Homebuilders are being urged to seek more
economical, better-quality raw materials and consider relocating their
production base elsewhere under the Asean Economic Community (AEC).
Teerasak
Boonwassana, a vice-president of the Home Builder Association, said the AEC
will give Thai homebuilders both an opportunity and a challenge _ while the
single market will create economies of scale, costs for competitors will also
be lower.
Forging
ties with business partners in the region will help increase competence.
"Homebuilders
should study the strengths and weaknesses of competitors in both domestic and
regional markets and study the behaviour, tastes and trends of consumers,"
said Mr Teerasak.
They
could also stand to improve the efficiency of production and services and focus
on human resources.
Thai
homebuilders will be able to expand in the Asean market, while others in the
region will be set to enter the domestic market.
"Most
Thai homebuilders, particularly small and medium-sized enterprises, know what
the AEC is but do not know how to adjust for it," said Mr Teerasak.
Even
though skilled workers will be able to move freely within the region, helping
to reduce shortages, they may be lured by higher wages or attractive
incentives.
Samma
Kitsin, director-general of the Real Estate Information Center, stressed the
importance of information when entering a new market.
Among
Asean countries, Myanmar is attractive, as it is seeing great changes and is
next to Thailand.
Thaweejit
Chandrasakha, a former president of the Association of Siamese Architects,
advises Thai homebuilders to be more careful about construction standards
applied in other countries that differ from those in Thailand.
He said
Thai architects should improve their working system. Most architectural work in
countries such as Singapore and Malaysia is done in 3D, while many Thai
architects are still drafting in 2D.
Yanyong
Phuangrach, the commerce permanent secretary, suggests networking to help
increase competence and reduce costs in the larger market.
"Thailand
is more advantageous than other countries in the region thanks to its central
location," he said. "Our logistics system can link neighbouring
countries."
There
are 601 million potential customers in Asean. While Cambodia, Laos, Vietnam and
Myanmar have a lower per-capita income than Thailand, those countries' middle
classes form a segment ripe for growth.
Asean
is the most important market for Thai homebuilders, followed by the Middle
East, and the Commerce Ministry plans to help homebuilders create networks
within and outside Asean.
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