China’s Ningxia Hui Autonomous Region has officially opened its Ningxia Distribution Centre in Hat Yai, the commercial district of Thailand’s southern province of Songkhla, as a venue for more accessible sales distribution to wider markets by presenting the region’s trade goods--including halal food products--and other commodities for exchange between the two countries.

As Thai businessmen foresaw that it would be good for Thailand to use proactive marketing strategies in gaining more access to the Chinese market thanks to its high purchasing power, two years ago representatives from Thailand’s Commerce Ministry and the Southern Border Province Administration Centre (SBPAC) visited and opened a distribution centre for Thai goods in the Ningxia region.

In the past year, Thailand exported rubber valued at some US$10 million to Ningxia, and imported merchandise from the region valued at around US$25 million.

The Ningxia Distribution Centre in Hat Yai shows the good relations between both countries and provides Thai entrepreneurs opportunities to showcase their merchandise and exchange their goods to Chinese entrepreneurs.

“China and Thailand have had good relations for 36 years, particularly in terms of trade. We’re hoping to expand our relationship through more commerce as well as other types of cooperation,” said Deng Kuang, deputy director-general of Ningxia’s Department of Commerce.

Kuang said that cooperation in various kinds will help strengthen the economies of both countries.

Located at Permsub Market in Hat Yai district, the Ningxia Distribution Centre aims at opening a new market space in southern Thailand and acting as a channel to distribute merchandise to the 10-member Association of Southeast Asian Nations (ASEAN).

As Ningxia’s Hui Muslim minority population makes up over one-third of the region’s population, the more than one hundred commodities on display in Hat Yai include halal beef, lamb and mutton, as well as Chinese herbs and Ningxia’s famous fruits, especially grapes and Chinese dates.

Meanwhile, China expressed its intention to import Thai agricultural products, including para rubber and fruit for resale in its markets.

Somkij Anantamek, chairman of the Southern Thai Chamber of Commerce, said the objective of the distribution centres was the increases in Thai produce’s export sales.

“From now on, each province will have to develop its fruit quality for export. If we can export our produce to China without a problem, then we can do it to other countries as well,” said Somkij.

And not only are Thai fruits and processed goods of interest to the Chinese people, as said by Surachai Chitpakdeebodin, chairman of Songkhla Chamber of Commerce, frozen food, which Thailand has a lot to offer, is another type of commodities the Chinese want.

“As Thai frozen foods are produced to Muslim halal standards, I believe it would not be so difficult for us to earn as much as hundreds of million baht from exporting such the product,” said Surachai.

Although business between Thailand and Ningxia seems vibrant and promising, shipping problems are obstacles for agricultural produce in spite of long order lists for Thai goods from China. Now it is a matter for the Thai government and related agencies as to how fast the problem can be solved so Thailand can see a bright future in this activity of commerce and trade. (TNA)