Few SMEs concerned about fast-approaching AEC, survey finds
SMEs are not that concerned about the opening up of the market in a few years under regional trade liberalisation as they are waiting for the government's assistance measures, according to a report from the International Trade Centre of the University of
Those firms dealing with leather, wood products, rubber-wood products and rice are particularly unprepared to cope with the tougher competition to be brought by the Asean Economic Community (AEC) in 2015.
The centre asked 1,000 respondents how small and medium-sized enterprises were adjusting for the AEC.
Att Pisarnvanich, director of centre, said yesterday that 60.7 per cent of the 2.9 million SMEs in the country had done nothing to prepare for regional seamless trade. According to the survey, 42.4 per cent said they were waiting for the government’s assistance measures, 30 per cent had not received any information about trade liberalisation and 18 per cent lacked the capital to develop their businesses.
SMEs want the government to set up a fund to provide financial support and knowledge about the AEC. However, some small businesses said they could not adjust right now in any case.
Only 7.3 per cent of SMEs have already prepared well to compete within the region, mainly in garments and textiles, printing, plastic products, glass, gems and jewellery, automobiles and auto parts, and electrical appliances.
Att said the survey showed that few SMEs had made preparations although the regional free-trade area will be implemented in a little over two years. With so little time left, at least 50 per cent of them should be ready to enter the trade battlefield.
“If they cannot adjust, they will not be able to find new marketing channels, which will lead them to lose market share while products from companies in other Asean countries whose governments support them will flow into Thailand,” Att said.
