Thailand’s Commerce Ministry is keen to adopt the Philippines’ business model for IT services and BPO.
According to Thailand Trade Policy Strategy Office director, Amparwon Pichalai, “The Philippines’ economy has relied more on the service sector, which is a successful business model for developing the economy. About 60 per cent of its gross domestic product is from service businesses and it helps increase people’s incomes.”
Multinational companies have continued investing in the Philippines as the country becomes one of the major hubs for information-technology service providers and BPO offshore outsourcing companies.
The key contributors to the growth of the Philippines economy are business process outsourcing contact centers and ITS’ software development. The Philippine government is prioritizing BPO support plans as it wants to improve the flow of foreign direct investment in the country. Companies are spreading across seven key cities such as Manila, Davao, Cebu, Laguna, Baguio, Bacolod and Iloilo to invest in IT business. Thai exporters will increase their chance to promote more shipments of food and beverages, consumer goods, construction materials, automobile and parts, clothing, jewelries and home items to those cities.
Pichalai stated that Thailand should not only rely on being an export center and a manufacturing hub but also concentrate more on improving its service businesses. Thailand will have a chance to become a center of the service business and investment by multinational companies by adopting the Philippines BPO model in improving its human resources.
Thailand is eager to develop businesses such as call centers, software development, healthcare information management, logistics, animation, tourism, hospitality and education. Amparwon said that Thailand should focus on improving language skills, particularly in English.
Data from Thailand Trade Policy Strategy Office show a 13.9 percent increase in Thai shipments to the Philippines within the first seven months of the year to US$3.14 billion, while the percentage of shipments to other ASEAN markets have declined.