Summary: Advantage & Disadvantage of industry after becoming a part of AEC

Mr. Ittichai Yotsi, Director Bureau of Industrial Economics Research, the Office of Industrial Economics (OIE) revealed that OIE had studied a feasibility of Thai industry after the establishment of AEC in 2015; compared it with industries in other 4 member countries: Indonesia, Malaysia, Philippines and Singapore. It indicated that 36 industry groups of Thailand needed to be enhanced; whereas 61 groups of Indonesia, 43 groups of Philippines, 42 groups of Singapore and 17 groups of Malaysia needed to be remedied, as well.

All 36 industry groups of Thailand that need rectification can be categorized into 3 groups

The 1^st group: is the group that shows any sign of decreasing in advantage compared with other member countries. There are 13 industry groups; for example, organic chemical product, by product of caoutchouc, paper & cardboard, ceramic product, machine/ machinery, aircraft/spaceship, weapon/bullet, etc.

The 2^nd group: is the group that is in the stage of exacerbation or loss advantage from competition. There are 9 industry groups such as iron/steel, furniture, fur/faux fur, wood pulp or fiber from other celluloses, wool/fabric, fiber from plant/paper string, umbrella/shade, etc.

The 3^rd group: is the group that needs intensive care or loss more advantage. There are 14 industry groups; for instance, mineral fuel/mineral oil, pharmaceutical product, fertilizer, leather, other chemical product, natural pearl/gemstone, copper and copper product, nickel and nickel painted product, shoes, shin guard and similar product, musical instrument, etc.

For Thailand, there are 16 advantage industry groups such as automotive and auto parts group, plastic and product made from plastic, raw leather and leather, boat and floating construction, glass and glassware, iron and steel products, carpet and fabric for carpet, staple fiber, cotton, etc. By comparison with other 4 member countries, it indicates that Thailand is ranked in the 2nd place of having advantage industry group after Malaysia which has 17 industry groups; whereas, Singapore owns 13 groups, Indonesia has 6 groups and 5 groups belong to the Philippines.

After reaching the gateway of AEC, there are 3 advantage industry groups which are textile, zinc & zinc product and locomotive. On the other hand, there are 16 industry groups gain lessen disadvantages such as printing industry, electronic/electronic appliance, cork and product made from cork, lead and lead painted product, metals (i.e. iron, steel, copper, nickel, aluminum, lead, zinc, tin, tungsten, molybdenum, etc.), ore, silk, sport equipment, art, miscellaneous product, etc.

Source: Khaosod Newspaper