Page 77 - FoodFocusThailand No.159 June 2019

SURF THE AEC

(2) Sichuan province, the center linking the economy of China 2. Investors should find the opportunities emerge from the silk
and ASEAN, is another province to be closely watched (especially road, both domestically and internationally. Not only that, the advance
Chongqing and Chengdu). Sichuan is a main hub connecting the trading systems like E-Commerce and Blockchain will enhance Thai
Chinese railway to the global network. (Other significant provinces SMEs to compete in the global level.
include Guangdong, Fujian, Jiangxi, Guizhou, Yunnan, Hunan, 3. SMEs must readjust to the increasingly competitive global
and Guangxi) market. The Ministry of Commerce has provided many projects to
(3) Lao PPR’s Bor Ten (the border town to China) is where intellectually support and strengthen Thai SMEs, for instances, Blue
China has established a special economic zone to transform the Flag Shop (Thong Fah Pracharat), Blue Flag Mobile Shop (Rod Reh
nd
city into the 2 Shenzhen. Na Sue), an application “Pracharat Money Bag” (Thung Ngern
Meanwhile, the Indian silk road, which cut from the Indian Pracharat Mobile Application), CLMVT Connex (by Trade Policy and
border through Myanmar and into Thailand’s Mae Sot District, is Strategy Office), and trading of local products cross region through
expected to be completed by mid-2019. The route links to India’s Thong Fah Pracharat network. The Ministry of Commerce also
Golden Quadrilateral project, which pass by 10 economical cities; encourages SMEs to go online in order to pave ways for their national,
Mumbai, New Delhi, Kolkata, Bengaluru (also called Bangalore), regional, and international success. Most importantly, SMEs must
Chennai, Hyderabad, Ahmedabad, Pune, Surat, and Kanpur. The seize the opportunity to merge its supply chain into the silk roads, for
route will prove to be a great opportunity for Thailand to penetrate example, Thai rubber producers can pair itself with India’s Apollo Tyres
India’s 1.3-billion-population market. (with branch in Thailand) and China’s Linglong Tire.
4. The food industry of Thailand has the high growth potential,
Analysis especially after the country welcomes more than 200 million middle-
1. The connection of Thailand’s silk road is not a coincident, class Chinese tourists who shift from travelling domestic destinations
but a strategic move by Thailand to comply with the evolving to Thailand. It is a great news that Thailand can now produce “Caviar”,
global economy. As we are approaching the Asian Century which could be a boost for the food industry’s tourism aspect targeting
following the ADB’s prediction, the silk road will attract investment Chinese tourists.
into EEC and allow Thailand to penetrate 64 markets across the
globe.

JUNE 2019 FOOD FOCUS THAILAND 77

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