China-ASEAN Free Trade Area: New Motivation Raises New Thinking

From the sheet metal painting workshop, the adsorption molding workshop to the accessory assembly workshop, the trademarks and products are still familiar, and the explanations of the factory leaders are very cordial, but the workers on the front line only speak Thai, because this is the Chinese electrical appliance company Haier Group. A factory in Thailand, located in Prachinburi, 200 kilometers east of the capital Bangkok.

The Free Trade Zone has benefited Thai companies in China as a former factory opened by Haier Group in Thailand. The acquisition of the factory in 2007 made Haier the second largest refrigerator manufacturer in Thailand. Ding Gaofeng, director of factory manufacturing, told reporters that with the completion of the China-ASEAN Free Trade Area and the gradual implementation of various free trade policies at the beginning of this year, more and more Chinese home appliances will enter Thailand.

The China-ASEAN Free Trade Area was completed on January 1, 2010. The free trade zone has a population of 1.9 billion, close to $6 trillion in annual gross domestic product and $4.5 trillion in annual trade.

When talking about the establishment of the free trade zone will bring immediate benefits to the factory, Ding Gaofeng showed the reporter two samples of the refrigerator, one black and one white, and the appearance is fashionable. “These two refrigerators are designed and developed by our factory. They use the air-cooled refrigeration technology that is relatively mature in Thailand and relatively rare in China. It is very popular in the Japanese market. In fact, many consumers in China like to use air-cooled refrigeration. Refrigerators, but in the domestic market, such refrigerators are rarely seen, so we are ready to sell them back to the country.” He said that after the completion of the free trade zone, Thailand’s home appliances are sold to China to enjoy zero tariffs and reduce The cost of returning the product, thus achieving technological advantages, complementary product advantages and market resource sharing.

Wu Yong, general manager of Haier Electric (Thailand) Co., Ltd. told reporters that the gradual advancement of the China-ASEAN Free Trade Area in the past few years has facilitated the expansion of trade and business between the two companies. “Although the Free Trade Zone was officially completed on January 1 this year, as early as a few years ago, our factory in Thailand purchased spare parts from China and it was zero tariff.”

Wu Yong said that the official arrival of the free trade zone era means not only the gradual elimination of trade barriers, but also the opening of services, investment and policy. At present, Haier's localized production and research and development in Thailand has established a firm foothold. In the future, it will use this as a base to expand the markets of other ASEAN countries by taking advantage of the advantages of the ASEAN internal free trade zone. Indonesia, Vietnam and the Philippines will be Haier Electric ( Thailand) The company's initial focus.

Wu Yong said that after the acquisition of the Thai factory, Haier has been able to design and produce according to the Thai lifestyle. According to the capacity design, Haier will become the leading manufacturer of large refrigerators in Thailand in 2010.