Issue 41

The newly-established ASEAN Economic Community (AEC) is opening up opportunities for entrepreneurs across the region. To ensure that businesspeople are making the right decisions, one bank’s intelligence unit is providing its clients with an in-depth macroeconomic outlook.

Finding the right way to do business in a foreign landscape may be daunting for some entrepreneurs, however, financial institutions are now providing consultancy services to ensure that everything runs smoothly for their clients.

The Economic Intelligence Center (EIC) is part of Thailand’s Siam Commercial Bank. It provides insight into all industries within the country for both Thai and foreign businesses.

“Though most of our customers are Thai, we do have a few that are Chinese or Japanese who are investing in Thailand and want to understand the business community here,” says Teerin Ratanapinyowong, head of Sectorial Strategy and Export Cluster of the EIC. “Many Thai companies that we work with are also going over to do business in Indonesia, Vietnam and Myanmar.”

Ratanapinyowong adds that the centre offers macroeconomic and sectorial impact analyses based on research and dialogue with businesses. EIC also offers numerous advisory services, including growth opportunities, competitive landscape assessments and market entry strategy.

“The AEC greatly widens the market in the region; GDP growth in Myanmar, Laos, Cambodia and Vietnam is strong, and their populations will drive demand for products and services from Thailand,” says Ratanapinyowong, adding that it is not just within ASEAN that the prospective market for Thai goods and services is strong. “There are many emerging markets like the Middle East, South America and Africa, creating much more demand for goods from Thailand, especially food and agricultural products.”

Ratanapinyowong believes that Thailand will also need to develop from an agricultural and manufacturing-centred economy. “I think Thailand would do well as a creative economy,” she says. “Thai labour is already of a very high quality. They are able to learn quickly. That’s why we are strong in the electronics and automobile assembling industry.”

Another factor that cannot be overlooked is the role of the internet and e-commerce to facilitate businesses.

“E-commerce also has a lot of room for growth. For example, mobile applications for SMEs can enable entrepreneurs to expand their businesses overseas. New business models are also being created every day,” says Ratanapinyowong.

The EIC believes this year businesses will see higher growth due to increased spending from both the government and private sector.

“For 2016, government spending will go up. Consumer confidence will increase as more money is put into the market. Tourism in Thailand will also be another sector that sees healthy growth, as middle-income Chinese tourists are attracted to the country,” says Ratanapinyowong. “Construction, tourism, retail and wholesale are all sectors which will have a good outlook in 2016.”

For more information, visit www.scbeic.com

Words by Pimsirinuch Borsub