Review of AEC Thailand Impact

   The Impact of 10  ASEAN countries Economic Community   

AEC 2015 reshaped the ASEAN into single market 600 million people.  On January 1, 2015 will be the date on which the 10 ASEAN countries including Thailand, Myanmar, Laos, Malaysia, Vietnam , Indonesia, Singapore, Cambodia, Philippines, Brunei .

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Production and the market, which makes the economy of the Landscape. This sector has changed dramatically in the 10-Nation ASEAN group. Becoming the open market population within ASEAN can come,conduct business operations. The import and export are not paid taxation as well as labor can move freely.

 

  Thailand's aggressive move to a market of 600 million people. By a group of 10 ASEAN countries have a combined population of 600 million people. Trade with the outside world, representing a number 2.2 trillion dollars. Annually (including the leadership of others to sell) from a year 2010 has outside investors to invest worth 80,000 U.S. dollar's, 70% of investment in the services sector in the region. Most groups will become middle class. Purchasing power is increasing. Make a market in which all countries are particularly interested in the country. Myanmar has abundance of natural resources continues.

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   AEC business impact of trade and investment. ASEAN +3 +6. If consideration of the hypothesis that the greater impact. What is the impact on the economy of the region has been set. Notice it's 3 below.

 -1 Sector trade will have an impact on the influx of modern trade business, so some may be subverted. Business should be updated to address supply chain. From abroad, But the impact of the AEC to operators. Small businesses in the trade can still unclear. Because Thailand advantage competition in ASEAN in the year 2010 GDP of the business sector. Retail trade enterprises reached 1.05 million, which equals 78.8% of the trade of Thailand.The businesses will be affected by the trade group ASEAN +3 (China, Korea, Japan) and ASEAN +6 (India, Australia, New Zealand, ASEAN +3) have been used right to free trade zone, the mall may be hijacked Share of the market.Thailand which is seen in the center. It is possible that the ASEAN countries, China using Thailand as a by-pass product. This gives rise to a springboard to China to compete in ASEAN markets more convenient. The route NO. R3E (Kun Ming - Bangkok) and then through Yangon to Kuala Lumpur. For this reason, it becomes strategically Thailand in ASEAN.

-2 Businessman facing the impact of foreign workers motive causes migration nation itself. Statistics show that from a number of foreign workers in the small business do not under 2 million from Vietnam, Myanmar, Laos and Cambodia. While these countries have opened their doors to trade and to accelerate development. Adaptive expansion of economy, the higher the resulting deficit unskilled labor in this sector. But the one which produces a good effect. Thailand is not required to bear the social cost of maintaining health.

-3 Business in the affected parts of the OEM orders for Countries where the cost is cheaper. Nowadays, a lot of businesses all contract manufacturing by order of the customer, such as automotive parts, secondary feet of finished furniture and consumer goods, mainly clothing. Production to both domestic and foreign. The advantages are,not have to bear the cost and reducing the design and research for market risk as well as reduce the risk of capital improvements. Product design process. Yet, after the opening AEC makes the business even more because this country has cost will be an advantage can scramble share more trade. Cause to move production to countries with cheaper labor or directed purchase price to lower. As a result, the business can continue. With good profits.

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 Review of 10 Countries (ASEAN): Sme-Business Section  The study and analysis of policy measures, AEC in sme-business by displaying the potential of the business group. Following the AEC review; 

  - Thailand : strong point, skill, art, work available. If the mind can take a business intelligence application to Thailand. Services and products. It makes the product more prominent. weak point: in terms of access to capital, the lower the Vietnam. Behalf, Malaysia, Singapore. The application of technology is less than 20%of Malaysia and Singapore. The businessman Thailand. Many lack of coordination across government networks, though. Thailand has lower cost exporters in Vietnam. 17.33%, but compared to the cost of labor Vietnam, Thailand is lower than 115.63% this made. Thailand, Vietnam, significantly disadvantage them.

  - Myanmar : for the first time after opening up the group.stong point: AEC is the most fascinating country rich in resources of natural, wages lowest in AEC.weak point: limit access to capital, high interest rates and Important factor in the production of electricity in the country is not sufficient.

  - Brunei : strong point. Capabilities contact with. International business costs and lower energy than Thailand. weak point: wage rates much higher than Thailand. Can produce a lot of the standards are low. Because production for the domestic market only.

  - Singapore : strong poin:It's capacity to interact with foreign In most countries, a contact AEC. Application of technology. Technology in the production process. Modern Management. The cost of the black Lowest in the business. AEC and the countries that invest most in World ranking.

  - Philippines : strong point. The majority of the workforce speak english well. weak point: It's labor prefer to work abroad, large companies access to capital at a lower limit application of technology. New technology to use less.

  - Malaysia : strong point. can speak good English at the beginning. Capital Halal products under average cost rate of exports is lowest countries in the AEC. Has been ranked as the country's credit# 1. weak point: the application of new technology tech low. And wage rates higher than Thailand.

  - Vietnam :strong point. business innovation capabilities. Advantages and the large number of new businesses in the form of labor concentration because of the many working and wage pressure lower than Thailand.weak point: the English-speaking low, limited access to funds. A low cost, standardized products is minimal.   

  - Indonesia :strong point. As the nation's largest and. Population (237.5 million people) in the Islamic world. The advantage of the domestic market. With a rate wages fall below the country average of U.S. $ 67 dollars per months.weak point: making the cost of production and the cost is less than it's standard.

  - Laos : strong point. the advantage is that low-wage workers. About 1.30 dollars USD per day. weak point: the high cost of international transport group in AEC because landlocked countries, and limit access. The funds are low and the lack of skills in the production there is less week.

  - Cambodia : strong point. the energy source of natural gas, also not been developed to be used a lot. wage is not high. weak point: it is a country that has many system to established a business process.

 Conclusion : Among the AEC in summary, the overall majority of the advantage or disadvantage of the AEC in the analysis of wage pressure. minimum dimensional domestic market, the export cost, minimum of company's setting, limited access to capital into account. Comparison founded that Malaysia and Singapore are at a high level. (The cost of exports, restrictions on access to capital). Thailand at a good level (Company's setting). Indonesia at high level (Domestic market).     To end up on all topics judge that the countries with the most potential to operate in groups AEC country is  Vietnam .

 REF: MANY THANKS TO; SMEs MAGAZINE.

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