Sanan Angubolkul, chairman of Srithai Superware Group and head of the government’s private-sector team tasked with boosting exports and overseas investment projects, told The Nation in an interview that the public and private sectors would work together to increase the country’s export shipments by 5 per cent this year.

In addition, the team will help gear up outbound investment projects by Thai investors in Cambodia, Laos, Myanmar and Vietnam, as well as in Malaysia, to boost the economy’s competitiveness in the Asean Economic Community (AEC).

Regarding exports, he said, with Thai shipments flat last year, the government’s economic team led by Deputy Prime Minister Somkid Jatusripitak wanted to revive the export sector, so a working group was set up to focus on this issue since exports are crucial to economic growth, accounting for as much as 70 per cent of the country’s gross domestic product.

The working group’s public-sector team on exports and outbound investments is headed up by Commerce Minister Apiradee Tantraporn and consists of the chiefs of the Board of Investment (BoI), the Foreign Trade Department and the International Trade Promotion Department.

As for the working group’s private-sector team, there are 17 members, including Asawin Techacharernwikul of Berli Jucker, Prasit Boon-duangprasert of CP Food, Wasit Tae-paisitpong of Betagro Group, Chanin Wongkusolkij of Ban Pu, Prin Chirathiwat of Central Group, Attapol Reukpibul of PTT, and Kobsak Phutrakul of Bangkok Bank.

Sanan said the working group holds both weekly and monthly meetings to follow up on its tasks as part of the government’s policy to revive the economy with a growth target of 3-3.5 per cent for 2016.

“The economy has long been driven by the private sector’s activities. We are practical and know the challenges. Now, the government wants us to help in a more systematic manner, while economic and other ministries will facilitate our efforts.

“Regarding exports, the target is to grow shipments by at least 2.2 per cent this year and, if we worked hard enough, we could probably achieve an additional growth rate of 2.8 per cent, or a total 5-per-cent export expansion,” he explained.

“On outbound investments, we need to change the mindset of the BoI, which has been more familiar with inbound investment promotion for the past several decades. Now, the target is to push Thai firms to invest in neighbouring countries within the AEC.

“Srithai Group and other big Thai companies have been investing in foreign countries, especially in China, Vietnam Laos and Cambodia, for the past 20 years. We have a lot of experience to share with the public sector and smaller Thai firms,” he added.

“So far, the government still lacks a good database on Thai firms’ outbound investment activities. Besides CLMV countries [Cambodia, Laos, Myanmar and Vietnam], Thai firms should also explore opportunities in Iran, Russia and India. Iran is opening up again following the end of sanctions and has good potential for petrochemical investments, while India is good for consumer products and food items,” Sirithai’s chairman said.

Coaching by conglomerates

“On China, many analysts talk about an economic slowdown, but I think the Thai government should pursue government-to-government business deals, especially for agricultural products. For CLMV, exporters should focus on more sales of automotive and electronic products, as well as on commodities such as sugar, rice and farmed woods,” he suggested.

The working group’s private-sector team has also proposed a system of large companies helping smaller ones, with the CEOs of all 15 participating conglomerates agreeing to coach a total of 45 firms at a 1:3 ratio, in order to share resources and expertise in implementing overseas investment projects.

For example, Berli Jucker, which recently purchased Vietnam’s retail giant Metro, is ready to help smaller firms do business and invest in Vietnam, while Central Group, Srithai Group and other major Thai investors in Vietnam would also participate in the coaching programme, Sanan said.

CLMV countries plus Malaysia and Thailand have a combined population of more than 230 million, which could be viewed as a combined single market for Thai companies, he said, adding that the government should also set aside a budget to hire lobbyists in these countries to create a network of connections that would facilitate trade and investment flows.

After that, Thailand also needs to set up an agency similar to the Japan External Trade Organisation to deal with trading-partner countries in the AEC, he said.