15% growth 'is still Possible'

Promoting local products, direct marketing and exploring new potential markets are three key strategies being followed by the Commerce Ministry to ensure its export-growth target of 15 per cent for this year is met.

The strategies have also been designed in a situation where the country's exports face many negative factors, including escalating oil prices and the global economic slowdown. These factors are likely to affect exports in the second half of the year.

Commerce permanent secretary Siripol Yodmuangcharoen said focusing only on trade promotion was not enough to facilitate trade in tougher circumstances. The ministry was undertaking diversified marketing strategies to expand trade and investment.

"Despite many negative factors in the world market, we [the ministry] are confident of reaching the export target of 12.5-15 per cent growth to US$171.5 billion-$175.3 billion [Bt5.7 trillion-Bt5.8 trillion] this year. New trade strategies will be introduced to further export growth," he said.

The most important negative factor in the second half will be high oil prices, but this will affect all countries.

According to the World Economic Outlook and International Monetary Fund reports, world trade will expand by 3.7 per cent - against 4.9 per cent last year. Exports of developed countries will grow only by 4.5 per cent, from 5.8 per cent last year, while exports of developing nations will increase by 7.1 per cent (from 8.9 per cent). The US economy will grow by 0.5 per cent, against 2.2 per cent last near, Japan by 1.4 per cent (from 2.1 per cent), and the European Union by 1.4 per cent (from 2.6 per cent).

To reach the export target, exports for the remaining months of the year must increase on average by 7 per cent to 11.05 per cent or a value of $14.3 billion-$14.9 billion a month. Exports grew 22 per cent to $70.94 billion in the first five months of the year, which his 41.4 per cent of the target.

The ministry will announce export statistics for the first half of the year on Tuesday.

Siripol said that the ministry would promote Thai products overseas by focusing on agricultural and agro-industrial goods as they can generate higher income for local people than pure industrial goods.

Main export products are industrial goods such as automobiles, electronic parts, and appliances. However, these products are mostly owned by multinational companies, which create low income for local enterprises. Therefore, the ministry will encourage more real Thai products as the country's leading exports, he added.

To promote local products, the ministry will hold several trade fairs to facilitate local traders to meet international market demands. The strategies are to train local producers to produce value-added goods with attractive packaging; encourage enterprises to modernise their management and trading systems by applying new technologies; and facilitate traders by setting up business-matching through trade exhibitions and missions.

Next, the ministry will concentrate on direct marketing by urging all 56 trade offices overseas to conduct a "door knocking" strategy with target buyers. All trade representatives will have to arrange their priorities to contact buyers and convince them to do business with Thailand directly. The channel will not only cut middleman traders, but also open opportunities for new exporters to sell to large wholesale and retail outlets overseas.

Of the 56 trade offices, 21 are in traditional markets while 35 are in new potential markets. The ministry will set up 12 additional offices in new markets such as Argentina, India and Kenya in order to increase the portion of trade accounted for by new markets, which are experiencing economic growth and higher purchasing power.

Lastly, the ministry aims to capture more market share for exports to new markets. It targets that exports to new markets will account for 57 per cent of overall export value in 2013.

Currently, exports to traditional markets account for 51.8 per cent while those to new markets are 48.2 per cent.

Siripol said the ministry would apply all strategies to stimulate exports to new markets, as they offer an opportunity to grow amid low competition. However, it will continue to push exports to traditional markets, as these help enterprises to learn to develop product quality and marketing strategies.

Other strategies the ministry will continue in the second half and beyond include: conducting roadshows for selected products in target countries; encouraging officials to create new strategies to promote exports in specific areas; and setting up more than 300 international trade fairs in the domestic market to attract more foreign buyers to visit local traders.