Emerging markets targeted for exports

Petchanet Pratruangkrai

The Nation May 22, 2013 1:00 am

The Commerce Ministry will focus on boosting exports to Myanmar, India, Russia and CIS, Australia, Africa and the Middle East to compensate for losses to China, Latin America and South Korea.

At the ministry's meeting yesterday with 65 Thai trade counsellors posted overseas, private-sector representatives and the Bank of Thailand, the consensus was that the baht's strength and sluggish global trading would make it more difficult to achieve the high export target this year.

Commerce Minister Boonsong Teriyapirom, who chaired the meeting, announced a revision to the growth forecast for exports to 7-7.5 per cent this year to between US$245 billion and $246 billion (Bt7.30 trillion to Bt7.33 trillion), down from the previous projection of 8-9 per cent.

Shipments to China, Latin America and South Korea have been hit the hardest by the baht's appreciation.

Representatives of the private sector questioned the government's plan to tame the baht after the Bank of Thailand proposed four measures to curb its rise, but no concrete action

has been taken.

A source from private sector said the measures that have been announced should slow down capital inflows and weaken the baht. Printing more money to purchase bonds might be another possibility.

Pongpen Ruengvirayudh, a deputy governor of the central bank, said exchange-rate management could take several forms. However, it should be balanced and look at the

impact in the medium to long run. The central bank needs to ensure a stable currency to balance both imports and exports.

The baht has the tendency to move up in the short term. It would be difficult to intervene. The BOT understands that the private sector does not want to see the baht at 28-28.50 against the US dollar in the short term. However, the baht has reflected strong economic growth. The government could stimulate more investment by the private sector, she added.

During the ministry's meeting, the 2013 export-growth forecasts for China, Latin America and South Korea were cut.

China was reduced to 5-6 per cent from 8 per cent and Latin America to 10 per cent from 15 percent, while South Korea was revised from a 5-per-cent expansion to a 3-per-cent decline. However, the ministry has more confidence that it can drive exports to emerging markets.

Exports to Myanmar are now projected to grow by 45 per cent this year, up from 30 per cent. India will double from 5 per cent to 10 per cent, Russia and the Commonwealth of Independent States will improve from 5 per cent to 12 per cent and Africa will rise

from 5 to 8 per cent.

Shipments to the Middle East and Asean will advance by 5 per cent each, according to the ministry's forecasts.

Latest stories in this category

• Fresh battle bubbling over whether to cut policy rate


• A new battle is brewing between the government and..


• Auction of TV licences to be delayed


• Emerging markets targeted for exports

We Recommend

• Facebook isn't the place to let off tension


• At 60, Singaporean Prime Minister Lee Hsien Loong..


• Three Hmong charged with drug trafficking


• Framework for Bangkok's development

Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.

Article source: http://www.thethailandlinks.com/2013/05/22/emerging-markets-targeted-for-exports/