Issue 12 : 15 Sept 2014

In a seminar hosted by the Department of Trade Negotiation (DTN), Ministry of Commerce, successful Thai businesspeople inform Horizon Thailand of what it takes to make it in ASEAN.

Patcharapol Suttidharm, the managing di-rector of cosmetics and spa manufacturing star iReal

Thanks to the country’s great infrastructure and wide range of government incentives, Thailand might be a great place to start a business, but expanding to other ASEAN countries is another story. Faced with what might at first appear a daunting task, at least one successful business person suggests you first visit the relevant government department before venturing across the region.

“Consulting the Ministry of Commerce is a recommended way to start a business from scratch,” says Patcharapol Suttidharm, the managing director of cosmetics and spa manufacturing star iReal Plus Original Equipment Manufacturer (OEM) and Original Design Manufacturer. “The departments such as the DITP, the SACICT, and the DTN can give you guidance on how to start a company, who to contact, and links with overseas companies.” The upcoming ASEAN Economic Community (AEC) in late 2015 will only tighten governmental ties between the ten member states.

Now iReal is one of the fastest-growing businesses in ASEAN, but it wasn’t always that way.

“When I set up my cosmetics company, I went to the ministry [of Commerce] and asked for contacts and guidelines,” adds Suttidharm. “They helped me draft out business plans with guidelines I could follow step-by-step and also helped me find out the latest market trends at that time.” He believes that knowing current regional tendencies is key to targeting your business focus.

Wimon Punkong, the director of the Research Division for the International Institute for Trade and Development, believes that changing lifestyles and increasing incomes have contributed to greater consumption of cosmetics products in the Mekong Region.

MAMA Noodles provides another example of the importance of knowing local market conditions when expanding across ASEAN.

“Thirty years ago, we set up a Mama factory in Vietnam. In the end, we had to close the factory and retreat to Thailand,” says Pojjana Paniangviat the managing director of President Interfood that makes the popular instant food. “Back then, Vietnamese people did not trust anything made at home so selling Vietnam-made products was a wrong decision. Later, when tried going to Malaysia, we rebranded MAMA into Ruski as we were aware of sensitive issues like religion. Mama was already well-known for its flagship pork flavour.”

Having a contact in the Ministry of Commerce and knowing the background of your target countries are key priorities for any entrepreneur. And beyond this, starting a business with Thai entrepreneurs who have experience of launching businesses within ASEAN can also be a shortcut to success.

For more information, please visit http://www.ditp.go.th/main.php?filename=intro

Words by Phraewphan Puangkasem