aec advantage and disadvangtage article
high & bao
1 . The positive impact of AEC to Thailand is that it helps to facilitate investment and trading activities in other ASEAN members as it is today more widely and less difficult. We can spend money on any ASEAN countries and there will be much less barriers with regards to trading actions. Moreover, Asia will become the middle of vehicles and travel, as Asia is located in the center of ASEAN. This will help travel and leisure industry increase bigger. Asia can also be the center of nationwide conferences, gatherings, exhibitions, and telecommunication.
Furthermore, AEC helps Thai suppliers reduce the cost of production because they can delegate cheaper unprocessed trash from ASEAN members. AEC also helps increase the opportunities of investment as money is definitely flowing amongst ASEAN people
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installment payments on your AEC goes along with the railways creation projects which will connect the higher Mekong Sub-region, ie. East-West Economic Corridor-connecting Vietnam, Laos, Thailand, Myanmar; North-South Monetary Corridor-connectingThailand, Myanmar/Laos, and China and tiawan and; The southern part of Economic Corridor-connecting Thailand, Cambodia, and Vietnam.
The Southern Financial Corridor includes a connecting route further to Dawei Deep Sea Dock in Myanmar that can distribute products to the Middle East and European countries. This will reduce the logistic cost of Asia that rely smuch in expensive road transportation.
a few. In regarding 2 years, we will be a part of AEC which we should prepare for this example. It is not just only market sector that need to prepare for the bigger industry and the bigger amount of competitors, but the small sector like logistic is also need to be improved to get along with the extreme competition intended for helping businesses survive from your easier activity of goods, service, investment, capital and people. When ever there is a free flow of goods, service, competent labor, and so on, the infrastructure also needs to become developed to serve all those inflows.
AEC would be a great challenge for supply sequence management to control the timing for delivering goods with increased comfortable facilities which is capable of reduce the expense of transportation too, and it is an excellent opportunity to boost the cross edge trade aide by simplified border procedures. Moreover, promoting the transportation among ASEAN countries PTT also began to set up gas stations at primary roads in lots of member countries already. This opportunity tends to generate plenty of income pertaining to our land as the high standard of PTT gas place and the well quality of service.
http://www.bangkokpost.com/business/economics/284257/strengthening-supply-chains-for-the-aec http://thainews.prd.go.th/centerweb/newsen/NewsDetail?NT01_NewsID=WNFOR5509140010001 “”””””””””””””””-
Negative effect of AEC on supply chain
1 . Whenever we become a component to AEC, it has a several adverse impacts for the supply string in Asia. Thai businesses need to grow both all their manufacture and inventory, in an order to produce and retail store more items to serve wider variety of customers. As a result, it will absolutely affect all their fixed price, and total cost of creation will then climb respectively. Besides, the extensive concentration on developing and products on hand can be problematic in that that places extra pressure within the environment, which were a clear evidence in unwelcome impacts upon important groups of the overall economy, such as travel and leisure.
installment payments on your AEC will cause in a wide range of labour activity and this can be an adverse impact on supply chain too. Of course , experienced labour will certainly move to the nation that offer these people a higher chance and bigger wage, such as Singapore and Malaysia. As the Thailänder skilled work move out, the foreign unskilled labour might move around in. The not skilled labour, who also may be even more wage competitive than the Thai worker, move around in. This brought on an downside in the market and Thai labour as well. As well, this might depress local market segments and reduce consumption of manufactured things.
Due to a various wider customers, it will be harder for the manufacture to succeed in economy of scale. Rather than just producing 1 goods to server household market, the firms might need to come up with many creative merchandise to server customers who also come from various country. This kind of also can enhance a cost of production intended for the organization. http://ejournal.som.siu.ac.th/files/1-2%20Sittichai.pdf
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Thailand has relatively high logistic cost to GDP (18%) when compared with Singapore (8%) and Malaysia (13%). For Thailand’s overall logistic cost, the share of transportation cost is the largest. Thailand may reduce its strategy to be the hub of ASEAN in the higher logistic cost comparing to additional AEC countries, such as Singapore and Malaysia, if Thailand’s logistic infrastructures, for example , railways and highways network that link AEC, haven’t been built completely in 2015.
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Some labor intensive industrial sectors may perish when AEC is totally integrated due to Thai bare minimum wage coverage. The bare minimum wage insurance plan will have an effect on everyone inside the supply string both straight and not directly. These businesses, just like food and beverage and vehicles and vehicle parts, will see higher costs pertaining to goods and services on the form of rising price of raw materials and logistics pushing through the source chain. Additionally, the good companies, which will survive, might leave Thailänder markets to find new stations to increase profits and counter profit erosion from increasing domestic costs. If many industries keep Thailand, the rest industries will leave also like domino is catagorized.