Border commerce targeted to grow 15% in 2019 to B1.6tr

Northern Thailand border trade atmosphere.

The government has set a target to grow the country's overall border trade by 15% in the year to come to 1.6 trillion baht.

Adul Chotinisakorn, director-general of the Foreign Trade Department, said the growth target will be supported largely by trade talks with neighbours to reduce obstacles to border trade as well as the government-initiated Young Entrepreneur Network Development Programme (YEN-D).

Launched in 2015 to encourage Thai entrepreneurs to invest in neighbouring countries, the YEN-D programme features familiarisation trips and special training courses for young business people in Cambodia, Laos, Myanmar, Vietnam and Thailand to better understand each other's cultures and regulations.

To be selected, Thai entrepreneurs have to be under 45 and come from families that have businesses. Governments in other participating countries have similar criteria.

The YEN-D programme covers more than 1,200 young entrepreneurs in Thailand, Myanmar, Laos, and Cambodia.

In 2019, Mr Adul said the department will expand YEN-D network to cover young entrepreneurs from Vietnam and promote business links between Thailand's Sa Kaeo province and the Luang Prabang-Indochina-Mawlamyine Economic Corridor (LIMEC).

He said the Commerce Ministry is scheduled to talk with Laos and Cambodia to set up a joint commission to tackle the obstacles to border trade at permanent checkpoints after the Thai government convinces Myanmar's authorities to accept electronic exchanges for Form D.

Form D is the preferential Certificate of Origin.

Form D helps reduce the inspection approval to a half-hour at Mae Sot checkpoint and two days for other checkpoints.

Previously, it took several days for the inspection approval process.

In a related development, the Foreign Trade Department reported overall cross-border trade, including transit trade in the first 11 months, totalled 1.27 trillion baht, up 5.81% from the same period last year.

Of the total, border exports represent 714 billion baht, down 0.39% year-on-year, and border imports were worth 564 billion baht, up 14.9%.

Thailand's border trade with all four neighbours rose 4% for the period to 1.03 trillion baht, with exports making up 598 billion baht, down 0.38%, and imports worth 434 billion, up 10.7%.

Malaysia was the biggest partner for border trade, accounting for 51.1% of the total, followed by Laos (19%), Myanmar (17.2%) and Cambodia (12.7%).