Thai leather companies ‘unprepared’ for changes in trade rules
28/09/2012
Firms dealing with leather, wood, rubber-wood products and rice are particularly unprepared, with all those surveyed in the leather industry saying they have not adjusted in any way.
Nearly 90% of wood businesses and 86% of ceramics and rice SMEs said the same, reported the Bangkok Post.
According to the survey, 42% of respondents said they were waiting for the government's assistance measures, 30% had not received any information about trade liberalisation and 18% lacked the capital to develop their businesses.
Att Pisarnvanich, director of the centre, said: "If businesses cannot adjust, they will not be able to find new marketing channels, which will lead them to lose market share while products from companies in other Asean countries whose governments support them will flow into Thailand.”
Separately, the logistics director of Swedish footwear company Ecco has warned of the importance of contingency plans at a conference in Thailand after 35% of the company’s global production was affected by flooding last year.
Ecco’s factory and tannery in Saha Rattana Nakorn Industrial Estate, Ayutthaya, was temporarily closed and production moved its factories elsewhere.
René Jessen said Ecco paid its workers while the factory was closed to avoid losing experienced staff, and managed to achieve growth in 2011 despite the catastrophe.
He encouraged companies to learn from the example and draw up contingency plans to protect themselves against natural disasters.
Share this story:
