Convert battlefield into a marketplace: Thai chamber

 

“Cross border trading has a very bright prospect, but it won’t reach its true potential if the problems at the borders remain,” said Niyom Wairatpanij, vice chairman of the Thai Chamber of Commerce. 

In an exclusive interview, Niyom also calls for Myanmar’s decentralisation – the very process that will accelerate the growth of border trade with Thailand. Border trade could experience a boom if the Myanmar government were to eradicate conflicts with ethnic minorities along the Thai- Myanmar border. 

“They could allow ethnic groups to join hands in building the economy,” he said. “It is a win-win because the ethnic minority groups will also gain benefit from the trade together with the government. Converting the battlefield into a marketplace would be tempting for all parties.”

Moreover, Niyom cited that the Myanmar government should also consider welcoming people in refugee camps back to their home country. 

“They can’t keep losing their people and let the refugee problems remain their obstacles. They need to drive their economy and human resources are a valuable asset,” he said.

The trading volume over Myanmar-Thailand border last year reached US$700 million and is expected to grow rapidly. The first two months of this year saw a growth of 24 per cent on a year-to-year basis.

More active border trade means the people of Myanmar will get more affordably-priced products thanks to lower logistic cost, said Niyom. 

Meanwhile, Thailand can export more varieties of products while Myanmar can enjoy an influx of tourists.

“More importantly, the Myanmar government will earn more from bringing the ‘underground’ trades to the surface. Myanmar tourism will also be flourishing as Thai people love visiting Myanmar Buddhist temples and historical sites. Imagine if Thai tourists can go by road, how popular would Myanmar be?” he said.

 

Positive outlook

 

The Thai Chamber of Commerce is very optimistic about border trade with Myanmar, which has kept thriving in line with Myanmar’s economic liberalisation. Of all the trading points, Niyom cited that Mae Sot-Myawaddy has the highest potential for trading volume and growth. 

Niyom projected that trade would be spiralling after the opening of two-way traffic road from Mae Sot to Yangon in April next year.

“Mae Sot point is the best strategically with only a 430-kilometre direct drive to Myanmar’s economic centre Yangon. Such a direct route will help reduce the transportation tremendously,” he added.

Myanmar has official border trading points with Thailand at its towns of Tachilek, Myawaddy, Kawthaung, Myeike, Nabulel, Hteekee and Mawtuang. Of these, Myawaddy, opposite the Thai Mae Sot, is the largest of five official checkpoints for overland trade between the two countries. The trade via Myawaddy totalled US$290 million in 2013-2014. Of that, only US$50 million were exports to Thailand.

Consumer products are the most popular import to Myanmar. 

Others include home appliances, construction materials, automobile parts and agricultural equipment. 

Niyom said that his agency has proposed more official checkpoints. They will be at Huay Ton Nun, Mae Hong Son/Shan State: Ban Nam Khao, Kanchanaburi/Dawei; Three Pagodas Pass, Kanchanaburi/Taya Thon Zu; and Dan Singkhon, Prachuap Khiri Khan/My Eik.

In particular, he suggested the Ban Pu Nam Ron-Htee Ki Border to be the international checkpoint as it is gateway for Thailand to the Dawei Special Economic Zone project. 

“Both countries need to sit down and discuss this. Thailand should also set up a special economic zone in order to reap the benefits of overland trade,” he said.

Cross-border trade between Myanmar and Thailand has always thrived and illegal trade has decreased as the government continues to forge ceasefire agreements with ethnic rebel groups.