State seeks ways to raise shipments
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State seeks ways to raise shipments

Trucks and trailers load containers at Laem Chabang port in Chon Buri province. Trade ministers from 65 offices worldwide will meet next month in Thailand to find ways to help boost exports. APICHART JINAKUL
Trucks and trailers load containers at Laem Chabang port in Chon Buri province. Trade ministers from 65 offices worldwide will meet next month in Thailand to find ways to help boost exports. APICHART JINAKUL

The government is scheduled to call a joint meeting of Thai commercial counsellors and trade ministers from 65 offices worldwide next month to evaluate exports in the remaining months and map out new strategies to boost shipments in the year to come.

Malee Choklumlerd, director–general of the International Trade Promotion Department, said the meeting would be held from Sept 7-11.

The new export promotion strategy would be in tandem with Thailand 4.0 -- an economy based on creativity, innovation and high-level services -- and the government's 20-year national strategy blueprint, she said.

The government hopes the 20-year strategy will help keep the changes pushed by the National Reform Council alive even during the tenure of future governments, though it denies it is trying to impose its will on them.

The two-decade strategy will cover security, the economy, social issues, legal and foreign affairs.

Infrastructure development projects such as the single and double-rail projects, high-speed trains, and efforts to reduce social disparities and tackle labour issues will be included in the strategy.

Each stage of the national strategy will proceed in tandem with each of the National Economic and Social Development Board's development plans.

The immediate aim of the strategy will be to extricate the country from the middle-income trap, eradicate poverty, boost economic strength and stability, promote national security and restore natural resources.

For the rest of this year, the government is determined to drive shipments, particularly of 30 items.

Products will be divided into four categories: those that need state stimulus (cars, plastic pellets, refined sugar and canned and processed fruits); those that need government support (cars, gold and air conditioners); those that need close monitoring and correction (rice, rubber, electrical appliances and processed seafood); and those that need speedy and immediate correction (computers, plastic pellets, gems, electrical appliances and chemicals).

Mrs Malee said the authorities discussed with manufacturers and business operators in each division how to evaluate the prospects of each item in order to facilitate export stimulus measures.

"Authorities have so far talked with automotive industry executives who predict car shipments may see a contraction this year, as potential buyers are still reeling from low oil prices while the world's overall economy has yet to fully recover," she said.

Mrs Malee added that overall exports face several risk factors which need close monitoring, including a tepid global economy, terrorism, volatile foreign exchange, low oil prices and the impact of Britain's exit from the European Union.

The Commerce Ministry reported last month that exports have started to see signs of recovery and contracted less than expected in June, boosted by shipments of cars and car parts, hard-disk drives and gold.

Exports fell by only 0.1% year-on-year in June to US$18.1 billion after sliding by 4.4% in May and 8% in April.

Imports declined by 10.1% to $16.2 billion after edging up 0.5% in May following a 14.9% plunge in April.

Thailand had a trade surplus of $1.96 billion in June -- the 14th straight month with a surplus.

The ministry reported exports of agricultural and agribusiness products shrank by 7.9% to $2.58 billion in line with slowing demand in the world market and relatively low oil prices.

The drop was led by rubber (-23.2%), tapioca products (-36.3%), sugar (-8.7%) and rice (-0.2%).

Exports of industrial products bounced back to expand for the first time in three months, up 3.1% to $84.3 billion after dropping by 2.8% in May.

The rise was mainly driven by cars and car parts, electric circuits, air conditioners and hard-disk drives.

For the first six months, shipments shrank by 1.6% year-on-year to $105 billion, while imports totalled $92.7 billion, a fall of 10.2%. Thailand had a trade surplus of $12.4 billion for the period.

The Commerce Ministry predicted brighter prospects for exports in the second half, driven by higher shipments of cars and key industrial products alongside a recovery of farm product prices in line with higher oil prices.

The ministry estimated oil prices will stabilise somewhere above $40 per barrel this year.

Deputy Commerce Minister Suvit Maesincee said the ministry expected exports for the entire year would stay in a range of -1% to 1%.

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