Published on June 24, 2005

Government officials and private sector representatives suggest that Thai businesses expand their markets into Latin America, and they chose Chile as a starting point during a trade seminar held yesterday.

Tassnee Suthipakt, assistant director-general of the Export Promotion Department, said the Latin American market has a lot of potential, particularly Chile as the government there promotes free trade.

She said Chile could serve as a gateway for Thai businesses into Latin America, as the country has a good relationship with Thailand and also has established a free trade zone in Iguigue city. Iguigue serves as a distribution centre for Chile and goods arriving there are not subject to tariffs.

Thailand could use Iguigue city as a gateway into receiving lower-tariff access into the region as Chile, Brazil, Argentina, Uruguay, Paraguay and Bolivia have entered into a common market with Mercosur, a regional trading commitment within the Latin American region.

Panellists at yesterday’s seminar “Market Survey of Latin America (Brazil, Chile, Argentina and Uruguay)” – organised by the Export Promotion Department – also said the Kingdom should use intertraders to target Chile as a way of entering the region and boosting export growth.

Latin America represents a major potential market as it has a population of 350 million.

More than 184 million of those live in Brazil.

Although the market is wide open for Thai businesses, there are still many obstacles to doing business in Latin America, participants heard.

“Most Latin American people know Thai products and Thai food, however they are rarely able to find them in the region because of the logistical problems caused by the long distances between the countries and language problems,” said Ratcharuek Singprom, of the Thai Intertrader Association.

In addition to using intertraders in the region, Ratcharuek also suggested that Thai businesses form joint ventures with locals in the region in order to become established in the market.

Locals would have no language difficulties and would also have a better idea of what marketing strategies would be most effective. Chile is a good entry point for Thai businesses as there are numerous multilingual businesspeople operating there who can help facilitate business.

In terms of what opportunities exist in Latin America, Somchai Rattanachueskul, the secretary-general of the Franchise and Thai SME Association (TSA), said Thai cuisine and the Thai spa industry are well known by many locals and would stand a good chance of thriving in the region.

“However, most people in the region are middle class. Thai restaurants opening there should open in food courts first,” the secretary-general said.

Aside from the service sector, the markets for One Tambon, One Product (Otop) goods and automobile accessories are also wide open in Latin America.

Patcharee Hokjaroen, the assistant manager of the Thai Gifts Premium and Decorative Association, said Latin people like Thai furniture and also have tastes that change every season.

This bodes well for OTOP products, Patcharee said, as most of them are handmade and feature different designs.

The treasurer of the Board of Trade of Thailand, Pairat Burapachaisri, said the limited automotive parts industry in Latin America makes the region an attractive market for automobile and vehicle parts.

“China has been faced with anti-dumping problems related to auto parts exports to Argentina, thus Thai after-market equipment makers should take this chance to boost our export potential,”he said.

Petchanet Pratruangkrai

The Nation

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