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Published on December 13, 2007

At a seminar yesterday entitled "Thailand's Productivity and Investment Climate from Diagnosis to Action", hosted by the Stock Exchange of Thailand, private-sector companies urged the government to enhance the competitiveness of Thai industry by producing more skilled workers and granting more privileges for investment in research and development.

Napatsorn Kitaphanich, vice president of leading auto-parts producer Somboon Advance Technology, said Thailand had targeted production of 1.27 million automobiles this year. Of those, 600,000 units were to be sold domestically and the rest exported.

However, if the political situation is unstable, consumption in the automotive industry is also unstable, she said. At the same time, the strength of the baht against other currencies affects Thai competitiveness, especially for original-equipment manufacturers (OEMs) in the automotive industry.

Napatsorn said Thai OEMs, once considered to be a prime global source for supplying auto parts to carmakers, would automatically loss their competitiveness if the baht became stronger. A shortage of skilled workers also remains a problem for the auto industry.

"We need workers who can do the job on-site, and they don't need to obtain a bachelor's degree," she said.

Thai Union Frozen Products (TUF) president Thiraphong Chansiri said tuna and shrimp exports had been singled out for 30 years as a "sunset industry". But TUF continues to survive.

He suggested the private sector work to improve itself.

"Enterprises cried out about the rise in the value of the baht, but they cried out because it rose against the currencies of their rivals," he said, adding that enterprises had to be serious about all aspects of doing business, including cost reduction, risk management, procurement and use of information technology.

Chakkaphant Manutsathit, CEO of electronics company Team Precision, said many foreign investors overlooked Thailand because of a lack of English proficiency.

"Thai enterprises should help themselves first, by going international to seek new markets," he said.

Chakkaphant said one survey found 18 per cent of the 500 fastest-growing corporations in Asia located their offices abroad. Therefore, the government should be more open in response to high demand for office space from international firms.

World Bank representatives spoke about surveys of Thailand's productivity and investment climate made between March 2004 and February 2005, then followed up last year and again this year.

The 2004 survey found Thailand's growth had been mainly factor-driven. Regulatory burdens, skilled-labour shortages and poor infrastructure had been the most binding investment constraints.

 Sasithorn Ongdee

 The Nation