Thai businesses operating in fields such as retailing, hospitality, restaurants, spas, tour companies, logistics and education are set to benefit most from the ASEAN FTA negotiations. There has been an ongoing Asean-China Free Trade Area negotiations to liberalize the service sectors. China’s service sector, which grew 7.4% in the first quarter of 2009 with a total value of 29 billion yuan, offers a potential market for many Thai firms. Despite slowing economic growth, the Chinese service sector is likely to improve during the second half, due to government measures to stimulate the economy and domestic purchasing power. Furthermore, in the longer term, the sector will benefit from the growing income of both urban and rural populations, as well as the national development plan, which aims to raise the service sector’s contribution to the economy from 40% to 50% by 2020.
The China-ASEAN FTA is expected to benefit Thai businesses enabling them to tap the potential of China’s expanding market, reported the Bangkok Post newspaper. In addition to being a tourism hub, Thai spas, with their medicinal herbs and natural products, are among the service industries with high potential to expand into China. The FTA has relaxed regulations on investing in China’s service sector, which includes these sectors. Thai entrepreneurs will also be more able to expand their businesses to China after the completion of the second round of negotiations, which is expected to open up 12 more service industries.
At the same time, Chinese investors will gain from the FTA agreements as they are likely to expand their businesses in Thailand, for example: investment in Thai construction and shipping.
Thai businesses operating in fields such as retailing, hospitality, restaurants, spas, tour companies, logistics and education are set to benefit most from the ASEAN FTA negotiations. There has been an ongoing Asean-China Free Trade Area negotiations to liberalize the service sectors. China’s service sector, which grew 7.4% in the first quarter of 2009 with a total value of 29 billion yuan, offers a potential market for many Thai firms. Despite slowing economic growth, the Chinese service sector is likely to improve during the second half, due to government measures to stimulate the economy and domestic purchasing power. Furthermore, in the longer term, the sector will benefit from the growing income of both urban and rural populations, as well as the national development plan, which aims to raise the service sector’s contribution to the economy from 40% to 50% by 2020.
The China-ASEAN FTA is expected to benefit Thai businesses enabling them to tap the potential of China’s expanding market, reported the Bangkok Post newspaper. In addition to being a tourism hub, Thai spas, with their medicinal herbs and natural products, are among the service industries with high potential to expand into China. The FTA has relaxed regulations on investing in China’s service sector, which includes these sectors. Thai entrepreneurs will also be more able to expand their businesses to China after the completion of the second round of negotiations, which is expected to open up 12 more service industries.
At the same time, Chinese investors will gain from the FTA agreements as they are likely to expand their businesses in Thailand, for example: investment in Thai construction and shipping.
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