In a bid to bolster Thailand’s exports and invigorate the economy, the Ministry of Commerce has unveiled an ambitious plan to organize up to 350 export stimulus activities in the second half of this year. The initiative was highlighted by the Permanent Secretary for Commerce, Keerati Rushchano, during a joint meeting with foreign commercial counselors and representatives from the private sector on May 25. The objective of these activities is to elevate the value of exports by an estimated $550 million (equivalent to 19.4 billion baht).
To streamline and expedite the export process, a dedicated task force, nicknamed the “war room,” will be established by the ministry. This task force will collaborate closely with both public and private sectors to ensure a seamless flow of exports to targeted markets. These markets, identified as having growth potential amid the global economic slowdown, include the Middle East, South Asia, Cambodia, Laos, Myanmar, Vietnam, and China.
The ministry has devised a comprehensive strategy to achieve its export goals, which encompasses a range of approaches. One key strategy involves venturing into new markets while also nurturing existing ones and revitalizing older ones. To expand market potential, the ministry plans to establish trade representative groups. Additionally, they will actively promote cross-border e-commerce, engage in online and offline business partnership negotiations, and explore other avenues of growth.
Moreover, the ministry intends to prioritize secondary city markets, especially within the Association of Southeast Asian Nations (ASEAN), the United States, and Europe. By focusing on these markets, the ministry aims to exceed its initial export target range of $289-292 billion for the year. The target of $550 million in the second half of the year is projected to elevate the total export value to approximately $290-293 billion.
However, exporters in Thailand face several challenges that could impede the success of these efforts. Factors such as a sluggish US economy, a slow recovery in China, and fluctuations in the value of the baht pose significant hurdles. Furthermore, exporters have expressed concerns regarding the recently announced minimum wage increase, which could discourage new investments in Thailand and prompt existing businesses to contemplate relocation to other countries.
To instill confidence among investors, the Thai Chamber of Commerce has proposed a more inclusive approach to minimum wage adjustments. They suggest the formation of a tripartite committee that considers the opinions of business owners, rather than relying solely on political policies. This approach takes into account the potential impact of wage increases on industries such as agriculture, small and medium enterprises (SMEs), tourism, and labor-intensive service sectors.
As the Ministry of Commerce spearheads these export stimulus activities, the success of Thailand’s export sector will not only contribute to economic growth but also serve as a testament to the country’s resilience in the face of challenging global conditions.
