Large-scale retailers in Thailand are eyeing next year’s implementation of the ASEAN Economic Community (AEC) as a major growth opportunity. Relevant to the retail business, the AEC is expected to encompass a free flow of trade, as import duties for particular goods will be cut. It would also boost the number of foreign visitors in Thailand, strengthening the country’s position as a leading regional shopping hub.
In addition, improved infrastructure, transport facilities and airports in key Thai cities, as well as growing low cost travel options, are expected to increase inbound tourism from 25 million to 40 million people within the next five years. The high potential destination cities include Bangkok, Phuket, Pattaya, Hua Hin and Chiang Mai, among others.
Anticipating the opportunities, Central Group and The Mall are boosting their presence in the above locations, as well as expanding in border provinces. As reported in The Nation, Suthichart Chirathivat, vice chairman of the board of Central Group, commented that experienced local retailers enjoy competitive advantage over their foreign counterparts and the implementation of AEC will also allow major local retailers to expand into new markets in other ASEAN countries.
Mr. Chirathivat added that this was the right time for Central Group to expand its retail business abroad, especially in countries such as Vietnam and Indonesia.
