Despite expansion, Sino-Thai trade expected to be way off target
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With the global economy treading water for the past few years, Sino-Thai trade will miss the US$100 billion (Bt3.3 billion) target for next year, so the Thai government will redouble efforts to reach that milestone in five years.
Last year saw two-way trade running at about $70 billion.
Commerce Minister Chatchai Sarikulya said last week that Thailand and China will need to extend the trade-goal figure to 2020 due to the changing global circumstances. However, this does not mean that their trade has tapered off, only that it has not significantly expanded as planned, because of the worldwide economic slowdown.
The new goal should be achievable in five years, as the ministry and the private sector will tighten cooperation and the government will continue to come up with new strategies and plans to promote more commerce between two nations, he said.
Initially, to celebrate 40 years of diplomatic relations, in 2015, the two governments will jointly roll out many activities promoting trade and collaboration.
The ministry is considering launching hundreds of trade-spurring activities in the Chinese market.
To promote investment, the ministry will work with leading companies that have already succeeded in China to bring small and medium-sized enterprises to start up or expand business here.
China is one of Thailand’s major trading partners with a vibrant economy. Despite some growth hiccups in some large cities, plenty of opportunities still abound for Thais to penetrate other emerging cities on the mainland, he said.
Phaijit Viboontanasarn, commercial minister at the Thai Embassy here, said that although the Chinese economy has not grown as strongly as in the past 10 years, it still expanded more than 7 per cent a year.
The retail industry is expected to accelerate 11-13 per cent a year, slower than the 20-per-cent rate of the past 10 years, but still faster than in other countries.
Although the Chinese might reduce some spending, the upper-income and rising middle-income groups have snowballing purchasing power.
About 10 per cent of Chinese are high-end consumers, and 40 per cent are middle-class earners, which are two prospective markets for Thai exports.
Thai companies should consider penetrating these groups of consumers. With the social structure trending towards urbanisation, income per capita in towns will be double that of the countryside.
Thai firms will have a chance to promote their products and service to these new high-potential groups as they will have increasing demand for quality goods and services.
China projects about 65 per cent of its population living in urban areas by 2025, up from 50 per cent at present.
Thai traders should exploit the Internet for e-commerce as an alternative channel to promote and sell their products, as today Chinese like shopping online.
Thai traders should also do their own marketing in this country, rather than pass through local distributors, so that they can learn about the consumer behaviour of Chinese and respond to their demands immediately, he added.
