Aec: Opportunity or Threat to the Workforce of Thailand
Introduction
The ASEAN agreement to implement the ASEAN Economic Community (AEC) in 2015 is a rational approach in order to be the largest economic development in the developing world (Asian Development Bank (ADB) 2010; Austria 2012). However, it seems likely to have both beneficial and negative aspects. Although a GDP per capita of Thailand is in the fourth rank among ASEAN countries, competitiveness of its workforce may be insufficient to compete with others (Deutsche Bank 2013; Chongphaisal 2011).
The free flow of skilled labor and investment in the AEC policy can bring opportunities and threats to the Thai workforce. The former can lead to a chance for Thai workers to work in other ASEAN countries. The latter can bring about production bases that may create job placements and decrease the Thai unemployment rate. However, there are many threats for the Thai workforce such as a lack of English proficiency, inadequate education, low productivity of the Thai workforce and cultural barriers.
This study will analyse the external factors affecting the Thai workforce, estimate their competency and recommend effective ways to enhance their performance by evaluating AEC literature, AEC information of the Thai government and private sector, and AEC news bulletins.
Definition of Regional Integration
Balassa (1967), the Hungarian economist, concludes that economic communities lead to a decrease of trade barriers and an increase of beneficial economic aspects. Due to free mobility of economic factors between countries, international general markets spontaneously create demand for additional unification in terms of politics. Additionally, Luo (2008) says that economic community depends on reciprocity between members by sharing their resources. The community cannot exist if one alliance bows out.
AEC Background
Ten members of the ASEAN unanimously decided to establish the AEC by 2015. A single market and production base of the AEC will bring about free flow of goods,
The ASEAN agreement to implement the ASEAN Economic Community (AEC) in 2015 is a rational approach in order to be the largest economic development in the developing world (Asian Development Bank (ADB) 2010; Austria 2012). However, it seems likely to have both beneficial and negative aspects. Although a GDP per capita of Thailand is in the fourth rank among ASEAN countries, competitiveness of its workforce may be insufficient to compete with others (Deutsche Bank 2013; Chongphaisal 2011).
The free flow of skilled labor and investment in the AEC policy can bring opportunities and threats to the Thai workforce. The former can lead to a chance for Thai workers to work in other ASEAN countries. The latter can bring about production bases that may create job placements and decrease the Thai unemployment rate. However, there are many threats for the Thai workforce such as a lack of English proficiency, inadequate education, low productivity of the Thai workforce and cultural barriers.
This study will analyse the external factors affecting the Thai workforce, estimate their competency and recommend effective ways to enhance their performance by evaluating AEC literature, AEC information of the Thai government and private sector, and AEC news bulletins.
Definition of Regional Integration
Balassa (1967), the Hungarian economist, concludes that economic communities lead to a decrease of trade barriers and an increase of beneficial economic aspects. Due to free mobility of economic factors between countries, international general markets spontaneously create demand for additional unification in terms of politics. Additionally, Luo (2008) says that economic community depends on reciprocity between members by sharing their resources. The community cannot exist if one alliance bows out.
AEC Background
Ten members of the ASEAN unanimously decided to establish the AEC by 2015. A single market and production base of the AEC will bring about free flow of goods,