The retail industry is
expected to grow by 6-7% next year on the back of rising farm product prices
and higher wages, which will boost people's purchasing power, said executives
at a seminar.
The biggest winner will likely be the convenience-store
segment, which is projected to expand by at least 15%.
The formation of the Asean Economic Community (AEC) in 2016
will be a major factor driving the sharp growth of the retail sector, said
Santichai Santawanpas, deputy director-general of the Internal Trade
Department.
The single market with 10 countries will have a population of
more than 600 million, with the promise of more urbanisation when the
middle-income group grows.
Besides, the number of tourists and border trade will
increase, benefiting Thailand's retail business.
The retail business, worth 1.4 trillion baht or 12% of the
country's gross domestic product (GDP) in 2011, is expected to expand 6-7% next
year, said Thanavath Phonvichai, vice-president for research at the UTCC's
Center for Economic and Business Forecasting.
The Thai retail business will expand to Asean in the future
as Thai operators have higher management skills and merchandising expertise
than their regional peers.
"I'm not worried about the entry of foreign retailers
into Thailand. Most of them are non-food and they will find it difficult to
secure space to open their outlets," he said.
In Asean, Vietnam is the most interesting for retail as the
local government allows foreign investors to own up to 100% in the sector.
But the disadvantages of Thais are limited investment budgets
and lack of English-language proficiency.
At home, there are 9,000 convenience stores nationwide and
the number will rise next year as modern trade will further expand to
provincial areas.
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