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Published on April 17, 2008

Officials have drawn up a road map to focus on promoting trade and services to ensure Thailand becomes one of China's strongest commercial partners, in the light of forecasts that the country will become the world's biggest economy in the next 15 years.

The plan is part of the Com-

merce Ministry's scheme to streng-then small and medium-sized

enterprises (SMEs) overseas, as

well as increase export growth.

"China has many potential possibilities for Thai traders and enterprises, particularly in the export of high-quality goods and in service sectors, thanks to its robust economic growth," said Pisanu Rienmahasarn, deputy permanent secretary at the ministry.

He said China would play a more significant role in the world's economy during the US recession, and Thailand should take the opportunity to increase trade and investment there.

Under the ministry's plan to strengthen trade and investment, it will increase the efficiency of SMEs through its training projects and encourage more traders to start the export of high-quality goods to the Chinese market.

China's gross domestic product is expected to grow 8-9 per cent a year. The population is about 1.3 billion people, of whom 10-15 per cent are in the high-income bracket.

China's economic growth peaked at 11.4 per cent last year, against growth ranging at only 2-7 per cent in the United States, the European Union and Japan.

Pisanu said that although China has high production capacities in many industries, exports from Thailand were in high demand by high-purchasing consumers.

"Thai products are well-recognised by consumers for their high quality. Traders should look carefully at their capability to serve this market. Goods with potential are high-end brand-name goods, Thai foods, tropical fruits, jewellery, ornaments and furniture.

Potential services are restaurants, spas and automobile garages."

Many Thai restaurants have opened across China. However, very few of them are owned by Thais. Pisanu said Chinese consumers are very fond of Thai food, which is regarded as exclusive.

Thai restaurant enterprises should explore this market more and capture the opportunity because of the very high demand among high-end consumers, he suggested.

In addition, Pisanu said long-distance expressways covering 50,000 kilometres, and which reach all provinces, would facilitate trade growth in China.

The Kunming-Bangkok Highway - known as Route No 3 East (R3E) - will also spur economic growth and market access, particularly for services. The 1,200-kilometre, four-lane road through Laos will be the most convenient route connecting Thailand to China's southern regions. The road, which is expected to be completed soon, will allow Thai enterprises to easily connect to China, he said.

Business Development Depart-ment deputy director-general Suthi-sak Llaohachewin said robust economic growth in China would make it the world's largest exporter within 10 years. It will also become the Kingdom's largest trading partner, replacing the United States. The department wants Thai SMEs to capture their share of that burgeoning economy.

Suthisak added that the department would conduct four trade missions to China this year to encourage exports to that country.

The missions are to Huhan, Beijing-Dalian-Chingdao, Shanghai-Kunming and Chongching.

Achara Pongvutitham, Petchanet Pratruangkrai

The Nation