Thai shippers Tuesday raised their export growth forecast to 8% this year from an earlier 6% projection, buoyed by the economic recovery of both traditional trading partners and potential new markets.
According to Ghanyapad Tantipipatpong, chairwoman of the Thai National Shippers' Council (TNSC), Thailand has done well in diversifying export destinations, reducing its dependence on particular markets.
She said industrial products makers, especially in electronic parts, are keeping pace with the Internet of Things and other technology shifts, while crude oil prices are trending upward, boosting the prices of farm and oil-related products.
The government's commitment to promote e-commerce development should also increase export opportunities and distribution channels for Thai products.
"The group of exporters is feeling quite positive about the country's overall export prospects, with export growth momentum expected to continue until the end of this year after the first quarter's robust growth," Ms Ghanyapad said.
The Commerce Ministry reported on April 23 that the country's customs-cleared exports grew 11.3% year-on-year in the first three months of the year to $62.82 billion (over 2 trillion baht), with imports rising 16.2% year-on-year to $60.9 billion. Thailand enjoyed a $1.95-billion trade surplus during the period.
Despite the strong baht's challenge, the ministry is targeting export growth of 8% this year after a 9.9% rise last year.
Ms Ghanyapad said exporters themselves have also been monitoring the strong baht, citing the currency's appreciation for March's reduced export income of 697.074 billion baht, down 4% year-on-year.
According to Ms Ghanyapad, other risk factors include a looming trade war between China and the US, Syrian unrest and sluggish prices for some agricultural items.
The TNSC has asked the government to inform small and medium-sized enterprises about the negative impact of baht gains and advise hedging to guard against foreign exchange risk.
SMEs themselves are being urged to monitor the impact of the possible trade war between China and the US to prevent losses.
Ms Ghanyapad said the government should accelerate bilateral and multilateral trade negotiations, including on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership, as a means to protect the country's trade interests and increase bargaining power.
The government's cooperation with Chinese e-commerce giant Alibaba is also seen as a good step to increase distribution channels for Thai goods. But exporters want the government to supervise quality standards and pricing of goods to curb any adverse impact on domestic prices.
Visit Limlurcha, vice-chairman of the TNSC, said exporters feel relieved about the baht's strength as the local currency holds firm at 31.50 baht to the US dollar.
If the baht weakens to 32.50, he said, all supply chains in export industries will benefit.