WASHINGTON: The government has set an export growth target of 5% next year, banking on a global recovery, state stimulus measures and development of special economic zones (SEZs).
According to Malee Choklumlerd, director-general of the International Trade Promotion Department, exports will fetch an estimated US$225 billion in 2016, boosted by promising prospects for automotive and parts, gems and jewellery, frozen and processed chicken, electronics, electrical appliances, construction materials, machinery and parts, cosmetics and pharmaceuticals, gifts and souvenirs, and home furnishings and decor.
Other sectors such as spa and healthcare services, entertainment, transport and logistics, education, hospitals, and construction are expected to be instrumental to export growth in the year ahead.
The Commerce Ministry is upbeat about shipments to Cambodia, Laos, Myanmar and Vietnam, as well as Australia, India, China, the US and the EU. Lower shipments, however, are expected for Japan, the Middle East and Africa.
“The 5% growth target is based on the prediction by the International Monetary Fund that the world’s economy will grow by 3.6% in 2016 after an estimated 3.1% rise this year,” Ms Malee said. A further boost will be provided by stimulus measures introduced by the government in 2015, as well as industrial clusters, SEZs and support for investment in 10 targeted industries.
The cabinet endorsed a plan last month to attract investment in 10 industries after a Finance Ministry study found that private investment had receded continuously over the past decade.
The 10 industries are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
Last month the cabinet also approved in principle a Finance Ministry proposal to set up a 10-billion-baht fund to support investment in the 10 industry clusters. The fund will help investors gain easier access to financial support to accelerate investment in the cluster project.
To achieve the target, the Commerce Ministry will stimulate Thai shipments through key strategies such as greater market access and economic cooperation; a demand-driven marketing approach; border trade expansion; outbound investment support and facilitation; small-business and innovation development; and value-added industrial products. Negative factors that may curb exports include low oil prices, China’s economic slowdown and EU penalties for illegal, unreported and unregulated fishing practices.
