With Thai exports likely to contract, overseas commercial counsellors provide crucial support on the front lines, promoting the main contributor to the country's economy.
While the government is trying to stimulate other sectors, if exports decline Thai GDP is expected to shrink.
Overseas commercial counsellors need to adapt during difficult conditions because continuing with the same methods would be ineffective.
What sets commercial counsellors apart from other diplomats is they must have a strong business-oriented approach. They have to work more like private sector professionals, taking a hands-on approach to their work.
That is why Prime Minister Srettha Thavisin recently issued an urgent directive to Commerce Minister Phumtham Wechayachai to convene a meeting in Thailand of commercial counsellors from around the world to help ramp up promotional activities to increase investment and tourism, apart from trade.
The aim was to organise a workshop to stimulate trade, foreign investment and tourism as quickly as possible.
In countries where there were fewer commercial counsellors, the Mr Srettha ordered an expedited increase in their numbers to help meet the goals.
Who are commercial counsellors?
Commercial counsellors are government officials under the Commerce Ministry who are assigned to work in foreign countries.
Their primary role is to promote trade between Thailand and the country where they are stationed, with a focus on Thai exports.
The Commerce Ministry has 64 foreign offices in 44 countries, second only to the Foreign Affairs Ministry in terms of foreign offices.
Offices operating under the supervision of the Department of International Trade Promotion (DITP) are responsible for promoting markets in 58 locations worldwide across seven regions, comprising Europe and the Commonwealth of Independent States with 13 offices, the Americas and Latin America (10), Asean (nine), China (nine), Africa and the Middle East (nine), South Asia (four), and East Asia and Oceania (four).
In addition, offices supervised by the commerce permanent secretary primarily focus on negotiations with international regimes and various regulations. These four offices comprise the Permanent Representative of Thailand to the World Trade Organization and the World Intellectual Property Organization in Geneva, Switzerland (headed by an ambassador), and commercial offices abroad in Brussels, Belgium, Washington, D.C. and Beijing.
There are also two specialised offices known as "Representative Offices for Promoting Trade Abroad" under the DITP in Hiroshima, Japan and Siem Reap, Cambodia. These offices are staffed by local personnel responsible for conducting operations on behalf of the respective agencies.
What is the role of commercial counsellors?
Commercial counsellors act as sales representatives for the country by identifying and engaging with target importers who have a demand for Thai products.
They work on increasing the number of importers by facilitating business negotiations with Thai entrepreneurs and maintain importer relationships through continuous communication.
Counsellors monitor the payment and delivery of goods from Thai importers and exporters, working to coordinate solutions that are acceptable to both parties in case of contract breaches.
These agents also keep track of economic and trade developments as well as regulations and incidents in the region that may affect Thailand's trade. They report these findings to the Commerce Ministry and Thai entrepreneurs to allow for timely adjustments.
Counsellors compile in-depth product information on potential strengths, weaknesses, opportunities and threats, along with recommendations for expanding markets.
They disseminate this information to Thai entrepreneurs interested in expanding to foreign markets.
The officials also organise promotional activities for Thai products in foreign countries, such as Thai product exhibitions as well as sales promotions in stores, hypermarkets, supermarkets and online markets.
Counsellors build and maintain relationships with trade partners, such as chambers of commerce, trade associations and international business organisations, encouraging them to purchase Thai products and facilitate trade-related government agencies.
Exports goods containers are seen at the Laem Chabang port in Chonburi province, Thailand. While the government is trying to stimulate other sectors, if exports decline Thai GDP is expected to shrink. Pattarapong Chatpattarasill
How important are commercial counsellors for Thai trade?
The terms commercial counsellor or commercial diplomat originate from the practice of government officials being assigned by the Commerce Ministry to serve as the heads of trade offices in foreign countries.
These individuals are part of the Thai diplomatic team responsible for promoting trade.
Commercial counsellors are required to be experts, specialising in economics, trade, investment and markets. They act as intermediaries for investment activities, particularly in cases where the foreign country does not have a Board of Investment (BoI).
Over the past 90 years, commercial counsellors have consistently contributed to the growth of Thailand's trade.
They are instrumental in Thai shipments of crops, processed agricultural items and industrial products such as rice, fruit, canned seafood, canned pineapples, rubber products, gems and jewellery regularly ranking highly in the global market.
Commercial counsellors facilitate exploration of new markets, creating opportunities for Thai entrepreneurs to expand their businesses, while also seeking out raw materials and technological advancements to support the development of Thailand's manufacturing industry.
These agents collaborate with the private sector to set export goals and identify target markets, as well as organise market promotion activities and resolve trade-related obstacles.
The counsellors also serve as a form of "soft power" to promote Thailand's image and products, establishing trust among international trading partners and increasing global awareness of Thai products.
How can these offices expand their roles to stimulate tourism and investment?
Arada Fuangtong, deputy director-general of the DITP, said she has consulted certain commercial counsellors overseas and the premier's directive sounds feasible.
The new government wants to promote soft power, which should lead to more effective and seamless operations, she said.
The counsellors must collaborate with the BoI and Tourism Authority of Thailand (TAT) to facilitate the exchange of business contacts, introduce target customer groups, and jointly organise seminars for trade, investment and tourism promotion, said Ms Arada.
This synergy can enhance the efficiency and effectiveness of their missions, she said.
What government support is needed for counsellors to promote investment and tourism, as well as increase collaboration with other diplomats?
Ms Arada said the government needs to centralise policy coordination for economic agencies based abroad, such as planning joint projects and activities to align schedules, enabling broader and more beneficial outcomes.
The administration also needs to address issues for Thai investors abroad, such as in India where they face difficulties regarding the repatriation of provident and pension funds for Thai employees, she said.
Negotiating a social security agreement with countries where Thai entrepreneurs invest can help reduce obstacles and promote investment potential, said Ms Arada.
In addition, there needs to be more government officials and/or local staff in line with the economic size and scope of responsibilities for each diplomatic area, ensuring adequate workloads, she said.
Thai government salary rates should be adjusted to match economic conditions, as the current wages have not been increased to reflect the rising cost of living and inflation rates, said Ms Arada.
She said cooperation between different ministries such as Commerce, Agriculture and Cooperatives, and Tourism and Sports should be encouraged. These ministries help to drive the nation's economy through exports, tourism and agricultural product management, said Ms Arada.
While individual ministries may have specific missions and policies, central authorities can coordinate and jointly drive a synergy approach in future operations, she said.
Ms Arada recommended joint activities with the TAT be organised to promote tourism and products, particularly for regions such as Phuket.
