Thailand's exports to the newer ASEAN member nations – Cambodia, Laos, Myanmar and Vietnam (CLMV) – look promising in 2H10. This rosy outlook would be consistent with economic growth in those countries buoyed by improving economic conditions globally, especially in Asia, while the European sovereign debt crisis should not affect CLMV much.
Looking ahead, KASIKORNRESEARCH (KResearch) is of view that although the economies of CLMV between 2011 and 2015 will register higher growth than founding ASEAN states, opportunities for Thailand to tap into the CLMV markets will be limited, because their economies are still too small and purchasing power remains low in comparison to other ASEAN nations. In addition, gradual tariff reductions as committed to by them at rates lower than 5 percent for most products by 2015 may not benefit Thai exports much overall, although gains will be seen for certain product categories that are subject to higher tariff rates now, such as meat, detergent and non-alcoholic beverages. It should also be noted that the CLMV markets are dominated by younger consumers with relatively high purchasing power.
The CLMV bloc will become important for Thai exporters and represent an area that they should not overlook. To make greater inroads into those markets, exporters are advised to align their products to consumer behavior, wherein shipments should target capital cities or commercial hubs. Meanwhile, it is expected that Thai goods will face a new set of non-tariff measures imposed by CLMV, and heightened competition from rivals that have signed free trade agreements with them, including China and other ASEAN member nations. Thai products that are marketable in the CLMV bloc include consumer products, fabric, automobiles, motorcycles and related parts, auto accessories, helmets, furniture, construction materials and agricultural machinery.
Annotation
This research paper is published for general public. It is made up of various sources. Trustworthy, but the company can not authenticate. reliability The information may be changed at any time without prior notice. Data users need to be careful about the use of information. The Company will not be liable to any user or person for any damages arising from such use. The information in this report does not constitute an offer. Or advice on business decisions Anyhow.