Thai Exports Expected To Rise By 12%.

The Commerce Ministry has revised Thailand's export growth target for this year to 12% from 10% due mainly to growing Asian and emerging markets.

The 12% growth of export value accounts for about US$219 billion or almost 7 trillion baht, said Commerce Minister Porntiva Nakasai.

She said the factors which would drive Thailand exports this year were growing Asian markets, particularly the markets of the Association of Southeast Asian Nations (Asean) in which Thailand's exports are expected to rise 23%, followed by China which should rise by 20% and India by 18%.

Other favourable market are the United States, the European countries and Japan whose governments will pump huge revolving capital into their economies, enabling them to expand trade and investment.

Ms Porntiva said Thailand's exports to emerging markets such as Russia, the group of the Commonwealth of Independent States, Africa and Latin America are also expected to significantly grow this year.

In addition, border trade between Thailand and neighbouring countries including Cambodia, Laos, Burma and Malaysia are expected to increase by 22% this year to about 900 billion baht and expected to reach one trillion baht next year.

Export of Thailand's agriculture products would reap benefits from rising commodity prices. Important goods shipments which will drive the country's exports include rice, of which exports are expected to rise by 5% to 9.5 million tonnes. The average rice price is projected to increase to US$600 per tonne from $578 last year.

Cassava exports are expected to reach 6.9 million tonnes this year to a value of 70 billion baht.

However, negative factors are expected to emerge and affect the country's exports.

They include natural disasters and global warming which could cut agriculture production, the use of agricultural products to produce alternative energy, violence in the Middle East and Africa, volatility in the foreign exchange markets, and rising energy prices.

She said the ministry would encourage Thai exporters to add value to their products via creative economic campaigns which promote creativity in export and service industries.

Ms Porntiva said despite these unfavourable factors, the Commerce Ministry has projected the Thai economy this year would grow to 4.5% while the ministry would try to keep the inflation rate not to more than 3.7%.

The Commerce Ministry reported the inflation rate for March at 3.14% year-on-year due mainly to rising food and fuel prices.

Source : bangkokpost.com