Producers of plastics advised to target china
Asean plastic manufacturers should work together to penetrate the Chinese market, as integration under the Asean Economic Community will strengthen the industry's capability to take on markets outside the region.
"Asean is too small to fight each other. The market of 600 million people is not challenging compared with the world market," Veerasak Kositpaisal, chairman of the Plastic Industry Club under the Federation of Thai Industries, said recently.
The club had studied China's 12th economic and social development plan (2011-2015) to see if there was room for Thailand as well as Asean to benefit from the huge market there. Although China has announced that it would grow its economy via self-sufficiency, there is an opportunity for Asean plastic manufacturers to enter that market, he said.
China as well as other partner countries under the Asean+3 and Asean+6 free trade agreements had to replace materials like metals or even conventional plastics with value-added plastics. Thailand is one of the Asean countries that know how to produce value-added plastic pellets and products, so, if it and other Asean members can join forces, it is possible to enhance the ability to tap the Chinese market together.
Plastic manufacturers in Asean last week attended the Asean Federation of Plastic Industries (AFPI) Council Meeting held in Bangkok to exchange the latest market information in each country and talk about cooperation among them.
Veerasak said the members of AFPI at the meeting agreed in principle to collaborate instead of competing with each other in order to manufacture plastic products in the most appropriate locations and export to markets outside Asean. That could lead to more co-investment among plastic producers in this region before the AEC takes off.
Donald Lim, AFPI chairman and secretary-general, said the turnover of the Asean plastic industry is estimated to grow by 5 per cent per year - higher than the current rate of 3-4 per cent - after the producers in the region can gain from synergy as expected.
Plastic demand among Asean+6 will definitely increase, as industries such as automobiles and parts need plastics to replace existing materials, he said.
AFPI does not have the exact figure of combined turnover among Asean plastic manufacturers, but Lim said the market in Singapore is about US$7 billion-$8 billion per year, while Veerasak said that of Thailand is $10 billion (Bt300 billion).
