Thailand International Political Economy

French based Danone has announced it is considering Thailand as its hub for exporting to Singapore and to expand its market-share in Thailand according to the Bangkok Post.

A key driver of the move is the zero import tax the will take in effect in 2011 under the Asean Free Trade Area (AFTA).

Danone’s investment in Thailand of 572 million baht to open a production facility on Ayutthaya is expected to raise production capacity to 50,000 tons per year.

Danone is the world’s largest dairy product producer and is the number two cup yogurt market in the Thai market. In addition, the firm is expected to invest in Thailand 50 million baht to promote its Activia yogurt line over the next year.