Sign up | Log in



Home  >>   Daily News  >>   Asean News  >>   Trade   >>   Thai companies looking at Asean for growth
NEWS UPDATES Asean Affairs    20 July 2012

Thai companies looking at Asean for growth


The private sector in Thailand is pinning its hopes on Asean and other areas such as Eastern Europe as it does not expect the euro-zone crisis to end soon.
The tourism industry is looking for new markets such as Eastern Europe, Sisdivachr Cheewarat-tanaporn, president of the Association of Thai Travel Agents, said yesterday.

Tourism has not been adversely affected yet by the sovereign debt crisis in Europe, as the number of arrivals from that market rose by about 10 per cent in the first half of the year, he said. The industry actually is more worried about political uncertainty here in Thailand than the euro crisis.

However, the industry is also looking for new markets that could help cushion Thailand against future impacts from the ongoing crisis in the euro zone, he said. One of the promising markets is Eastern Europe.

For example, tourists from Russia increased sharply to 1 million last year from about 200,000 in previous years, he said. Poland is also a potential market for Thailand's tourism industry.

Sisdivachr also expects a positive impact from the Asean Economic Community (AEC), which will start in 2015. Thailand could work with neighbouring countries to attract more tourists to the region, he said.

However, he is worried that there might also be negative impacts from the Asean single market, since it may drive out small and medium-sized tour operators because of competition from large firms.

As the government is aiming to double tourism revenue from about 800 billion baht (US$25 billion) annually, the government must be careful about the AEC's impact on small tour operators, he said.

Swift large inflows and outflows could destabilise the market.

Thailand, whose exports account for about 70 per cent of gross domestic product, will also be affected by lower exports because of the crisis in Europe.

Meanwhile China will not face serious problems with capital flows as the country has not yet opened its financial market. India and China also have large domestic markets that they can rely on when the global market is weak, he said.

Kobsidthi Silpachai, head of market and economic research of Kasikornbank Group, said European leaders had not yet found concrete solutions to solve their sovereign debt crises and banking weaknesses.

He said austerity programmes implemented by Greece and other troubled countries would create a vicious cycle of slowing economies, lower tax revenue, larger budget deficits, falling bond and asset prices, and falling bank capital as bank reduced risky assets.

He said that though the European Central Bank had increased money supply, banks were not lending to businesses. This is different from the United States, where banks have started to lend to businesses again, he said, so the market has a positive view of the US economy.

The impact on Thailand from the euro crunch will be both direct and indirect, Kobsidthi said.

Thai exports to the euro area dropped 10 per cent last month. Since Thailand also is actively engaged in global supply chains, trouble in Europe will have indirect impacts on Thailand as well, he said.

"What we can do is to minimise the impact, and we may place hope in the AEC, but lot of work has to be done, such as tax reform," he added.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    20 July 2012  Subsribe Now !
• Indonesian Foreign Minister on mission to...  Subcribe: Asean Affairs Global Magazine
• Thai companies looking at Asean for growth  Asean Affairs Premium

• Mercantile exchange planned in Malaysia

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Malaysia retains World's 3rd best global...
• Philippines thanks China for dam project  
• AEC worries for youth of Laos
• Laos pig farmers face pressure from foreign...
Asean Analysis              20 July 2012 Advertise Your Brand
• Asean Analysis- JuLy 20, 2012  
• Asean Weekly- JuLy 20, 2012 Sponsor Our Events

Asean Stock Watch      20 July 2012 

• Asean Stock Watch-July 20, 2012 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand