Thai logistics must improve for ASEAN-China FTA
MCOT News, Thailand
Thai logistics must improve for ASEAN-China FTA
8 June 2007
BANGKOK, June 8 (TNA) - Thailand must address its logistics problems if it wants to receive full benefit from the ASEAN-China free trade area agreement, to be effective on 2010, according to new research.
Sutheera Prasertsan, Industrial Division Office director of Thailand Research Fund, said the ASEAN-China FTA would be implemented along with the development of the East-West Economic Corridor linking Mawlamyine (Moulmein) port in Myanmar to Da Nang port in Vietnam.
The economic corridor, if completed, would link the India Ocean seaside with that of Pacific. So, it is an opportunity for Thailand to play an active role in providing logistics services to both North-South and East-West Corridors.
However, the research on logistics system preparations for the ASEAN-China FTA found that Thailand’s logistics system still had problems in terms of database and major transport costs.
At the same time, Thai entrepreneurs do not have databases applicable to decision-making regarding business performance.
To solve the problems, he said, Thailand’s logistics system needed to be improved such as development of the country’s ports, and reduction of the container shortage.
Additionally, Thai consuls in China should give Thai entrepreneurs more training.
Mr. Sutheera conceded the distribution of Thai products in China is not quite successful. Most Thai fruits are shipped to the southern China such as Hong Kong and Guangzhou.
The cross-border trade between Thailand and Kunming went well due to complete infrastructure, but still experienced overlapping rules and regulation. Such problems need to be solved.
The East-West Economic Corridor, which is one of two key routes linking the region, stretches from central Vietnam’s port city of Da Nang, across Laos to Savannakhet, to Thailand’s Mukdaharn, Khon Kaen, and Phitsunulok and Myanmar’s main port and former capital of Yangon.
The North-South Economic Corridor stretches from Thailand into southern China, via Laos.
