Academics have assessed that the recent flooding in Thailand will likely force foreign investors to shift their production bases to Indonesia in order to lower the risks as well as to be prepared for the ASEAN Economic Community (AEC).
During a seminar under the topic “Supply Chain in ASEAN,” a scholar from Thammasat University said Indonesia was reaping benefits from the shift of foreign investors’ production bases from Thailand to the island nation, given it had similar basic infrastructures as Thailand. With less investment in Thailand, entrepreneurs, especially SMEs, will be devoid of trade partners in the supply chain. To solve this problem, Thailand must increase the investment ratio in ASEAN to welcome the establishment of the AEC in 2015.
Meanwhile a representative from the Eastern Polymer Group said entrepreneurs must have a good risk management to handle unexpected natural disasters by moving their production bases to less-disaster prone areas, for example.