25/11/2009 (The Nation) - Thailand is at risk of losing out on the benefits from the formation of the Asean Economic Community (AEC) in 2015, as most enterprises are still unaware of the advantages and challenges of regional integration.

A survey by the University of the Thai Chamber of Commerce's (UTCC) Centre for International Trade Studies released yesterday showed that almost 90 per cent of respondents across all 76 provinces did not understand integration and the benefits to be gained under the AEC.

"The lack of knowledge about the AEC will create losses for Thai enterprises, as they do not yet know what is the impact of or advantages they could obtain from the AEC," said the centre's director, Aat Pisanwanich.

According to the centre, the production sectors that will be the hardest hit if they fail to increase their awareness of the implications of integration and adjust accordingly are rice, palm oil, coffee, petrochemicals and steel, as well as logistics and telecommunications in the services sector.

The 10 member states of Asean have committed themselves to forming a single market allowing the free flow of trade in goods, services and labour by 2015.

If Thai enterprises have not adapted to the market's liberalisation, many will find themselves forced out of business due to the tough competition from firms in other Asean countries, Aat said.

To rectify this problem, the centre suggested the government should educate enterprises in each province about the implications of integration and liberalisation.

The government must make its public relations strategies more effective in this respect, as the current approach is not efficient enough to increase'enterprises' awareness, it said.

Enterprises in the eastern and western parts of the country have the least knowledge about the AEC, the UTCC centre found.

Based on a survey of 180 respondents across all provinces, 46.5 per cent have had to retrieve information about the AEC by themselves, while 39.5 per cent said they had received information about integration via the Thai Chamber of Commerce and only 14 per cent received information from government agencies.

Companies want the government to organise more seminars and meetings about the AEC to educate businesses upcountry.

Aat said that although the idea of an AEC had been around for many years, no government had educated the public and the business sector about the issue.

He said the government must not only set up a financial-support budget to help enterprises adjust ahead of the AEC over the next five years, but it should also increase its efficiency in developing business growth.

Phongsak Assakul, vice chairman of the Thai Chamber of Commerce, said the Kingdom was at risk of losing competitiveness, as most enterprises still do not understand the AEC.

"Surprisingly, Thai enterprises lack the knowledge to obtain benefits from the AEC, as well as to adjust themselves for market liberalisation. The government must urgently solve this problem. Thai businesses could be wiped out by the AEC wave as soon as integration takes place in a few years from now," he said.