The government has trimmed the export growth target to 3% this year from 8% earlier, blaming the global economic slowdown, the deepening trade row between the US and China and political uncertainties in Europe.
According to Deputy Prime Minister Somkid Jatusripitak, exports are likely to fetch US$260 billion this year, down from $270 billion projected earlier.
Mr Somkid chaired a joint meeting yesterday with the directors of 58 trade offices overseas and the private sector, including the Thai Chamber of Commerce, the Thai National Shippers' Council (TNSC) and the Federation of Thai Industries.
"Apart from weak global demand, the ongoing trade war has taken a heavy toll on shipments, particularly of electronics, automobiles, garments, rubber and plastics, which are linked to the US-China supply chains," he said.
The Commerce Ministry's latest report said exports fell by 1.9% to $80.5 billion in the first four months this year. Imports shrank 1.1% in the same period to $80 billion, yielding a trade surplus of $550 million for the period.
The ministry said earlier that Thailand's export trends were aligned with global sentiment and those of other Asian countries, making export prospects murky because of the escalating trade war.
The ministry also found that Thailand had lost market share for certain products such as automobiles. For instance, Australia is importing more electric vehicles (EVs) from China and Germany and reducing imports of petrol-fuelled vehicles. Thailand needs to find new trading partners and rev up manufacturing of EVs, the ministry said.
Mr Somkid said shipment focus needs to be on other potential markets such as India, where economic growth is expected to be as strong as 7% this year.
The Commerce Ministry needs to work with the Board of Investment and the Tourism Authority of Thailand to promote investment and tourism, stimulating the economy while continuing aid measures to farmers to upgrade their productivity and product quality.
The development should focus on technology and innovations, while e-commerce will be an important tool to help boost farm product prices, Mr Somkid said.
The government also pledges to help reduce logistics costs and improve the customs process, as well as promote the use of local currencies in trading with Cambodia, Laos, Myanmar and Vietnam (CLMV).
"Food, construction, furniture and garment products still have high potential," Mr Somkid said. "Japan and CLMV are also important export markets that can help cushion the impact of the ongoing trade row."
Banjongjitt Angsusingh, director-general of the International Trade Promotion Department, said that to achieve the 3% growth target, export volume must reach an average $22.45 billion a month in the next eight months. The department will focus on promoting shipments of agricultural products, food and cosmetics.
Ghanyapad Tantipipatpong, chairwoman of the TNSC, said achieving an average of $22 billion a month for the rest of the year would be hard, given overall weak global demand.