The Thai Ministry of Commerce has set its sights on a lofty goal for the coming fiscal year – increasing the value of cross-border trade by a staggering 20%, bringing it to 1.2 trillion baht from the current 1 trillion baht estimate. Deputy Commerce Minister Napintorn Srisunpang, who supervises the Business Development Department, Trade Negotiations Department and Foreign Trade Department, revealed an intricate strategy devised to reach this goal. The scheme will involve promoting a breadth of community products, geographical indication products, and franchises.
Mr. Napintorn shared insights into the ministry’s blueprint for boosting cross-border trade which includes hosting a variety of exhibitions and business-matching events. These platforms will invite national representatives from neighbouring countries and international trade associations to deliberate on strategies for diminishing trade barriers. “Proactive measures are in place, and collaborative efforts from various government departments are being mobilised for the promotion of border trade. Prime border trade regions like Chiang Rai, Mae Sot in Tak, Sadao-Padang Besar in Songkhla, Nong Khai, Surin and Buriram are set to be the pioneering zones for the roll out of our border trade promotion activities,” Napintorn divulged.
Despite confronting economic constraints in neighbouring countries such as Myanmar, Laos, and Cambodia, the ministry maintains a positive outlook. Mr. Napintorn bolstered this notion by stating his belief in Thai consumer products’ appeal in these countries, which can be attributed to their superior quality and affordability. He said, “Further enhancements will be directed towards fostering cross-border trade with China.”
The Deputy Commerce Minister recognizes the instrumental role of small and medium-sized enterprises (SMEs) in economic development and is keen on amplifying their export capacities. According to him, only about 900,000 out of roughly two million registered companies in Thailand are operational. Last year’s cross-border trade saw a growth of 5.5% from 2021, with a turnover of approximately 1 trillion baht. The majority of this was contributed by large corporations and listed companies, which constituted up to 90% of the export value. SMEs reported a dip in export income by 6% over the past year. Comparing this to developed countries where SMEs contribute around 40 to 50% of the GDP, Thai SMEs contribute a paltry 34% at present. Napintorn’s ambition is to expand the SME export income to increase their contribution to the GDP to 35.2%.
As a part of a comprehensive approach, he assigned the Trade Negotiations Department the crucial task of expediting the finalization of negotiations regarding new free trade agreements (FTAs), with bodies such as the European Free Trade Association, the EU, the United Arab Emirates, and Sri Lanka. The department is also exploring possibilities of initiating talks with new partners like Bhutan, South Korea, and Israel, as reported by the Bangkok Post.
Officials involved in trade negotiations are gearing up to interact with representatives from Malaysia, Cambodia, Laos, China, and the UK through joint trade committees. The goal is to expedite the removal of cross-border trade barriers and facilitate market expansion. Additionally, the department has also been instructed to examine the potential benefits and drawbacks of FTAs with emerging markets in the Middle East, Africa, and Latin America.
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