BANGKOK, 20 June 2012 – The University of the Thai Chamber of Commerce has predicted that Thailand’s export to Myanmar will grow two-fold annually after the establishment of the ASEAN Economic Community (AEC) in three years’ time.
The UTCC’s International Trade Studies Centre has carried out an analysis on Thailand’s export opportunity to Myanmar after the AEC officially forms in 2015. The center’s Director, Mr. Aat Pisanwanich, quoted the result as showing that Thai exports to the neighbouring country will expand by 27% in volume while their value will double to 14 billion US dollars annually compared to 7 billion dollars prior to the AEC.
According to Mr. Aat, the export of industrial products is expected to see a bright future in the AEC, growing 74.3% with a value of 10 billion baht per annum. Top Thai industrial exports to Myanmar are currently machinery, fuel, automobile, plastic, electrical appliances, rubber and rubber-based products, organic chemicals, steel and pharmaceutical products. However, after the AEC, products such as cotton, aluminum, ceramics, cement, furniture, copper and leather, will also see an increase while the export of shoes, soap, garment and books will experience a decline.
Meanwhile, Thai agricultural products will stand a smaller chance at growing in comparison with industrial products, given Myanmar’s increased agricultural production after the recent opening of the country. With an abundance of agricultural terrain available, Myanmar will rely less on imports from Thailand. Thus, Thai agricultural exports to Myanmar will drop to 25.7% from the current 27.3%.
Meanwhile, the UTCC has recently launched the AEC Strategy Center to provide entrepreneurs with in-depth information on business, trade and investment in ASEAN in a bid to enhance the competitiveness of Thai entrepreneurs for the AEC.