The depreciation of the baht will not continue to benefit local exporters in the long term because of the currency's volatility, according to Export-Import Bank of Thailand (Exim Bank) president Rak Vorrakitpokatorn.
He added that exporters, especially those that are small and medium-sized enterprises (SMEs), should adjust the cost structures of their operations and focus on risk management to bolster their competitive edge.
Mr Rak said that in the middle of last year the baht appreciated to 31-32 baht against US dollar, but 4-5 months later it plunged to 36-37 baht.
The exporters' competitiveness lies not in the value of the currency, but rather in their products and services and their effective cost management, Mr Rak added.
He said there are a lot of global uncertainties which could affect Thai exporters, ranging from the Russia-Ukraine war to a worldwide recession.
Mr Rak said that exporters will in general increase the prices of their goods as part of a strategy of absorbing costs or risks. However, this approach may no longer work as their rivals adjust their products, services and cost structures to enhance their competitiveness.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), said that although many economists had predicted a global recession next year, which could affect local exports, Thai food shipments have continued to expand, with a year-on-year growth rate of 30% over the past eight months.
He also urged exporters to explore new growth markets such as the Middle East, South Asia, and Africa.
Meanwhile, Exim Bank has responded to the Ministry of Finance's policy by launching an initiative in conjunction with the Thai Chamber of Commerce and Board of Trade of Thailand, the FTI, the Thai National Shippers' Council, and the College of Management of Mahidol University. The partnership will seek to produce successful Thai entrepreneurs for the export supply chain with the launch of an intensive training/workshop programme entitled "The Top X Executive Program Class 1".
It is a short-term course for business owners and executives to develop and enhance export businesses throughout the export value chain.
