Promotional Policy

 

The Ministry of Commerce projections for 2002 are that Thailand's exports will reach a total value of US$ 69.000 billion, which would represent an increase of 5.5 percent over the year 2001. The government's export promotion strategy, and close collaboration between the public and private sectors, is expected to be the main driving force behind this increase, along with improving economic conditions in the major markets, namely the United States and European Union, predicted to recover growth momentum by the second half of 2002. Thailand's increasing export performance in newer markets such as China and India, both of them having enormous potential for Thai exporters, is also going to be an important factor in overall export performance.

 

Thailand's policy of export promotion is a continuous one, and the Ministry of Commerce has drawn up a master plan for 2002 that lays out a precise strategy to achieve the targets. On the domestic front, overcoming the obstacles and problems that face exports is a priority, and consequently urgent measures are being undertaken with the relevant organizations to ease financial liquidity, speed up the processing of value-added tax reimbursement, and restructure the import taxes on imported raw materials. On the international front, the master plan will increase the efficiency of the export services.

One significant marketing strategy is to expand the volume of Thai exports into new markets such as China, India, Eastern Europe and the African countries. Exporters will be supported in these markets by an image building campaign and specific promotional activities such as the Thailand Exhibition in order to increase export channels.

 

China is the primary focus of this strategy, as its WTO membership will have a great impact on the Thai economy both as having China as a trading partner and a competitor. With WTO membership, it is feasible that China can take a large part of Thailand's share from other export markets, so Thai manufacturers and exporters need to improve their quality and competitiveness. Conversely, China itself, with a 1.3 billion population, represents a vast market now that its regulations for importing goods and services have been relaxed under the WTO terms. This is beneficial to Thai exporters who now have more channels for exporting their goods and services to China, especially in sectors such as agricultural products, construction services, restaurants, education, and hospitals.

The DEP has implemented a policy to strengthen trading relationships with Thailand's neighboring countries, based on generating benefits for both sides by expanding international trading through promoting the account trade, as well as supporting trading through "gateway" countries that have more flexibility in the import-export business with surrounding countries.

 

During 2002, the Ministry of Commerce is preparing to appoint 19 Honorary Trade Advisors to Ministry of Commerce (HTA) within those countries where there is no Office of Foreign Trade Promotion. The HTAs will act as advisors and promoters for Thai trading and business. They will be selected from personnel living in these countries, and will hold their position for three years at a time. The first HTAs to be appointed will be in South Africa, Madagascar, Namibia, India, Japan, the United States, Ukraine, Iran, the Philippines, France, United Arab Emirates, Oman, and various countries in the Caribbean.

Another strategy for promoting exports in 2002 is to place emphasis on those industrial sectors that utilize a high proportion of raw materials to be found in Thailand, and those that are manpower intensive. Statistics reveal that there are 22 major categories of exported goods and products that in total account for US$ 51 billion, representing 74 percent of the grand total export value. These groups generate US$ 22.488 billion in currency circulation, and employ 24.15 million people. The first priority amongst them is the food processing industry, 90 percent of whose raw materials come from within the country. By promoting this sector, the agricultural and fisheries sectors will also directly benefit.

Amongst the service sectors, the DEP is supporting sectors such as construction services, restaurants, and education and hospitals to expand their businesses outside the country. Thai service sector entrepreneurs are recognized as having great potential overseas, and this initial promotion will lay the foundations for a greater market in services for Thailand in the future.

 
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