FTI assesses “China opens up the country” to boost Thailand’s economy

Mr. Montri Mahapruekphong, Vice Chairman of the Federation of Thai Industries (FTI) The results of the 25th FTI Poll revealed in January 2023 under the topic “How to Prepare for China Opening”. After China’s official opening of the country on January 8, 2023, the overall picture of the Chinese economy showed clear signs of recovery in the manufacturing and service sectors.

So most FTI executives assessed that China’s opening will also have a positive impact on Thailand’s economy. Especially from the tourism sector which is expected to expand from Chinese tourists, which will help boost domestic demand. as well as expansion in demand and demand from economic activities after China opened up the country. It will also be a supporting factor in expanding Thai exports to China as well.

Therefore, in order to create business opportunities from China’s opening, FTI executives suggested that the government sector must take care of production costs so that the private sector can compete on prices in the export market. And there is cooperation to develop a cross-border shipping system to China to reduce the logistics costs of Thai products. Including the facilitation and promotion of tourism along with strict measures to prevent the spread of COVID-19

As for the industry itself, it must be prepared to adapt its business model. Use technology to reduce business costs to compete and penetrate the Chinese market. There is a support plan to maintain the original export market after China resumes expanding exports after the country opens up. Including developing products and services to meet international standards. Along with taking care of the environment to create strengths for Thai products

In addition, when asked about concerns regarding the arrival of Chinese tourists From the situation in China where the COVID-19 epidemic still exists, it was found that the majority of FTI executives were not worried. And sees it as an opportunity for the Thai tourism sector to recover as an engine to drive the Thai economy further

From the FTI executive survey (Chief Executive Officer Survey) of 280 people, covering executives from 45 industrial groups and 76 provincial industrial councils. There is a summary of the results of the 25th FTI Vote, 5 questions as follows:
1. What are the industry trends? After China opened up the country (Single choice)
1st place: 45.4% growth.
2nd place: Fixed 45.0%
3rd place : a slowdown of 9.6%.

2. How will the opening of China affect the Thai economy and industry? (Multiple choices)
1st place: The tourism sector grew as Chinese tourists increased demand by 80.0%.
in the country
2nd place: China’s demand and demand from economic activity grew by 60.4%.
which relaxes after China opens up the country
3rd place: Increase domestic investment opportunities from Chinese investors by 37.1%
4th place: The problem of shortage of raw materials and parts is solved. making raw material prices 35.4%
decrease gradually

3. How should the government promote the industrial sector after China opened up the country? (Multiple choices)
1st place: taking care of production costs to be competitive 74.3%
2nd place: Cross-border logistics cooperation and development for China 55.7%
to reduce logistics costs
3rd place: facilitating and promoting tourism together with preventive measures, 55.4%
The covid-19 epidemic
4th place: Accelerating the publication of industrial product standards to prevent substandard products 51.4%

4. How should the industrial sector prepare themselves to cope with the opening of China? (Multiple choices)
1st Place: Business model adaptation Applying technology to reduce business costs 63.2%
to maintain competitiveness
2nd place: Prepare a support plan to maintain the current export market. after China returned 57.5%
expanding exports after opening up the country
3rd place: developing products and services to meet international standards together with caring for the environment 55.7%
4th place: Accelerating the expansion of the market for goods and services to China during the period when Chinese demand increased by 46.8%.

5. From the situation of the COVID-19 epidemic in China, do you have concerns about the travel of Chinese tourists or not? (single choice)
1st place: No worries 65.4%
2nd place: 34.6% worried

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