Tanit Sorat, a vice-chairman of the Federation of Thai Industries, said free trade in Asean and logistics among countries in the Greater Mekong Subregion (GMS) will pose challenges for Thai firms.

Trade will be upgraded from border-to-border to city-to-city, and local activity will be scaled down and replaced with international activity.

Rising production costs have already forced relocations to cheaper countries, but some Thai investors are still reluctant to go abroad. (See table.)

Many firms will see their production base in Thailand endangered by competitive global trade, so expansion is a must to ease the impact of the rising daily minimum wage and external risks.

Mr Tanit said Thai private firms in neighbouring countries can also enjoy tariff privileges under the Generalised System of Preferences.

He suggested six sectors consider relocation: industries that use local content material; the textile industry, which is labour-intensive; spare parts; electrical and electronic equipment, which benefits from the value chain; household furniture made from natural materials; and the agricultural processing industry.

But the government must give priority to linking the GMS countries.

Mr Tanit said local authorities may not have the capability to handle more trade volume. Thus, skill development is needed among officials as well.

He suggested the government fix missing logistics links, standardise regulations for goods and transport, and tackle illegal immigrant and environmental problems.

In related news, the cabinet yesterday approved the establishment of a one-stop service centre at the Ban Phak Kat checkpoint in Chanthaburi province to accommodate increased cross-border trade and visitor traffic ahead of the Asean Economic Community in 2015.

via FTI tells firms to spread wings | Bangkok Post: business.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

ASEAN, Türkiye to strengthen partnership

Both sides further discussed a number of cooperative projects, which are currently in the pipeline for implementation, including capacity building programmes on diplomacy and climate change adaptation in agriculture sector

What ASEAN takes to Washington

Biden has made a point of stressing ASEAN centrality, and for the attending ASEAN leaders this is a chance to set out regional priorities to a superpower whose influence, if receding, is still substantial.

ASEAN, IFRC sign MOU to strengthen community resilience in Southeast Asia

The MOU provides the scope and main areas of cooperation between the IFRC and ASEAN on matters of mutual interest in the strengthening of community resilience at regional, national and local levels in the ASEAN region