Thailand Needs To Shape Up To Play A Role In The Asean-Plus Frameworks

[webfact]

WATCHDOG

Thailand needs to shape up to play a role in the Asean-plus frameworks

By Nophakhun Limsamarnphun

TOP OFFICIALS of the Asean+6 economic cooperation framework - which groups together the 10 Asean countries as well as China, Japan, Korea, India, Australia and New Zealand - are understood to be pondering significant further moves. One of their strategies is to engage the US, the world's largest economy, as the Asean+6 framework moves forwards. Another strategy is to include Russia, one of the world's biggest emerging markets - along with Brazil, India and China - into the framework, as proposed by the Russians themselves.

If both the US and Russia are added, the economic cooperation framework of Asean+8 will undoubtedly become formidable.

In fact, the current Asean+6 framework is already the world's largest in terms of number of consumers. It is also the world's fastest-growing economic region. The 10-country Asean Economic Community (AEC) has 580 million consumers, while China and India have 1.3 billion and 1.1 billion consumers respectively. In addition, the current framework includes Japan, the world's second largest economy, and Korea, an OECD member, plus Australia and New Zealand. In terms of economic growth, China and India are driving the region's expansion, along with other major economies in North and Southeast Asia.

Earlier this year, the Swiss-based World Economic Forum hailed East Asia's fast-expanding role on the global stage as underscored by the region's increasing regional economic cooperation, robust domestic consumption, and coordinated government stimulus measures. The last measure was evidenced in the aftermath of the US-led global recession two years ago, as China and other Asian countries cooperated to help pull the global economy out of recession.

Asean itself, early this year, started to enforce the Asean Free Trade Area (Afta) with China, with the objective of lowering import tariffs to zero, and 2015 as the deadline to fully implement the AEC programme. In this context, Thailand - one of the founding members of Asean and, currently, Asean's second largest economy after Indonesia - should remain an attractive destination for foreign direct investment for years to come, given its sizeable domestic market of 63 million people and its geographical position at the centre of Asean.

In the eyes of foreign investors, the increasing political risk, as seen in the past several years of instability, protests and violence - is probably the leading negative factor for Thailand. It remains necessary to strengthen the rule of law here to ensure that economic development and private investment are not deterred.

However, Thailand is well developed in terms of infrastructure preparedness - as far as basic transport services and logistics are concerned. But further improvement is necessary in the telecom area, especially with regard to the broadband infrastructure.

In terms of supporting industries and the value chain, Thailand is highly competitive in the auto, petrochemical and other heavy industries, as evidenced by its position as a regional production hub for major global firms. However, further improvement in the service sector is necessary, as suggested by the World Bank recently - largely because Thailand is not yet competitive in high-value services.

As a percentage of the country's GDP, services dropped over the past decade, so there should be a fresh effort to boost medical tourism and creative industries such as product design and development.

If the country can make further improvements in these areas and get its politics in shape, Thailand will really be a competitive member of the Asean-plus economic framework.

-- The Nation 2010-06-26

[gotlost]

Violence in Thailand. Who would of think those thoughts

[invex]

Blablablabla bla bla bla and

bla bla bla bla bla bla bla,

Already 7 years ago we were told that many imported goods (such as wine, fruit, motorcycles, cars) would go down considerably in price. The papers were full of it, as Thaksin signed many important agreements with Asian partners.

Last year again and in all papers, on TV and radio; many prices from imported goods from Asian countries (including Australia and New Zealand) will go down a lot because of the Asean+6 trade agreements.

In the mean time, nothing happens. I have been told that if they have to lower the import taxes following those agreements, Thailand will just impose other taxes on those goods so the price remains the same for the customer………………….

And I am so thirsty for a delicious (correct prized) wine.

[rreddin]

WATCHDOG

Thailand needs to shape up to play a role in the Asean-plus frameworks

By Nophakhun Limsamarnphun

TOP OFFICIALS of the Asean+6 economic cooperation framework - which groups together the 10 Asean countries as well as China, Japan, Korea, India, Australia and New Zealand - are understood to be pondering significant further moves. One of their strategies is to engage the US, the world's largest economy, as the Asean+6 framework moves forwards. Another strategy is to include Russia, one of the world's biggest emerging markets - along with Brazil, India and China - into the framework, as proposed by the Russians themselves.

If both the US and Russia are added, the economic cooperation framework of Asean+8 will undoubtedly become formidable.

In fact, the current Asean+6 framework is already the world's largest in terms of number of consumers. It is also the world's fastest-growing economic region. The 10-country Asean Economic Community (AEC) has 580 million consumers, while China and India have 1.3 billion and 1.1 billion consumers respectively. In addition, the current framework includes Japan, the world's second largest economy, and Korea, an OECD member, plus Australia and New Zealand. In terms of economic growth, China and India are driving the region's expansion, along with other major economies in North and Southeast Asia.

Earlier this year, the Swiss-based World Economic Forum hailed East Asia's fast-expanding role on the global stage as underscored by the region's increasing regional economic cooperation, robust domestic consumption, and coordinated government stimulus measures. The last measure was evidenced in the aftermath of the US-led global recession two years ago, as China and other Asian countries cooperated to help pull the global economy out of recession.

Asean itself, early this year, started to enforce the Asean Free Trade Area (Afta) with China, with the objective of lowering import tariffs to zero, and 2015 as the deadline to fully implement the AEC programme. In this context, Thailand - one of the founding members of Asean and, currently, Asean's second largest economy after Indonesia - should remain an attractive destination for foreign direct investment for years to come, given its sizeable domestic market of 63 million people and its geographical position at the centre of Asean.

In the eyes of foreign investors, the increasing political risk, as seen in the past several years of instability, protests and violence - is probably the leading negative factor for Thailand. It remains necessary to strengthen the rule of law here to ensure that economic development and private investment are not deterred.

However, Thailand is well developed in terms of infrastructure preparedness - as far as basic transport services and logistics are concerned. But further improvement is necessary in the telecom area, especially with regard to the broadband infrastructure.

In terms of supporting industries and the value chain, Thailand is highly competitive in the auto, petrochemical and other heavy industries, as evidenced by its position as a regional production hub for major global firms. However, further improvement in the service sector is necessary, as suggested by the World Bank recently - largely because Thailand is not yet competitive in high-value services.

As a percentage of the country's GDP, services dropped over the past decade, so there should be a fresh effort to boost medical tourism and creative industries such as product design and development.

If the country can make further improvements in these areas and get its politics in shape, Thailand will really be a competitive member of the Asean-plus economic framework.

-- The Nation 2010-06-26

"If" is a very big word and there are lots of "ifs" in this article. There is also a massive and incorrect assumption about the purchasing power of the Thai domestic market. Ther may be 63 million people in Thailand, but with a per capita income of less than $4,000 and the uneven wealth distribution, FDI will mainly focus on low cost production for export to wealthier markets than on domestic consumption.

Internet access and the quality of the service provided are both woefully inadequate. It is, however, a chicken and egg situation. Private computer ownership among Thais will not increase until computers are affordable and there is a fast, relaible and cheap Internet service. The ISP's will not invest until the market is bigger, even then they will focus on the areas that are most profitable - the urban areas. That could result in rural parts of country being little better than sub-Saharan Africa for Internet access and private computer ownership.

In this context, the challenge facing Thailand is where to position itself. China has bagged the low cost manufacturing market. Thailand does not yet have the appropriately educated workforce to provide a high value service sector. This shortcoming is compounded by the inadequate telecommunications infrastructure even in central Bangkok. By the time Thailand catches up with where its regional competitors are now, they will have moved far ahead again.

The sad part is that although many fine words will be spoken on the subject, nothing substantive will be done to turn all of those "ifs" into reality.

[asiawatcher]

ASEAN dictating to Thailand? Well if they do that again I am going to contact the Reds and have them bust the next Summit meeting to show how tough Thailand really is!

[SomTumTiger]

Blablablabla bla bla bla and

bla bla bla bla bla bla bla,

Already 7 years ago we were told that many imported goods (such as wine, fruit, motorcycles, cars) would go down considerably in price. The papers were full of it, as Thaksin signed many important agreements with Asian partners.

Last year again and in all papers, on TV and radio; many prices from imported goods from Asian countries (including Australia and New Zealand) will go down a lot because of the Asean+6 trade agreements.

In the mean time, nothing happens. I have been told that if they have to lower the import taxes following those agreements, Thailand will just impose other taxes on those goods so the price remains the same for the customer………………….

And I am so thirsty for a delicious (correct prized) wine.

All those essentials of life....lol Thanks for the whinge!

[craigt3365]

It really is crazy we have such high prices on goods here. Electronics, wine!, etc. Ridiculous. Having to fly to HK to buy electronics is stupid. Reduce the tariffs and make Thailand a place where people come to shop!