EDITORIAL

Asean integration will require a new mindset

The Nation

Thai business people are still struggling to grasp the change that looms in two years time

BANGKOK: -- Ironically, even though we can hardly miss the acronym "AEC" when browsing through the newspaper each day, some Thai businessmen confessed to a survey recently that they don't have a true understanding of how to prepare for the regional integration which is due to come into existence in 2015.

In spite of the campaign to promote understanding of the AEC - Asean Economic Community - both in the public and private sectors, some Thai companies are not sure if they have a proper grasp of what this will entail and mean for their businesses.

For, while they are receiving pieces of information about the AEC from the media, they miss the big picture on how to prepare themselves to fully benefit from integration of the Asean market. Some of the businesses do not fully understand the extent of the market integration and what types of business sectors would be subject to liberalisation.

In addition, many Thai companies face limits in terms of language. Business people in other Asean countries can speak many languages such as English and Chinese or even Malay. But some Thai businessmen and women cannot efficiently communicate in English or Chinese. This limited language capacity will affect their opportunities to discuss business with others.

The AEC could offer both opportunities and challenges for Thai businesses. First of all, they will enjoy access to markets beyond Thai borders. It will no longer be limited to some 66 million people in Thailand.

Nonetheless, the AEC will also open up the local market to regional competition as corporates in neighbouring countries will want to tap the opportunities in Thailand. The Thai economy is attractive because it is diversified, with a variety of sectors such as manufacturing and services.

Even before the AEC, the Asean market has been increasingly integrated, thanks largely to the Asean Free Trade Area (Afta) formed in the early 1990s to cut tariffs on all manufacturing goods within the 10 Asean countries.

Asean consumers have been familiar with Thai products. Singaporean brands are also well-known in Thailand and other Asean countries. Many products have been crossing the border for years. Thais are familiar with Dao coffee from Laos, for instance.

In short, a positive perception has existed in the region. The AEC will not simply get rid of red tape and barriers to further promote a free flow of goods and services. This is in line with the vision that Asean people share the future. Advent of the AEC is also likely to promote understanding and make people in each nation value the uniqueness and diversity of different countries in the region.

To benefit from the business opportunities, businessmen have to understand not only the market but also the characteristics of our neighbours - know their character and preferences. Businessmen wishing to "go regional" need to understand other people within the region and their background.

Most Thais say they have learnt about Asean community via the media. But there should also be other channels of information. In fact, the education of Asean should start from institutions, so the new generation gain an insightful knowledge about their region.

The mentality that foreigners will be a threat should also be ditched. Local businessmen will have to look at others with an open mind to work and cooperate with people from different countries and help their corporations to cater to a regional market.

Gone are days when the local businesses would be protected. The regional market is inevitable and the AEC is simply part of the trend. It is a catalyst that will help businessmen realise that the best way to stay competitive is to be unique and reach a wider market by excellence and having an open mind.

-- The Nation 2013-01-21

Its coming, and the howls of how unfair it all is are only going to get bigger and bigger. Reciprocity is a very hard concept in Thailand when so many industries are protected and off limits to so called foreigners. The AEC will start to break down those barriers.

Maybe the farang businesses won't be the big nasty bogeymen so much anymore, and the AEC is the new enemy?

What new mindset?

We heard during the last weeks

- diseases will spread by opening the borders

- waste will increase (is that even possible???) by opening the borders

- soon Thai-students will learn English to be ready to meet competition

Looks fine to me!

"Thai companies face limits in terms of language. Business people in other Asean countries can speak many languages such as English and Chinese or even Malay."

Duh! Thai students take English for more than 12 or even 16 years and cannot speak English. English education is not taken seriously in Thailand. Thai teachers refuse to let go of English teaching and teach students with occasional English and mispronunciations.

"Even before the AEC, the Asean market has been increasingly integrated, thanks largely to the Asean Free Trade Area (Afta) formed in the early 1990s to cut tariffs on all manufacturing goods within the 10 Asean countries."

This statement is a joke. Imports are heavily taxed to keep them from being competitive.

"Many products have been crossing the border for years."

Heavily taxed and in limited quantities.

"The AEC will not simply get rid of red tape and barriers to further promote a free flow of goods and services."

Very true. Thai businesses will continue to protect themselves if they feel like their market is shrinking.

"...businessmen have to understand not only the market but also the characteristics of our neighbours - know their character and preferences."

Again, not gonna happen. Thais don't learn easily and their "take what you can grab today and screw tomorrow" philosophy will prevail.

"The mentality that foreigners will be a threat should also be ditched. Local businessmen will have to look at others with an open mind to work and cooperate with people from different countries and help their corporations to cater to a regional market."

Thais will always perceive foreigners as a threat. It's in their nature. Westerners more than Asians.

"Gone are days when the local businesses would be protected."

Sounds good, but totally untrue. Thai businesses don't know how to complete on a level playing field. Never intended to. Why do we always tell ourselves as foreigners and Thais are quick to remind us "This is Thailand", meaning Thais do what they what, when they want. The rules don't apply to them. They apply to you.

Edited January 21, 201313 yr by Markaew

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Posted Today, 07:38 Oct 25, 2015

AEC "Brainstorming sessions" to start Nov 1, 2015

The Nation

With the AEC to kick off in just over two months, the Thai business community, is still unable to come to grips with reality.

Edited January 21, 201313 yr by dcutman

I expect the Thais are expecting the Asean community to take on a new mindset. It's called Thainess.

I really don't think Thailand is alone in this problem many of the other countries I am sure have companies that don't know what it is all about.

Will this new "mindset" allow sale of sex toys in Thailand? I mean the plastic ones, not the flesh trade that we already see everywhere.

These things are legal in Singapore, so...

Perhaps the legalisation of sex toys would keep many sex starved girls from selling themselves to old perverts from the west?

"Asean integration will require a new mindset"

Foreigners bring diseases

Foreigners require us to rewrite the constitution

US had based its stance on untrue information (child labour in fishery industry)

...

...

I really don't think Thailand is alone in this problem many of the other countries I am sure have companies that don't know what it is all about.

Some do, others don't.

Malay/Indonesian - spoken by close to 300 million people in ASEAN

Chinese spoken by 20-30 million, not counting Vietnam

English spoken by hundreds of millions

Relatively free economies already in place

. . . and the list goes on. Thailand will have the same problems as Laos and Cambodia . . . only more so because the consumer market is a healthy one and will be targeted by all and sundry

This article is almost (not totally) a rewrite from about 4 weeks ago.

Edited January 21, 201313 yr by Locationthailand

Thailand will have the same problems as Laos and Cambodia . . .

Cambodians are FAR more proficient in foreign languages than Thais. English is widely spoken among the young and in the major commercial areas, as are, to a lesser extent Mandarin, French, Korean and Thai. Additionally, due to the liberal foreign investment, business ownership and immigration laws, many SMEs in Cambodia are already owned and operated by other ASEAN nationals (and Westerners too) and there are few restrictions on the types of work that foreigners are permitted to do. There is no extensive list of 'reserved occupations' here. In terms of foreign business ownership and free movement of labour, Cambodia is already much further along the path to integration than Thailand.

Edited January 21, 201313 yr by Rumpole

As one poster said Thailand is right for picking. No wonder the amaat is pushing out the Pitak and PAD facists. When ASEAN comes its game over for them.

Most international companies that will be starting up offices here in Thailand, will have to be accredited by ASEAN, to fall within the realms of the treaties put in place. The one thing that has always been apart of ASEAN is, the official language , the document I have linked here in this post clearly states, "The de facto adoption of English as the sole working language of ASEAN is about to be formalized. At the ASEAN Summit in November 2007, the ASEAN Charter was introduced. Article 34 ‘Working Language of the ASEAN’ reads: ‘The working language of ASEAN shall be English’."

There was also another article about businesses being granted some form of accreditation as, an ASEAN business, at this point I am not able to find it. This was aimed at foreign companies opening offices in any of the ASEAN countries. Thailand mentions something about 7 professions in this article, but again they did the Thai twist.

When I was working at a Thai government school, the director did a few trips to neighbouring countries: Cambodia, Laos and I also think Burma or Vietnam. On his return, he was angry due to the fact Thai's, did not speak English as well as the native speakers of these countries he had just visited.

All this is very unfortunate for Thai's and Thailand, especially as they[Thailand] are one of the founding five countries and were also the host nation way back in August 1967. So they have had plenty of notice.

Most international companies that will be starting up offices here in Thailand, will have to be accredited by ASEAN, to fall within the realms of the treaties put in place. The one thing that has always been apart of ASEAN is, the official language , the document I have linked here in this post clearly states, "The de facto adoption of English as the sole working language of ASEAN is about to be formalized. At the ASEAN Summit in November 2007, the ASEAN Charter was introduced. Article 34 ‘Working Language of the ASEAN’ reads: ‘The working language of ASEAN shall be English’."

There was also another article about businesses being granted some form of accreditation as, an ASEAN business, at this point I am not able to find it. This was aimed at foreign companies opening offices in any of the ASEAN countries. Thailand mentions something about 7 professions in this article, but again they did the Thai twist.

When I was working at a Thai government school, the director did a few trips to neighbouring countries: Cambodia, Laos and I also think Burma or Vietnam. On his return, he was angry due to the fact Thai's, did not speak English as well as the native speakers of these countries he had just visited.

All this is very unfortunate for Thai's and Thailand, especially as they[Thailand] are one of the founding five countries and were also the host nation way back in August 1967. So they have had plenty of notice.

What does accredited by Asean mean?

'Twould be interesting to find a Thai with a mind set on anything truth be known let alone A.S.E.A.N..

'Twould be interesting to find a Thai with a mind set on anything truth be known let alone A.S.E.A.N..

"Twould be interesting to find a retired Brit with a mind set on anything truth be known let alone.......( fill in the blank.........)"

How does that sound.

Gotta love the Thai bashing here.

Thailand will have to change as will other ASEAN nations. That's all part of being in an economic club you daren't not be in.

In the UK we still haven't quite got the hang of the EU even after all these years.

'Twould be interesting to find a Thai with a mind set on anything truth be known let alone A.S.E.A.N..

"Twould be interesting to find a retired Brit with a mind set on anything truth be known let alone.......( fill in the blank.........)"

How does that sound.

Gotta love the Thai bashing here.

Just to be sure ,my dear Phil. This particular forum is about Thai news and likely to get some interesting opinions. Both pro and contra. The mindset of Brits or (gasp) English is of no relevance here.

Now back to the topic, with k. Abhisit an Englishman, who cares