Issue 53
With its close proximity to ASEAN, India can become a potential gateway for Thai companies to penetrate South Asia’s markets.
“Indian consumers like Thai people and love Thai products because they trust the quality,” Department of Foreign Trade (DFT) Deputy Director General, Adul Chotinisakorn tells the audience at the Insight into India seminar hosted by the DFT on May 12 in Bangkok. “Thai products for infants and children and tableware are well-recognised in India for their safety, modern designs and first-grade quality.”
India has the second largest population in the world, of which an estimated 350-400 million people can be classified as middle class consumers. Data from the Ministry of Commerce shows that India is the 15th largest trading partner with Thailand. Bilateral trade amounted to US$7.9 billion in 2015.
The two countries have a free trade agreement (FTA), and the India-ASEAN FTA became effective in 2010. This eliminated tariffs on many products such as electronics, chemicals, machinery and textiles, or approximately 80% of total goods traded between India and ASEAN countries.
Chotinisakorn encourages Thai exporters to tap the super rich Indians, who prefer jewelry, home appliances and home decorations.
“To penetrate India’s market, building brand awareness is vital and it is better to enter the market by selling your own brand. Now, Thai brands are among international brands Indian consumers trust and are eager to buy,” he says.
Major Thai investors in India include the CP Group, Delta Electronics, Ital-Thai, Pruksa Real Estate and Srithai Superware, while the major Indian companies in Thailand are Tata Group and Indorama.
Piti Srisangnam, a professor from Chulalongkorn University, says that India represents a huge market with different strata of consumers from the wealthy to the middle class and lower income.
“If you want to approach Indians customers, you have to adapt your products to meet local tastes,” he says. “You must see India as 29 different states, which have their own local rules and regulations. After that, choose the potential state you want to explore and market your products.”
Professor Srisangnam believes that the policies of the Indian government, including Act East and Make in India will make the country one of the major global production hubs in the future, and that Thailand can cooperate with India in several industries, such as the automotive.
“When the India-Myanmar-Thailand Trilateral Highway is completed later this year, it will help cut logistics cost and the time taken transporting products between Thailand and northeastern India,” he says. The 1,400km highway will stretch from the city of Moreh in eastern India through Myanmar to Mae Sot in Thailand’s Tak province.
Words by Somhatai Mosika
Issue 52
Established in 1976, the Joint Foreign Chambers of Commerce in Thailand (JFCCT) is where 33 chambers of commerce and business associations join forces to increase the ease of doing business in Thailand.
“Our mission is to promote trade and investment in Thailand,” says Stanley Kang, chairman of the JFCCT. “We are also working closely with the Thai private sector to assist Thai businesses expand to foreign countries.”
According to Kang, the JFCCT works with the Royal Thai government and various government agencies from the Board of Trade, Board of Investment to the Federation of Thai Industries to offer advice and offer recommendations to foreign governments for the benefit of the Thai economy.
“If the Thai economy benefits and grows, so too will all those who are part of it,” adds Kang.
With over 90,000 members, the JFCCT hosts meetings for various committees, such as Education & Skills, Employment, ICT, International Trade, SMEs and Tourism to develop initiatives to promote trade. The various committees work with various chambers of commerce and embassies to discuss free trade agreements and other trade negotiations, to develop workforce skills in technology, software, hardware and FinTech (financial technology), to advise on policies for inbound and outbound tourism, and to pursue vocational training initiatives.
“One of our latest missions for the SME Committee was to connect between the startup network in Taiwan and those in Thailand,” said Kang. “In Thailand, over 90% of businesses are SMEs, and our committees work to make sure that the competitiveness of SMEs in Thailand is sustainable. We hope to see Thailand become a more open society and believe that we will be able to attract more talent and business opportunities.”
With the opening of the ASEAN Economic Community (AEC), Kang sees a chance for the ten countries to become stronger together by gaining more negotiating power on international platforms. Additionally, the region has the potential to become an important magnet for foreign investment.
Kang adds that in the near future there will be greater competition within the AEC.
“This is a good opportunity for Thailand to make more friends, help neighbouring countries and gain more negotiation power as part of the AEC,” he says. “Thailand also has soft power, where influence and culture are both important.”
He believes that many Thai sectors have the opportunity for sustained growth. “The strength of Thailand is that there is no superstar industry; they are very well-balanced,” he says. “Thailand is very beautiful and you can invest in anything.”
Over the forthcoming years the JFCCT will continue to give its advice to the Thai government.
“We’re committed to being a part of Thailand and will continue to keep an open dialogue with government agencies, working together to make a better future,” says Kang.
Words by Pimsirinuch Borsub
Issue 51
ASEAN has become an attractive destination for foreign investors from every corner of the globe in recent years, a trend the ASEAN Economic Community (AEC) is set to continue.
“Thailand is the hub for mainland ASEAN,” Kelly W. Hsieh, representative of the Taipei Economic and Cultural Office in Thailand tells the audiences at the Taiwan-Thailand Investment Cooperation Forum 2016 held on April 26 at the Dusit Thani Hotel, Bangkok. “It has several advantages including good infrastructure, high level of human resources and intensive investment from the government.”
Taiwan and Thailand have cooperated for many years both in public and private sectors. In 2016, the Taiwanese government will strengthen the cooperation between Taiwan and all countries in ASEAN.
According to Thailand’s Ministry of Commerce, Taiwan was Thailand’s 13th largest trade partner in 2015 with bilateral trade totalling US$11 billion, of which imports represented US$7.5 billion and exports US$3.5 billion.
“For Thailand, we will have cooperation in many industries such as artificial intelligence (AI), automotives, transportation and energy efficiency,” Department of Investment Services director-general, Lien Yu Ping adds.
According to the Thailand Board of Investment (BOI), Taiwan’s 274 investment applications amounted to US$1.39 billion between 2010 and 2015. The top three sectors were electrics and electronics, metals and machinery, and agricultural products.
Johnny Tam, director of Sales and Marketing Business Development for Delta Electronics (Thailand), explains why the world-class power management solutions provider has chosen Thailand as its major production base in this region since 1988.
“The Thai government has supported foreign businesses in the country by providing a wide range of incentives. Businesses can use Thailand as a hub for manufacturing value-added and high-end products while expand the production base for low-end products to the neighbouring countries,” he says.
Tam suggests there are several factors Taiwanese companies should consider when investing in the fast-growing ASEAN region. “To succeed in foreign countries, you must have a long-term business plan, respect local laws and regulations, understand the local people and culture, and learn how to work with them,” he says.
Nannatee Wiboonchutikula, the director of the Thai Trade Office in Taipei, encourages Thai companies to grab the plentiful business opportunities in Taiwan.
“Thai businesses can export … processed food, rubber products, cassava products and cosmetics to Taiwan, and are able to invest in several promising sectors including restaurants, Thai massage and spa, and retail shops to sell Thai products,” she says.
Words by Somhatai Mosika
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