The ongoing border trade event, which has attracted a large number of business operators from neighbouring countries such as Laos and Myanmar to the border town of Mae Sai in Chiang Rai, is a testament to the potential of local trade in contributing to the regional economy.
It's the first time that such a fair -- border trade -- is being held on such a big scale. More than 200 business operators from the Mekong Basin turned up en masse to meet their trading counterparts, especially those from 17 northern provinces, to exchange ideas and explore business opportunities to boost the border economy.
Anurat Inthorn, president of Chiang Rai Chamber of Commerce, said the fair is being held to give local business operators an opportunity to get to know one another, facilitate networking, and boost trade. The Northern Commercial Office said that trade between Thailand, Laos, Myanmar and southern China via the Mae Sai checkpoint has increased by almost 20% in the first half of last year to a total volume of over 80 million baht. However, there is potential for further growth and expansion.
The trade fair has helped place Chiang Rai, which is situated in a strategic location, on the regional trading map. All the participants from Myanmar, including those from the chambers of commerce and business operators come from cities that serve as trading centres with a bustling economy such Tachileik, Kyeng Tung, Tong Kyi, Muse while participants from Laos come from vibrant cities such as Luang Namta, Bo Keao, and Xayaburi.
Given the fact that these Myanmar and Lao cities have healthy populations, they are potential markets for Thai goods, especially food and consumers products, amongst other businesses. It has been reported that every year Thai goods always run out even before the fair is over, which means that that the event is a great opportunity for emerging traders to create and extend connections with their counterparts.
If managed well, border trade will help bolster the country's economy. What is needed from the government is an environment of better logistics and transport connections to ensure products from each side reach their intended destination. Needless to say, there is a pressing need for more fairs and expos to be organised so that traders can find new opportunities for mutual benefit.
At a time when the world is haunted by the fierce US-China trade war that threatens to trigger economic recession, border trade with potential cities grouped together as a key trading cluster could help ease the impact faced by global competition.
It's necessary for the Thai government and that of Myanmar and Laos to continue practising "good neighbourly policy" and do their best to maintain political stability to ensure that there will be no interruption in business and trade along the border.
In particular, they should pay heed to these local traders, provide stimulus measures and necessary logistics that promotes such transactions, enabling the business operators and investors to use their potential to establish and expand connections that will benefit the region.
Nauvarat Suksamran is an assistant news editor of the Bangkok Post.