Nov 1, 2012

Thailand - Thailand not prepared for next ASEAN Economic Community

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2015 will see the launch of the ASEAN Economic Community (AEC) in South East Asia, the member countries have based their cooperation on “three pillars”, which are security, sociocultural integration, and economic integration.


The Thai government's planning agency has recently released a workshop presided by Prime Minister Yingluck Shinawatra, the result has confirmed what the business community feared most, that several industries remain unprepared and lack the supporting industries. As a result, The government has outlined its strategy to prepare Thailand's entry to the AEC.

The outlined strategies include the promotion of competitiveness; the improvement of quality of life or the development of basic infrastructure and logistics system to enhance connectivity.

The study pointed at the weaknesses of several sectors, amongst them the Rice and rubber, where Thailand is number one exporter, saying that they have high export potential, but the productivity is so low that it has become a concern as Thailand could lose its export ranking to other neighboring countries. The report underlined the country's need to invest more in research and development.

The tourism and services sectors did not score better as language skills are not a forte in the country but badly needed for workers, now that other countries are opening up to tourism such as Myanmar.

The study also found that customs procedures and border trade regulation improvements were not implemented as it was promised by the government or were simply delayed due to several factors, such as heavy bureaucracy or Government agencies lack of unity and synergies in management when it comes to implement new rules or laws.

Prime minister Yingluck Shinawatra seems committed to pushing for Thailand readiness for the ASEAN economic community in 2015, but economists say that the reality of the industrial sector's lack of competitiveness will eventually take toll on the country compared to more prepared neighbors".



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