Tag Archives: thailand

Get Real or Forfeit Your Place in the Sun

Expanding or moving business operations into Southeast Asia requires a deep understanding of the different emerging economies in the region. Navigating the political system, understanding consumer purchasing patterns, recognizing the dark horse that others overlook for investment, and finding the right local business partners are all important factors, as Chris Bruton, Director for Thailand and Indochina at Dataconsult, shared with us during the last official business meeting of the study abroad program.

Chris from Dataconsult

Of the 10 countries in the Association of Southeast Asian nations, the ASEAN 5 (Thailand, Cambodia, Laos, Myanmar, Vietnam) currently account for 1/4 of its GDP and roughly 39% of ASEAN’s population. Having seen first hand the rapid growth taking place in Ho Chi Minh City and Siem Reap, and the consumerism rapidly spreading throughout their respective countries, this put in perspective for me the great opportunity present in these developing economies.

Thailand leads, growth and infrastructure-wise, its sister countries in the ASEAN 5. It is considered a manufacturing center, especially for consumer goods, and an air transportation hub (Suvarnabhumi Airport handled 48 million passengers last year, just surpassing Singapore Changi Airport).  The flood, which tragically hit the country in October, actually created a promising infrastructure investment opportunity as $50B in damages presents a chance to build new state-of-the-art plants and facilities. In fact, Habitat for Humanity has been involved in the aid of post-flood rebuilding.

Doing business in Thailand is relatively easy for Americans. The Treaty of Amity and Economic Relations from 1966 allows U.S. and Thai companies’ equal economic access to one another’s markets. Thailand ranked 17th in the World Bank for ease of doing business but lacks adequate education programs to compete on a global scale (ranked 62 in the World Economic Forum, still significantly higher than the ASEAN 4). Thailand also ranks relatively low in political stability because, here, the caste system is still very much in practice. This means that everyone has a distinct place in society – Brahmin social elite, merchant class, peasant & worker class – and it is difficult, if not nearly impossible, to escape their rank. Improved education is the key both to overcoming these challenges and to long-term democracy.  As the boom in internet access spreads through Thailand and the ASEAN 4, knowledge spreads and dissatisfaction grows with current systems, as we’ve recently seen in other regions of the world.

After travelling to 3 of the 5 ASEAN nations, it does appears that Thailand is more “with it” than its neighbors. After learning from Chris for an hour, I would now attribute that to a recent history devoid of war, being more capital-intensive (rather than labor intensive), and possessing the factors which resulted in a higher WEF competitiveness ranking.

The other 4 nations in the ASEAN 5 rank low in ease of doing business (Vietnam ranks 98, Cambodia ranks 138, Laos ranks 165), competitiveness (Vietnam ranks 65, Cambodia ranks 97), and, as we had learned only days before, the education system in Vietnam and Cambodia are quite poor (Vietnam ranks 103, Cambodia ranks 120). Communist authoritarianism in Laos and Vietnam and endemic corruption in the region create substantial challenges for any business to run successfully. As we saw with businesses like Intel, helping the governments with policy formulation and follow through is necessary – these nations have poor records of carrying out newly created policies. My classmates and I learned at Fulbright that, in the case of Vietnam, reform is needed within the banking system as bank insolvency is one of the largest causes of the recent inflation of the dong.

Loyola has an international partnership with Harvard - the mission: to bring U.S. quality university programs to Vietnam.

Mr. Bruton mentioned that Myanmar is a dark horse in the region, showing a lot of potential. Largely ignored because of its relatively ”closed off” history to the rest of the world, it appears to be in a turning point politically. The country has a vast energy, mineral, and agricultural resource base, but like its neighbors, has huge challenges in infrastructure, bureaucracy, financing and labor.

Dr. Shultz thanking Mr. Bruton

During this incredible study abroad program, Dr. Shultz provided us a total immersion in the local customs, a unique exposure  to and perspective of international culture, and lessons of endlessly fantastic opportunity in a truly beautiful part of the world. I am forever grateful to him for the countless lessons he has bestowed upon me.

A Ride down the Chao Phraya River

After touring the Grand Palace, my classmates and I hopped onto a long-boat, crossed the river and had lunch at the amazing water front Supatra River House Restaurant. This was one of those Thai lunches you dream of…the cashew chicken…drool…

View of the Chao Phraya River from Supatra River House Restaurant

As we ate, we were suddenly graced with the presence of an American expat, Jeff, who acted as our “travel agent” of sorts for this trip. He once worked in the travel industry in the states and later started a business in Thailand when he realized that there was a lack of “custom travel agents” in this region of the world. Having the good sense to note that Americans don’t typically like to be herded onto buses and rushed around like many of the local travel and touring companies would have you do, he decided to specialize in creating that one of kind southeast Asia experience, complete with meals at the best restaurants and tours given by award-winning guides. All I know is that he is EXCELLENT at his job and hope I have the good fortune to use his services again.

After lunch, we boarded a river express boat to explore some of the klongs (canals) of the Chao Phraya River. Damage left from the October flooding can still be seen on  many of the wooden river-front houses.

Exploring the canals we saw schools, hospitals, temples, and homes on stilts lining the banks. I even spotted a vine that looked like Jesus!

Hallelujah!

There is an endless variety of things to see along this river – even huge, bread-eating catfish.

Cabbages…and Condoms

After a short 50 minute flight from Siem Reap to Bangkok, and riding on a really sweet and spacious bus to the Century Park Hotel to drop off our bags, a group of us headed to an optional dinner at a restaurant called Cabbages and Condoms.

Driving to the Century Park Hotel in Bangkok

Bangkok ended up being everything I expected and nothing I expected all at the same time. This restaurant is a prime example of what I mean by that.

The Population and Community Development Association (PDA), founded in 1974, works to promote family planning in urban and rural areas of Thailand, where knowledge of and access to such services have been scarce. The founder, Mr.Mechai Viravaidya, worked to attract media coverage to aid in changing his society’s values, particularly with respect to taboo subjects such as sex, contraception, and vasectomies.

Condom Santa

He theorized that cabbages are a common food in Thailand, grown in all villages and eaten by most Thais. If he was successful in making condoms as common and cheap as cabbages, then perhaps he could make some of the health problems facing Thailand disappear!

Safety People!

This unique spot at times requires a sense of humor and respect for the mission it serves. Some of the money paid for our meal goes towards supporting the work of the Population and Community Development Association and an on-site clinic even offers vasectomies! As a thank you, condoms are given with the bill instead of after dinner mints.

Condom Man

I anticipated Thailand to be the culinary delight of this trip, and I wasn’t disappointed – the pad see ew I had at Cabbages and Condoms could very well be the best I’ve ever had. And being half-way through my antibiotics, I had to skip the Thai beer, instead drinking a fresh fruit punch which was absolutely delicious.

Our table

The place may look tacky, but the service was fantastic, the food was fabulous and the mission of PDA is respectable. If you ever go to Bangkok, I HIGHLY recommend checking it out.