Steps needed to utilise China
Government urged to forge new measures
published : 3 Feb 2023 at 04:00
newspaper section: Business
writer: Lamonphet Apisitniran
Entrepreneurs are urging the government to launch new measures to develop logistics and equip them with better capabilities to compete with foreign rivals following the reopening of China, according to the latest survey by the Federation of Thai Industries (FTI).
This would allow businesses to take full advantage of the reopening, not limit the impact to tourism, said Montri Mahaplerkpong, vice-chairman of the FTI.
"Thailand must come up with more strategies to benefit from China's reopening" he said.
"We need to think of how we can increase our exports in the Chinese market."
The FTI asked 280 members who are company executives in 45 industries how Thailand should prepare for Beijing's policy shift.
Most respondents (74.3%) want the government to help manufacturers manage production costs, enabling them to better compete with foreign firms.
The FTI earlier expressed concerns that more expensive power bills, which are in effect as of January to April this year, will affect the competitiveness of Thai businesses which are struggling to deal with higher costs.
The Energy Regulatory Commission decided to increase the power tariff, which was driven by the higher fuel tariff, by 13% to 5.33 baht per kilowatt-hour (unit) for businesses, up from a previous record high of 4.72 baht per unit.
According to the pollster, 55.7% of respondents focused on a need to reduce logistics costs by developing transport facilities for goods in order to support border trade with China while 55.4% demanded the co-existence of tourism promotion and Covid-19 prevention.
Some 51.4% referred to a call for greater certification of products under the state industrial standard policy to screen out goods of inferior quality.
On the side of manufacturers, most repsondents (63.2%) agreed they have to adopt more technology to increase their competitiveness.
Some 57.5% of respondents emphasised exporters' plans to maintain their market shares overseas as Chinese rivals are expected to increase their exports following the reopening.
Some 55.7% of respondents agreed with a need to further develop products, with greater care on the impact of manufacturing on the environment.
Some 46.8% of respondents focused on efforts to increase exports to China where demand is expected to grow.