Jewelry web blog

Amid optimism about brighter prospects for Thailand and its partners under the Afta agreement, the Federation of Thai Industries (FTI) has warned that some industries in Thailand could be affected.

FTI chairman Santi Vilassakdanont said the sectors that would benefit from lower tariffs were agricultural products, fishery, wood, rubber, electrical and electronic goods.

The sectors’ aggregate exports to Asean should rise by 20 percent between 2010 and 2015, tiffany jewelry although imports could rise by 30 percent over the same period.

The prospects for some Thai SMEs are less rosy. Mr Santi identified six potential problem areas:

– Steel firms will see lower-cost steel from Indonesia, which has many blast furnaces.

– Machine operators will face heavier competition from Malaysia and Vietnam.

– Auto parts makers may see Thai car manufacturers buying cheaper parts from Malaysia or big first-tier parts makers moving some manufacturing to Vietnam.

– Textile producers could see major manufacturers choosing other bangles.

– Plastics operators will be affected as Vietnam starts exporting petrochemical items and more plastics factories will open in Vietnam and Cambodia.

– Furniture producers will be affected by cheaper products from Vietnam.

However, full integration under the Asean Economic Community (AEC) by 2015 could remedy some of these problems.

For example, Thai businesses could invest in processed agricultural products overseas to necklaces the costs of materials and transport and take advantage of low wages.

The Thai Chamber of Commerce has outlined seven strategic areas that need attention ahead of AEC integration: tourism, textiles and fashion items, jewellery and accessories, agricultural products and food, construction and real estate, health services, and border trade.

Seven more strategic sectors are to be added this year.