The upcoming Asean integration will be a real challenge for many industries, but in Thailand's packaging industry a price war among local producers is the main threat.
Tatthep Teeyaprechaya, the managing director of Universal Can Co, said competition in the packaging industry is growing intense in terms of pricing among local players.
"The addition of foreign competitors once the Asean Economic Community takes place has never been a concern. We are confident we're among the best packaging producers in the world," said Mr Tatthep.
"However, a fierce pricing war can cause producers to lower product quality, enabling competitors from Malaysia, Singapore, China and Vietnam to challenge us."
Kriengkrai Thiennukul, a vice-chairman of the Federation of Thai Industries (FTI), said orders and prices are settled one year in advance, meaning volatility risk from material prices falls on suppliers alone.
"If we battle among ourselves on pricing, our competitiveness will be weakened," said Mr Kriengkrai.
Increasing logistics costs is also a concern.
Mr Kriengkrai hopes the government's 2-trillion-baht investment in infrastructure projects will help to reduce logistics costs as well as loss from damage.
Thailand is the biggest supplier of paper packaging products in Asean at an estimated 60 billion baht a year. Thai products have a 60-70% market share in Asia.
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Writer: Sarissa Indhakanok