Thai firms urged on Indochina foothold
Thai companies wanting to expand outside the Kingdom under the approaching Asean Economic Community (AEC) should look to Indochina first because of its wealth of resources, a seminar heard.
At the event held by the Thammasat Economics Association on the topic "Opportunities for Thai Business in Asean and Asia", Anon Sirisaengtaksin, president and chief executive officer of PTT Global Chemical, encouraged entrepreneurs to explore Indochina.
Although economic growth there might not be in the same league as Malaysia and Indonesia, resources are a key factor for strengthening an operational base.
Thai companies that have businesses in Indochina ahead of the AEC’s implementation in 2015 will have an advantage over other countries expanding there, he said.
PTT explored Myanmar for natural gas more than 20 years ago, and 25-30 per cent of its total gas production now comes from that country.
Anon recommended that Thai companies consider where to invest, how to invest and how to be successful before committing themselves to a particular country.
Kobsak Pootrakool, executive vice president of Bangkok Bank, said medium-sized companies should take their time seeking opportunities in Asean, especially in the so-called CLMV countries – Cambodia, Laos, Myanmar and Vietnam.
The formation of the AEC will kick off a new cycle of investment, and Thai businesses should watch closely for opportunities to secure a foothold before others come in, he said.
"If we wait for the opportunities after 2015, we will lose share to many countries, and it is not easy to increase competitiveness to beat rivals."
Apart from connections, language and labour, which are three factors crucial for offshore investment, he said Thai companies that want to go regional should have advisers to give them business direction.
Thai companies have little information on going regional because the government has no third party to help Thai businesses ahead of the AEC.
The Japan External Trade Organisation (Jetro) has set up an office in Myanmar to provide consultation to potential Japanese investors in that country, suggesting local partners and getting them up to speed on regulations.
Manop Sangiambut, executive vice president of Siam Commercial Bank, said that apart from Asean, China would continue to be interesting for Thai companies. The recent leadership transition has not yet resulted in any major policy changes.
The opportunities for Thai companies in China are in the field of |high-technology products because that country wants to form new strategic industries, moving from low-|cost to high-value, high-tech goods, Manop said.
