Thai
businesses must be ready to seize Myanmar's new opportunities by late
2015, when the Asean Economic Community (AEC) will kick off, or they
will be squeezed out of the market by Japan and China, say experts.
Nitivadee
Manitkul, the Foreign Ministry's director of economic relations and
cooperation, said Thailand's private sector currently lacks the
knowledge to take advantage of the trade agreements or operate
effectively in Myanmar.
Japan, on the other hand,
has already set up an information office to help its companies gain a
foothold in the previously military-run nation, she said.
"Currently,
80% of Thai-Myanmar trade occurs on the border and still operates under
the same conditions as before Myanmar opened up," said Ms Nitivadee.
She said Board of Investment initiatives are also failing to promote Thai investments abroad effectively.
Myanmar
will chair Asean next year, then the AEC will take effect at the end of
2015, reinforcing the Myanmar government's steady efforts to promote
foreign investment, said Ms Nitivadee.
In a related
development, Thailand's International Institute for Trade and
Development will soon issue a report on Thai investment opportunities in
Myanmar to spearhead the delivery of useful information to Thai
businesses.
"One of the most overlooked factors in
conducting businesses in Myanmar is the country's business culture such
as business attire," said Teera Sindecharak, a researcher on the report.
He
said while Thailand has a long-established trading relationship with
Myanmar, the historical link can also involve unresolved grievances.
"Our perceptions of them must change to accommodate this new reality," said Mr Teera.
To
realise opportunities in Myanmar, Thai investors must overcome
challenges such as inadequate basic infrastructure and protracted ethnic
conflicts.
But Watcharas Leelawath, the report's
lead researcher, said understanding local and, especially, foreign
investment law is the most crucial aspect for Thai firms.
"But what we found out during our research is such laws are ambiguous and difficult to follow," he said.
Mr
Watcharas said government seminars should be organised to inform
investors, who could miss out through not being aware of new trade
deals.
source: MENAFN
No comments:
Post a Comment