PM Yingluck backs upgrade of ASEAN-India ties to strategic partnership

Prime Minister Yingluck Shinawatra last week expressed Thai government support for upgrading ASEAN-India ties to a strategic partnership level.
Yingluck, attending the ASEAN-India Commemorative Summit in New Delhi, said building and expanding linkages are important keys to the partnership between the two sides as sea, air and land networks will eventually increase trade and investment.
India hosted the ASEAN-India Commemorative Summit in New Delhi on December 20 and 21 to mark the 20th anniversary of the ASEAN-India dialogue partnership and the 10th anniversary of the ASEAN-India Summit-level partnership. The theme of the summit is “ASEAN-India Partnership for Peace and Shared Prosperity”.
India-ASEAN trade has grown more than ten times in the ten years since the annual summits began.
After implementation of the FTA for goods, trade grew by 41 percent in India’s 2011-2012 fiscal year. Two-way flows in investment have also grown rapidly to reach US$43 billion over the past decade.
“The ASEAN leaders highly valued the effective cooperation that India has made with the grouping in strengthening regional connectivity and linkage and building an ASEAN Community,” she said.
Ms Yingluck said India’s “Look East” Policy and ASEAN’s “Look West” policy were matching connectivity to mutual benefit.
During the summit, the leaders adopted a Declaration of Vision to lift bilateral ties to a strategic partnership level. The document defines major directions for the development of the ASEAN-India relations and the effective and full implementation of their cooperation in various fields ranging from politics, security to culture, society and development cooperation.
The two sides affirmed their determination to fulfill the goal of $100 billion in two-way trade by 2015, and decided to sign the agreements on trade, services and investment on an early date.
They also reached a high level of consensus on active participation in the negotiations on agreements on trade, services and investment, paving the way to establish a comprehensive ASEAN-India Free Trade Area and creating favorable conditions for the two sides and partners to negotiate the Regional Partnership (RCEP), fostering linkages in the fields of air, sea and land transport, digital technology, and the building of a Mekong-India Economic Corridor.
The two sides also agreed to cooperate in developing small- and medium-sized enterprises, human resources development, and in coping with challenges in climate change, food and energy security, urbanization, natural disaster management and fighting the drug trade. (MCOT)

 

November Industries Sentiment Index highest in 5 months

The Thai Industries Sentiment Index (TISI) rose from 93 in October to 95.2 in November, the first positive sign in five months, a senior industrialist said last week.
Payungsak Chartsutipol, chairman of the Federation of Thai Industries (FTI), said the higher TISI is attributed to purchase and sales orders, production volume, capital cost and financial performance.
He did, however, point out that a TISI below 100 reflects an unsatisfactory level of manufacturers’ confidence.
The index on purchase and sales orders was above 100 which showed industrialists’ confidence on expanded demand in various sectors including automotive, construction, food, electrical appliances, electronics and energy, Payungsak said.
He said the TISI is forecast to reach 99.6 in the next three months.
The export index improved in November thanks to increased orders from overseas for the holiday season while negative factors which impacted manufacturers’ confidence were the global economic situation, domestic political uncertainty, higher production cost due to increased expense on raw materials, energy and the minimum wage increase to Bt300/day from Jan 1, the FTI chairman said.
Thai industrialists urged the government in November to enhance cooperation with neighboring countries to pave the way for small- and medium-enterprises (SMEs) in Thailand to increase export and service to those countries before the ASEAN Economic Community materializes in 2015, he said.
Thai SMEs which will be severely affected by the Bt300 minimum wage implementation need urgent assistance to stay competitive in the market while the government should develop skilled labor to cope with more sophisticated industrial production, he said. (MCOT)

Car manufacture volume in Nov hit highest record in 51 years

Thailand must extend its production bases into neighboring countries, especially Myanmar, to pave the way for trade and marketing penetration into South Asia where the total population is three times higher than in Southeast Asia, according to an adviser to the prime minister.
Olarn Chaipravat, president of the Thailand Trade Representative, said investment in neighboring countries should focus on agriculture and labour-intensive industries.
The opening of Myanmar will attract foreign investment while that country’s labour force in Thailand will eventually return to their homeland, causing a labour shortage in the textile and fisheries industries in Thailand, he said.
Olarn said it is time for Thailand to revamp its manufacturing industries by concentrating on high quality services and products using advanced technology.
It is important that the Thai private sector enters joint ventures with or owns shares in overseas companies investing in Myanmar, he said, adding that the Thai private sector will soon be invited to survey industrial estates in Myanmar, Cambodia and Laos to look for future investments in those countries.
Arkom Tempitayapaisit, secretary general of the National Economic and Social Development Board (NESDB), said Thailand currently focuses on a five-point strategy which involves goods, service, investment, labour supply and capital funds.
The government will be asked to push forward the strategy including cooperation with Myanmar and the development of the Dawei deep seaport project, he said. (MCOT)