The embassy of Thailand in UAE recently organised a trip to Thailand to apprise importer about prospects for Thai exports to the international market. The touring party included UAE importers of Thai products and Somsakdi Suriyawongse, Thailand ambassador to UAE.
Soon after reaching Bangkok, the party was taken to the Thai home products show - OTOP or One Tamboon (village) One Product exhibition.
The show was inaugurated by the Thai deputy commerce minister, Suriya Larpwisuthisin. Around 1800 companies participated in the show and a large number of local and foreign buyers attended the show.
On the occasion the minister said: "Thai home-made products are fast entering the international market and earning valuable foreign exchange for the country." He said these products are winning more and more buyers in European and South Asian markets. The show, part of Bangkok International Gift Fair and Bangkok International Houseware Fair 2205 (BIG& BIH), was organised to promote Thailand's souvenir, home appliances and hardware products. The biggest highlight of the show was the design hall where top design products were displayed. Around 2500 booths were displaying products from over 1000 firms. Visitors at the show were of the view that the products show different trends in Thai handicraft industry and attract those who have interest in hand-made products. Most of the buyers were attracted to these products due to their quality, but prices, according to them, were rather high.
Lajy C. George, a UAE importer, told this correspondent that "no doubt, some products at the show are quality products and new for the UAE market but price is a factor which needs negotiation." He said consumers in any market go for affordable prices and prices of OTOP products are rather high. Since the UAE is a centre of international trading, so any importer and trader has to keep the price factor in mind. If other countries offer products close to Thai products cheaper, then I fear consumer will go for the cheap ones, he added. He said he is in talks with 10 companies and if price is negotiated, a deal would be made. Almost the same view was expressed by another UAE importer, who requested not to be named.
After Bangkok, the party reached Chiang Mai and stayed overnight. The next day they were taken to a shop, which displays home-made Thai products. After that they went to Lampang province, where they were taken to a ceramic factory and were shown different sections and production process of the factory. The governor of Lampang province, Amornthat Niratisayakul, hosted a dinner for the touring party. Talking to Khaleej Times, he said: "Lamphang is now a home to 300 ceramic factories. Our production totals $87.5 million per year and we plan to double it by 2012. Sixty five per cent of the production is exported, mainly to Europe, US and Japan. About 40 per cent of our export goes to Europe ($23-25 million). Having achieved considerable success in the US, Europe and Japan, we are now trying to expand to the Middle East, South Asia, Australia and Eastern Europe.
"In 2004, a trade mission led by the Governor of Lamphang visited the UAE to explore the market and promote our products. Previously, our exports to the UAE was around $200,000 but increased to $400,000 - $500,000 last year. Our products in the UAE market are high quality products and target mainly medium to upper markets," he added. "Our exports to the Gulf the region are still small and mostly consist of ceramic and handicraft products. However, we aim to continue to increase our exports to the Middle East market, especially the UAE in the coming years.
"We plan to visit the UAE again and will participate in the trade exhibition held there to establish a long term business relation with the UAE," he added.
Somsakdi Suriyawongse, Thailand's ambassador to the UAE, said his government realises the potential of the UAE market as it has not only great infrastructure but a very big buyers' base. "People from different countries live in the UAE and most of them are of Asian origin and prefer to buy things from other countries. Middle East is a big export market for Thailand and since UAE is a very dynamic market in the region, the Thai government is focusing on this market. Last year, total Thai exports to this market were around $1 billion and it is expected that this figure will go up by 30 per cent this year," he added. He further said that 40 per cent of the Thai exports to this market are re exported. "That is why we are trying to organise more trade shows in this country to promote our exports here. We are planning to organise a food and fruit show in Abu Dhabi soon and are aiming to organise a solo Thai products show during October in Dubai. Besides that Thai firms will take part in all other trade shows in the UAE." About the performance of Thai firms in this market, The ambassador said that Thai real estate sector is also gaining from this market and finding potential buyers to invest in the Thai real estate sector.
A major Thai cement firm, Siam Cement, is doing good business here and more Thai construction firms are coming to this market. To a question, he said Thai textile industry is fast developing and Bangkok is turning into a 'city of fashion'. Last year, Thailand exported $100 million worth of products to the UAE. Besides that, leather goods from his country are also gaining a bigger share in the market. He said the main export items from his country comprise vehicle parts, TV parts, ACs, jewellery and plastic products.
By Hasan Javaid
© Khaleej Times 2005
