Many government agencies as well as the private sector were involved.

Under the Commerce Ministry, there was the Internal Trade Department, International Trade Promotion Department, Foreign Trade Department, Business Development Department and the Intellectual Property Department.

The Industry, Interior and Agriculture ministries were also cooperating.

The project targets increasing incomes for local farmers by 15 per cent this year, border trade by 15 per cent and the number of Thai businesses operating in border provinces by 20 per cent from the current 96 firms.

Malee Choklumlerd, director-general of the International Trade Promotion Department, said to promote overseas trade, the government will focus on spending to drive trading and investing overseas, as well as to promote tourism.

The department will help train local enterprises on how to do business abroad, boost their brands from the current 500 to 650 in five years and make their Thai brands known internationally.

Thailand has about 10 brands that have been accepted as global brands. The government has targeted 40 more brands in five years.

The government will usher more Thai enterprises into the e-commerce business. Thailand has 20,000 online traders now. That base will expand to 100,000 traders in three years and 200,000 in five years.

Wiboonlasana Ruamraksa, director-general of the Internal Trade Department, said that to stimulate the local economy, money will be spent showing local farmers and businesses how to produce crops and farm products that better serve the demands of the market.

The government will also move to develop local markets into central markets for farm goods, and to set up distribution centres connecting farmers to consumers.

The government will support the development of each village into a trading village, starting with at least 10 villages, she said.

Confidence for investment extends from connectivity of small and medium-sized enterprises, knowledge for technological development and promotion of Thailand as one of the region’s manufacturing bases, he said.

“If Thailand can be strengthened, its connectivity can be established for manufacturing bases. And Thailand will take part in these manufacturing bases from upstream to downstream. We also have to tell them our problems and have discussions,” Prayut said.

OMAN, THAILAND AIM TO TRIPLE TRADE IN 5 YEARS

The two countries’ ministers for foreign affairs also signed a letter of interest for establishment of a “Thailand Future Fund” for joint investment in Thailand’s infrastructure.

Somkid, who led Thailand’s economic ministers and representatives of more than 20 private enterprises to Oman, said it was the first time the two countries had officially negotiated on trade and investment.

At present, bilateral trade is worth US$1.2 billion (Bt42 billion) annually. Their five-year target is to triple that amount.

Somkid said there were opportunities for Thai investors in Oman, particularly in the hotel, property and health businesses.

He said Oman was opening special economic zones and wanted Thailand to invest more. Special trade privileges and duty-free benefits will be provided for those investing in chemical production, ore, medical products, and halal processed food.

In June, Omani businessmen will visit Thailand.

Oman also supports Thailand having free-trade agreements with the other Gulf Cooperation Council countries, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar and Bahrain.

FIRST 2016 RICE AUCTION

SET FOR FEBRUARY 16-17

The Commerce Ministry is scheduled to open bidding for 570,000 tonnes of rice on February 16 and 17, the first auction of the year, for supply to consumers and industry sectors.

Duangporn Rodphaya, director-general of the Foreign Trade Department, said that of the total of 570,000 tonnes, 204,000 tonnes of good-quality rice was earmarked for sale in the local and overseas markets, while about 360,000 tonnes of deteriorated rice (Grade C) would be sold to feedmeal and non-food producers, among others.

The ministry will clarify the conditions of the auction tomorrow, and allow traders to check rice quality from today until February 10. On February 11, the ministry will allow traders to submit their qualifications for background checking.

Bidding will open on February 16 for good-quality rice, followed by bidding for low-quality stock the following day.

“Inflation looks like remaining negative in the first quarter of this year, but it could possibly turn to positive growth depending on the oil-price movements. If oil rises above $30 per barrel in the second quarter or in the second half of the year, inflation could regain positive figures. The factors that require close monitoring include Iran beginning to export oil again and the impact of drought,” Somkiat Triratpan, inspector-general at the ministry and director of its Policies and Trade Strategies Bureau, said yesterday.

He insisted that although inflation continued to be negative, Thailand was not facing a deflationary period as spending power has increased slightly despite lower crop prices.

However, if the oil price continues to decrease, inflation will still be in negative territory for the remainder of this year, he said.

Fuel costs down

Last month, the CPI continued to decrease as domestic fuel prices were 15.3 per cent lower year-on-year, along with decreased prices of transport, cooking gas and some foods. Prices of some fresh foods, poultry, dining out, rental fees, and alcohol and tobacco increased last month.

The ministry expects that inflation for the whole year will range between 1 and 2 per cent. This is based on an assumption that gross domestic product will grow by 3-4 per cent, the baht will range between 36 and 38 against the US dollar, and the price of Dubai oil will be $48-$54 per barrel.

Last month, core inflation – excluding volatile fuel and food prices – was slightly positive, at 0.59 per cent year on year and 0.07 per cent month on month.