Bangkok--8 Feb--AEC
Thailand in the view of both Thai and foreign investors
"Thailand has no longer been a rising star. Political conflicts, internal conflicts, corruption, labor shortage and communication problem are eclipsing Thailand's potential more and more. However, there is still light at the end of the tunnel. Looking around and business opportunities in China and ASEAN are still possible."
Khun Kraisin Wongsurakrai, AEC Prompt vice-president of Thai Chamber of Commerce, member of Thai-Chinese Business Council committee, and president of Thai-ASEAN young businessmen group, gave an interesting interview at the BOI Fair 2011.
Members of ASEAN include Thailand, Myanmar, Laos, Cambodia, Vietnam, the Philippines, Singapore, Malaysia, Brunei, and Indonesia.
Trade with ASEAN members
2010 Value (million baht) Jan-Nov 2011 Value (million baht)
exporting to ASEAN 1,374,323 exporting to ASEAN 1,505,104
importing from ASEAN 940,137 importing from ASEAN 1,042,961
trade surplus 434,186 trade surplus 462,143
ASEAN has many changes in terms of tariffs, market, competition, trade measures, investment, capital mobility, and skilled labor mobility. Non-tariff trade barriers appear to be major setbacks in trade. These trade barriers are hygiene measures, import certificate issuing, goods control before exporting, and other technical obstacles. As a result, trade liberalization is applied to the service sector to reduce setbacks while personal/juristic person shareholding is raised among ASEAN nationals.
China is another country worth keeping eye on since it is the world's second biggest economy after the United States.
Value - million baht
Thai-Chinese trade 2007 2008 2009 2010 2011(Jan-Nov)
exporting to China 511,109.61 532,319.04 548,760.05 678,631.84 763,027
importing from China 564,566.24 670,342.74 586,127.09 775,450.63 853,338
balance of trade -53,456.63 -138,023.70 -37,367.04 -96,818.79 -90,311
Financial status, distribution network and customer service should be taken into consideration when looking for a business partner. Investors should bear in mind that imposters, out-of-game competition and imitation are parts of investment. Big markets can be both investment opportunity and risk. Investors thus have to thoroughly study and analyze to understand Chinese consumers. They should learn about China's history, culture and quality of people in each province so as to build good relationship with China and select suitable products to supply to the market.
Rules, laws and etiquettes when doing business with China
Give importance to name cards
Smile
Learn about measurement system
Have eye-contact with business partners
Create good relationship first and do business later (Kuansi) = connections and relationships
Learn to save everybody's face
Seek a face-to-face meeting
Do not be too friendly too much
Let him smoke
Avoid white outfit
Do not give wall clock as a gift
Investors have to understand China's history when doing business with Chinese people, in particular, political situation between China and Taiwan. Good understanding about trade culture, way of life and China's politics will help your business grow well in China.