion to Bt7 trillion in the next five years.

However, the ministry has expressed concern that the country's economy will show slower growth next year, due to negative factors like fluctuating oil prices, the baht's appreciation and a slowdown in world economic growth, particularly in major export markets for Thailand.

To achieve the export goal, Somkid ordered 58 commercial counsellors worldwide and the private sector to cooperate in boosting exports and improving the efficiency of both large and small-and-medium-sized exporters.

Somkid said the ministry expected to see manufacturers and exporters of all sizes - large, medium and small - drive the Kingdom's economic growth. The ratio of small and medium-sized enterprises' contribution to national exports should increase from the current 30 per cent to 50 per cent, he said.

The ministry held a meeting in Bangkok yesterday with representatives from the Federation of Thai Industries (FTI), the Thai Bankers Association and 58 Thai commercial counsellor from offices abroad.

Somkid ordered them to draw up a promotion and marketing strategy to achieve targeted export growth in each market.

He said the ministry's trade counsellors would not only act as counsellors, but also as marketers, in order to promote exports and investment.

Under the marketing plans, all trade counsellors would have to update trade information to the private sector, identify business opportunities for exporters, facilitate exporters by providing a contact person in each market, help solve trade-measure problems and promote investment in targeted markets.

Somkid has also ordered commercial counsellors to work closely with the private sector to increase market access. The ministry will concentrate more on conducting market research and development, in order to increase both the value and the volume of exports.

"The government will cooperate with educational institutes in supporting private enterprises' increasing the creation of value-added export products," he said.

The ministry will also step up negotiations on free-trade agreements (FTAs), particularly with major trading partners like the US.

"To ensure that Thailand maintains its market share in the US and attracts American investors to the Kingdom, negotiations should be concluded by next April," he said, adding that the ministry would also meet with representatives from non-governmental organisations to create more understanding of the necessity of FTAs.

Karun Kittisataporn, permanent secretary of the ministry and also newly appointed chief negotiator for the Thai-US FTA, said officials had already prepared information for further negotiations after the new Cabinet was appointed.

The ministry said Thailand's exports to the US increased 17 per cent to US$11 billion (Bt412 billion) in the first seven months of this year. However, its market share dropped gradually, from 1.35 per cent in 2000 to 1.19 per cent last year, because of high competition in the market. The ministry has targeted a 15-per-cent increase in exports to the US this year, to $19.6 billion.

Petchanet Pratruangkrai

The Nation