He Effect on Thai Frozen Shrimp Industry After Aec Implementation

The Effect on Thai Frozen Shrimp Industry after AEC Implementation

ABSTRACT

As the AEC implementation is coming close to take effect, all the country members must adjust themselves to the change of business environment. We are talking about the new rules of running business, new perspective of directing the business, larger market and demand of products. Under the concept of the AEC which is “One Vision, one identity, one community”, there are a lot of changes that need to be explored and scrutinized very carefully. It is obvious that with the new opportunities arise from the implementation of the AEC there will always be the adverse downsize effects. Being one of the members of ASEAN, Thailand is no exception to adapt itself to the change and the challenge of the new way of doing business. Aside to the preparation of the government sector to the introduction of AEC in late 2015, private sector must also prepare itself to this challenge as well. This piece of study will only specifically focus on one of the country’s major business which has been generated vast income to the country for the past decades. The author wishes it will be useful for the current frozen shrimp entrepreneurs to study and adjust themselves to the changes.

INTRODUCTION

1. Development of AEC

AEC was evolved from the original establishment of ASEAN (The Association of the South East Asian Nation) under the agreement of the Bangkok Declaration on August 8, 1977 with the 5 founder members namely Indonesia, Malaysia, the Philippines, Singapore and Thailand. Eventually 4 more countries which are Brunei, Laos, Myanmar and Vietnam joined the group. Cambodia is the last member that includes in AEC in 1999 and that makes the ten-member economic group with the population of 600 million people and more than 1.6 trillion dollars in international trade.

One of the three main objectives of ASEAN is the establishment of AEC which after the ASEAN charter signed and acknowledged by the members...