Successful Thai entrepreneurs and government officials yesterday urged Thai small and medium-sized enterprises to strengthen their competitiveness by exploring business opportunities within Asean.
At a seminar entitled "The Asean Economic Community (AEC): A Single Market - Trade and Investment Opportunities for Thai Businesses" organised by Krungthep Turakij newspaper, panellists shared the view that Thai businesses could not survive in the free market if they merely stayed home instead of venturing into other Asean countries.
They urged SMEs to form partnerships that would create distribution channels within Asean and thus boost exports. Companies should also invest in Asean members by taking advantage of tariff elimination under the recently enacted Asean Free-Trade Agreement to set up a regional manufacturing hub.
Siam Cement Group president and CEO Kan Trakulhoon said no Thai business could rely solely on the domestic market.
You don't have to be a large conglomerate to expand successfully into the rest of Asean, he said. "Only a few developing countries in Asean will become regional production bases in the next five years, and Thai SMEs should seek trade and investment opportunities in those countries. They'll enjoy larger markets and more sources of labour and raw materials, all of which will support business growth."
Asean will play a major role in Thai trade and investment. In 2008, fellow Asean members received 18 per cent of the value of Thai foreign direct investment. That proportion will increase considerably once regional integration into the AEC is completed in 2015.
Thai entities are now the third-largest foreign investors within Asean, after those in Singapore and Malaysia.
Saha Group CEO Boonchai Chokwatana said Thai SMEs must carefully study Asean market demand, which often differed from country to country. Market surveys and preselling should be conducted before deciding whether to invest in Asean countries.
Black Canyon (Thailand) CEO Pravit Chitnarapong said local firms should consider Asean a second domestic market.
"Thai SMEs should learn the languages, cultures and regulations necessary to penetrate Asean markets," he said.
Commerce Minister Porntiva Nakasai suggested Thai SMEs create alliances with local businesses and concentrate more on research and development.
