ASEAN KEY DESTINATIONS
Thai franchises unprepared for AEC
Most Thai franchise businesses are not ready for liberalisation under the Asean Economic Community (AEC) in 2015, says Saward Mitaree, president of the Franchise & License Association.
This is because they lack human resources development, organisational management, and registered processes on trade and services, especially language knowledge.
The association expressed concerns the Franchise Business bill is unclear. The law will help entrepreneurs compete in the global market and the first draft is awaiting a public hearing. It is expected to be proposed for cabinet consideration early next year.
Thai businesses are considered weak on technology and information technology, so they will be adversely affected from the liberalisation of trade and services under the AEC if they do not adapt.
Businesses with potential include services such as tutorial schools, car care services, restaurants and spas.
Banyong Limprayoonwong, director-general of the Business Development Department, said it will focus on supporting Thai franchises on expanding in the global market, especially Asean.
Thai restaurants, bakeries, beverage makers and spas are strong enough to compete in the world market, he said. The department hopes to promote construction, drugstores, and educational institutions to expand in Asean.
The association has 514 members, 480 of which are Thai franchises and 34 foreign. Franchises will generate nearly 170 billion baht this year, up from 135 billion last year.
Thai franchises have three associations, and the FLA wants a single association with a common strategy to compete with foreign competitor.
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