Somkid tells ministry to raise 2016 target to 5% growth

The government has set an ambitious goal of driving export growth to 5% next year despite state planning units and exporters forecasting only 2-3%.

Deputy Prime Minister Somkid Jatusripitak yesterday told the Commerce Ministry at the first meeting of the International Trade Development Committee to raise its export target to 5% growth, double that proposed by the Commerce Ministry.

The National Economic and Social Development Board forecasts export value will contract by 5% this year, recovering to 3% next year, while the Thai National Shippers’ Council predicts export growth of only 2% in 2016.

Mr Somkid said the target should be set relatively high to put pressure on government officials to play a proactive role in driving the export sector, which accounts for 70% of GDP.

With the global economy expected to recover next year, an export growth target of 5% next year should be possible, while the value of exports each month should reach US$18 billion, he said.

Mr Somkid said jewellery and ornaments were expected to become an important category, generating more than 100 billion baht a year.

However, the Finance Ministry must address the existing tax structure, which hinders jewellery exports, he said.

The industry has urged the government to exempt value-added tax on raw materials and waive import tariffs on machinery and equipment as well as exempt tariffs on semi-finished silver products.

There are 37,000 entrepreneurs in the j ewellery and ornaments sector, 99% of which are small and mediumsized enterprises.

Deputy Commerce Minister Suvit Maesincee said the government would next year focus on promoting service industries, particularly wellness and medical services, logistics, tourism, and digital content and entertainment.

The export of wellness and medical services fetched 320 billion baht last year, with the figure expected to rise to 362 billion baht next year.

Mr Suvit said the ministry was also required to become proactive in significant markets including Japan, Russia, China, India and Africa and must stimulate border trade with Cambodia, Laos, Myanmar and Vietnam.

Nonetheless, the meeting yesterday did not come up with any declaration of Thailand’s official stance on the TransPacific Partnership (TPP) or the China-led Regional Comprehensive Economic Partnership, as earlier reported.

Commerce Minister Apiradi Tantraporn said the International Trade Development Committee approved the establishment of a working panel chaired by her to study the feasibility of joining the TPP.

The panel includes ministers from the Agriculture, Industry, Transport, Finance, Public Health and Foreign Affairs ministries, representatives from the Bank of Thailand and representatives from the Federation of Thai Industries, the Thai Chamber of Commerce, the Thai Bankers’ Association and the Thai National Shippers’ Council as well as academics and civil society representatives.

It will be tasked with studying strengths and challenges in joining the TPP and conducting an in-depth analysis on the impact.