Saturday, April 27, 2002

Kriengsak Chareonwongsak Thailand

Thailand, therefore, needs to train a breed of business people to cope with this opportunity such as the ablity to speak Chinese, a thorough knowledge of all investment issues, policy and relevant laws, in addition to being able to meet the cultural demands of China's consumers.

Of particular importance here is the ability to speak Chinese. Although there are many Chinese descendants in Thailand most cannot speak Chinese adequately. This results from their parents not encouraging them to learn at home and the Thai education system not supporting the study of the Chinese language. Chinese schools in Thailand are not as popular as they were in the past as most rich Thai-Chinese children are sent abroad to study in Western schools. In addition, Chinese schools in Thailand generally provide education up to primary level only, and universities do not include Chinese as an alternative in entrance examinations.

To address this situation, short-term and long-term plans need to be developed for Thailand's people to become involved in conducting trade with China. Examples of a short-term plan are exchanging instructors, sending Thai students to study in China, adding Chinese as an alternative in university entrance examinations, providing business administrative courses in Chinese, organizing intensive courses in Chinese studies at the higher education level, and supporting research pertaining to Chinese trade and other related issues.

In the long term, information systems about China should be established and a new breed of qualified Sinologists nurtured in specific professional fields.

With China marching towards the status of a super power, Thailand needs to be in a position to fully capitalize on this for the maximum benefit of both countries. Plans needs to be drawn up now to define relations between the two regions, and, as mentioned above, the groundwork needs to be laid for a new generation of Sinologists to make sure these plans are fully implemented.


All roads lead to China

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th

Monday, April 1, 2002

Kriengsak Chareonwongsak Against this backdrop

Against this backdrop, it can be expected that Thailand will receive all the cooperation it needs from China. During last year's Sino-Thai trade negotiations over Beijing's WTO membership, China proposed tariff reductions for Thailand on 136 items, a decrease in the average rate from 30.2 percent to 13.1 percent (by simple average).

China’s WTO membership, then, will affect the expansion of the quotas for agricultural products until they are eliminated, as well as the liberalization of trade in goods and services, especially in hotel and restaurant businesses, where Thailand is particularly competitive.

Although Thai-Chinese trade will continue to rise with further economic recovery - to the point that Thailand will be in surplus, Thailand’s trade volume in the overall Chinese market remains very low. China's imports from Thailand rank 11th, with a market share of 1.97 percent, a slight increase over the previous year's (2000) figure of 1.89 percent.

In terms of the structure of agricultural goods and industry, China and Thailand are rivals. Hence, to successfully improve trade cooperation with China, Thailand should urgently improve its competitiveness. The Thai private sector should participate in China’s economic growth as a partner for progress, and not as a rival. This involves more targeted investment in China, becoming a bigger and more influential trading partner, and in enhancing tourism cooperation.

In order to increase Thailand's market share in China some barriers need to be overcome, including the uniqueness of Chinese laws, differences across the Chinese provinces, and an underdeveloped banking system.

All roads lead to China

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th