Thailand - Home-building standards must be high to benefit from AEC: seminar

The Asean Economic Community will open business opportunities for Thai contractors, home-builders and related businesses such as engineering, architecture, and manufacturing of construction materials, Commerce Ministry permanent secretary Yanyong Phuangrach, said yesterday.

Speaking at the "Thailand Economic Profile, AEC Adaptation and Housing Development Direction" seminar, he said the AEC, which takes full effect in 2015, would open the whole region up to these businesses.

However, they would have to study the regulations of the various Asean members and raise their standards to meet AEC requirements, he said.

Taweejit Chandrasakha, former president of the Association of Siamese Architects under Royal Patronage, agreed that construction and related business wanting to take advantage of the opportunity to expand into the region would also have to develop their quality to meet international standards.

"Thai contractors, property developers, home-builders, architects and engineers will have to learn the rules and international standards when they expand into AEC member countries," he said.

Home-building companies will have to study the rules regarding building construction in each country and be concerned about the quality of the products they use to ensure the security of the people who use their buildings.

The design and construction process will be evaluated by experts to ensure safety standards. Those companies that can develop their systems to meet the standards will be the ones that benefit from the AEC. If they do not make this investment, they will find themselves facing heavy competition not only from domestic players but from elsewhere in Asean as well, he said.

PLUSES AND MINUSES

Prasong Tharachai, former president of the Engineering Institute of Thailand, also accepted that the AEC would provide both pluses and minuses for the construction business. The most obvious benefit is that the market will be bigger than Thailand alone, but the AEC will also open up the Kingdom to foreign firms that can meet the regional standards for engineering, architecture and construction.

Home Builder Association president Dr Patchara Tantayanyong said these principles also applied to her sector. The home-building business is an integral part of the growing residential industry. As small private contractors often face problems with service, design and construction quality, the association this year is issuing a policy to revamp standards throughout the system, she said.

The strategy aims to maintain consumers' confidence in local home-builders in terms of quality and reliability, which will result in expansion of the industry.

The value of the home-building market in metropolitan Bangkok reached Bt55 billion last year. Companies belonging to the Home Builder Association held 20 per cent of the market while independent contractors accounted for the rest.

SOMLUCK SRIMALEE

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