Connect with us

Corporate

Asean Economic Community could threaten Thai SME

The competitiveness of Thailand’s small and medium-sized entreprise (SME) business sector could be threatened once the Asean Economic Community (AEC) takes effect in 2015, according to the director of Thai Chamber of Commerce University Center for International Trade Studies.

Published

on

chatuchak 07

The competitiveness of Thailand’s small and medium-sized entreprise (SME) business sector could be threatened once the Asean Economic Community (AEC) takes effect in 2015, according to the director of Thai Chamber of Commerce University Center for International Trade Studies.

Asst Prof Dr Aat Pisanwanich said increased competition in the marketplace is expected in the next three years, so strategies are needed now for Thai SME businesses to be able to compete more effectively and receive tax benefits by improved cost management, expanding their production bases to other countries, developing better quality products, setting up goods distribution centres in Indonesia and Myanmar, and setting up joint ventures with foreign companies.

Textiles and garment industries tend to shift their production bases from Thailand to Cambodia and Myanmar

For the past two years as the AEC has taken effect in six out of ten ASEAN countries, Thai exports to the region have dropped to their lowest level at 18.7 per cent. In 2010, Thai exports to the AEC group was some US$10.2 billion, and dropped to US$7.5 billion the following year due to higher production cost in the country from factors ranging from higher material costs to concerns about the government’s wage rise policy. Dr Aat said Brunei Darussalam’s exports to ASEAN increased the most at 46.9 per cent, followed by Cambodian exports at 27.6 per cent.

He predicted that textiles and garment industries tend to shift their production bases from Thailand to Cambodia and Myanmar, while seafood processors are likely to go to Myanmar and Indonesia owing to their abundant resources and lower labour cost. However, the exports of other industries such as electrical appliances, fruit and vegetables, leather, beverages, and tobacco have been going well, but Thai exporters should not be careless, Dr Aat said, for Indonesia has already been taking Thailand’s market share of these industries. According to the trade centre director, Thai exports are unlikely to expand more than 15 per cent as the world economy has not yet fully recovered. He advised the government to not make any moves to weaken the Thai baht in order to boost exports, for it will accelerate inflationary pressures. (MCOT online news)

Academic warns ASEAN community could weaken Thai SMEs

Click to comment

Leave a Reply

Corporate

True and Dtac Merger Talks Highlight Necessity of Scale at Thai Telcos

The merger between True Corporation, a subsidiary of conglomerate Charoen Pokphand Group, and Total Access Communication (Dtac), a subsidiary of Norway’s Telenor would shrink the number of big telcos players in Thailand to only two.

Published

on

iStock-1135535759.jpg

The discussion between Norway telecom group, Telenor ASA, and Thailand’s largest conglomerate, Chareon Pokphand Group (CP Group), to explore a merger of their telecom businesses in Thailand underscores the significance of scale to drive cost efficiencies amid the Thai telecom sector’s slow growth and high investment, says Fitch Ratings.

(more…)
Continue Reading

Corporate

Thai Government Launches “Factory Sandbox” Scheme to Protect 3 Million Jobs

The plan will focus on plants which employ at least 500 people and will build confidence among both Thai and foreign investors at a time when supply chains in rival countries are shutting down.

Published

on

EAS Infrastructure Development

BANGKOK (NNT) – Thailand’s government has launched a pilot “Factory Sandbox” program to test, vaccinate and isolate factory workers, with the aim of limiting COVID-related disruptions to Thailand’s important export-driven manufacturing sector.

(more…)
Continue Reading

Recent

Most Read

Join 14,216 other subscribers