Executive vice president Pailin Chuchottaworn said Thailand enjoyed such an advantage because South Korea must import all of the raw materials used in its petrochemical production. However, he added that management and personnel in the Kingdom still lagged far behind South Korea's, in terms of both skill and discipline.

"It will take time to raise the quality of our personnel to the South Koreans' level," he said.

South Korea is considered an Asian leader in the petrochemical industry. It is the world's fifth-largest producer of ethylene, and the country's nine major operators have made South Korea the world's eighth-largest petrochemical producer overall.

One of those producers is Samsung Total Petrochemical in Daesan, located in the country's largest petrochem complex.

There are 15 petrochemical factories in the Daesan Industrial Estate, representing an investment of US$5 billion (Bt187 billion). South Korea uses naphtha as a raw material in the production of several types of petrochemical pellets. Samsung Total has a combined annual production capacity of more than 4 million tonnes. PTT's production capacity pales in comparison.

Pailin said PTT planned to learn how to improve its administration and management from South Korea, so it could upgrade its own petrochemical operations. "We can see how a country with no energy resources of its own developed its energy and petrochemical industries to compete in the world market."

South Korea may have to buy fuel from outside, but it was able to build up its industries - steel, engineering, construction and tankers - by itself, and the money earned from them is kept in the country. "Thailand is willing, but it cannot yet stand on its own, because the quality of our human resources is lower," he said.

Pailin said the Korean petrochemical industry had a 10-15-year head start on Thailand, managing to become four times larger than the Kingdom's. He attributed the success to its disciplined and diligent managers and workers.

For example, Samsung Total's management has proven very effective in maintaining low production costs and maximising energy use, and the company continually monitors its rival companies. Therefore, it is better equipped to withstand any risks than are its rivals, he said.

Pailin said PTT started learning from South Korea two years ago. He said if PTT was determined enough, the company could reach South Korea's level in five years.

But although Thais can learn theory, they often fail to translate it into practice. "Thais tend to be more laid back, a characteristic that has slowed efforts to upgrade our industries," he said, adding that Thailand also lacked an adequate supply of human resources.

Watcharapong Thongrung

The Nation

Seoul