State to pump up exports

The government plans to help pump up shipments in four target industries this year in an effort to offset tepid exports overall.

Commerce Minister Chatchai Sarikulya said all of the sectors are in heavy industries: automotive and auto parts, computers and parts, integrated circuits, rubber products and machinery; agriculture and food; petrochemicals and gems and jewellery.

These industries account for 57% of Thailand’s overall export values.

The ministry wants to lift heavy industry exports to US$53.63 billion at yearend from $33.08 billion in the first five months, with the shipments for agriculture and food rising to $12.41 billion from $7.57 billion in the first five months, and petrochemicals gaining to $9.99 billion from $6.29 billion.

For gems and jewellery, the ministry aims to raise exports to $4.82 billion from $2.97 billion in the first five months this year.

Gen Chatchai said the ministry would call a joint meeting with executives of those industries and later collectively map out action plans to increase their shipments this year.

International roadshows will also be held this year for those industries.

He said the ministry would first call a joint meeting next week with chief executives of automakers including Toyota, Honda, BMW and Mitsubishi to discuss their export plans and government support plans before international roadshows are hosted by the ministry this month.

Federation of Thai Industries (FTI) figures show car exports surged t o 499,299 completely-built units in the first five months, up 9.47% year-on-year, with export values at 230 billion baht, up 6.78%.

Last year Thailand shipped 1.12 million units, fetching 527 billion baht. The volume of the shipments was unchanged from 2013, but value rose by 3%.

The FTI expects auto shipments will exceed 1.2 million units this year as most car makers try to raise exports to offset the sluggish domestic car market.

He said despite the country’s overall export contraction in the first five months, the government was maintaining its fullyear forecast for export growth at 1.2%, anticipating a better performance in the second half. In the first five months exports shrank 4.2% year-on-year to $88.7 billion.

On Tuesday, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) forecast exports would contract by 2% this year, down from growth of 1%. The JSCCIB also cut its Thai GDP forecast to 3% from 3.5%.

The committee attributed the downgrade to weak demand from Thailand’s major trade partners, such as the US, the EU and China, leading to a sharp drop in exports.

Earlier on June 19, the Bank of Thailand trimmed its full-year forecast for exports to a 1.5% contraction, down from 0.8% growth previously.