THURSDAY, March 28, 2024
nationthailand

Thai SMEs urged to forge partnerships with Hong Kong

Thai SMEs urged to forge partnerships with Hong Kong

THAI SMEs should form partnerships and take advantage of Hong Kong’s free and efficient economy in a strategic move to go global, according to Vincent Lo, chairman of the Hong Kong Trade Development Council.

During the recent opening of the “In Style • Hong Kong” symposium, Lo said the Asean market would reach about 8 trillion dollars in 10 years.
“Alibaba, for instance, a young company with 15 years of history, has been immensely successful. China has a good environment that fosters growth and [Alibaba founder] Jack Ma has a good vision.
“Thailand needs a platform that is open up to opportunities and growth such as reform and external expertise and knowledge. Thailand has a big population and is still in the developing/growing stage that is not controlled by local companies.
“There is more room for Thailand to develop and grow and Hong Kong is an expert in infrastructure and. That can help drive Thailand further,” he said.
Thai SMEs (small-to-medium enterprises) should look ahead and see the world is changing fast. They always need to be one step ahead. That takes a lot of determination, hard work and guts.
Local SMEs need to improve their infrastructure and once that has happened, maybe they can bring in manufacturing from Hong Kong.
Due to a lack of resources, it’s quite hard for Thai SMEs to go abroad and also hard for them to survive since there is no cash flow. To be successful in overseas markets, they need a long-term strategy.
With the help of e-commerce, SMEs and anyone can reach and be in the global market, but also there’s a lot of competition in the online marketplace.
If Hong Kong firms invest in Thailand without doing joint ventures, it would take them a long time because they need to study the market.
Thai business can help Hong Kong firms with this, while Hong Kong can help fulfil what Thailand is lacking.
“Thai SMEs need to be able to be globalised. They should evaluate/assess their own company and find strengths to be able to compete in the global marketplace.
“They need the determination of the government and the policy of belt and road.
“If Thailand can become one of the top in the league, it will be a very important move,” he said.
The key advantage of Hong Kong in terms of geography, logistics and supply chains, as a distribution hub for Thai SMEs, is its willingness to open to new ideas. “Hong Kong is still small, and there is room for everyone. However, Thai SMEs need to make a decision,” he said.
Hong Kong is an open market. It has freedom to operate and a lot of services to offer with a free and efficient economy.
“The joint venture between Hong Kong and Thailand will help decrease the learning curve and speed up time to market.
“With Hong Kong’s rule of law, it makes people comfortable to do business in Hong Kong – quite efficient, low tax and good infrastructure.
“Hong Kong is an expert in many areas such as logistics and supply chains. The professional sector in Hong Kong is the best in the world.
“Hong Kong is much more versatile and international, can help Thai businesses to go abroad and set up a joint venture between Hong Kong and Thai companies and go international,” he added.

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