Exporters drive growth - of online business in Thailand - Brief Article

Business Asia, April 14, 2000

Exporters' efforts to reduce production costs will be the key factor driving on-line business growth in Thailand, an Internet consultant claims.

Peter Walker, Bangkok-based principal of A.T. Kearney, said on-line trading among export-related firms would account for up to 60 per cent of Thailand's total annual export businesses within a year.

"There is no doubt about it that business-to-business (electronic commerce) is going to be massive," Walker said. "Within a year, (on-line trading) is going to be 50 (to) 60 per cent of all export business."

Thailand expects its exports to reach US$62 billion in 2000, up more than 7 per cent from US$58.51 billion in 1999.

Walker said multinational corporations, especially car and electronics firms, would take a lead in driving "e-business enabled export transactions", searching for the lowest cost raw materials and components.

"E-procurement is one area where many organisations try to look for opportunity to reduce costs," he said.

Walker hailed the Thai government's initiatives to facilitate electronic imports and exports, which he said were a boon to the growth of e-commerce in Thailand.