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)
Giant Thai-Chinese wholesale hub opens in Bangkok’s Pratunam
The region’s largest wholesale hub features products from China at wholesale prices, and products from Thai manufacturers to export to China.
Thailand remains in pole position for the highest funds raised across Southeast Asia
Taking the top two spots on the region’s leaderboard this year are Thailand’s Central Retail Corporation Public Company Limited and SCG Packaging Public Company Limited with US$1.77 billion and US$ 1.27 billion funds raised respectively
THAILAND, 26 November 2020 — Capital markets across Southeast Asia stayed resilient in 2020 despite a host of uncertainties from the evolving global health crisis to the worsening US-China trade tensions and the impact of the US presidential elections.(more…)
Thailand’s antitrust agency under scrutiny over $11 Billion Tesco Deal Approval
With the Tesco deal approved, CP Group will gain control over a network of about 2,000 hypermarket and grocery stores across Thailand, and the group already operates 7-Eleven convenience stores and the Siam Makro chain.
Thailand’s largest conglomerate, Charoen Pokphand Group (CP) won on Friday the Thai antitrust agency’s approval for acquisition of retail giant Tesco Lotus: the Office of Trade Competition Commission (OTCC) voted 4:3 in favour of the US$10-billion takeover deal.(more…)
COVID-19 brings first consumer confidence drop in 3 months
Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also...
Wish you were here: how the pandemic harmed tourism-dependent economies
Before COVID-19, travel and tourism had become one of the most important sectors in the world economy, accounting for 10...
How Asia Pacific can turn COVID crisis into an opportunity
Bold policies needed to boost economic recovery and improve social stability
Asia’s supply chains to be tested by COVID-19 vaccine delivery
The global logistics company DHL estimates that global vaccine coverage will take around 200,000 pallet shipments and 15 million deliveries...
Covid-19: the Latest on Southeast Asia
As 2021 dawns, the coronavirus pandemic continues to develop in Southeast Asia. Many countries are preparing to receive their first...
Thailand’s slow economic recovery
The speed of economic recovery in Thailand has been slower than neighbouring countries such as Malaysia, Vietnam and China, especially...