Thailand should be at an overall advantage as a result of the Free Trade Agreement between China and ASEAN, which could lead to higher than expected economic growth if the domestic political situation remains stable.

This is the view of Dhanin Chearavanont, chairman and CEO of the country's biggest agribusiness conglomerate, the Charoen Pokphand Group.

Dhanin, who yesterday presided over the agreement signing ceremony between group subsidiary True Visions and leading Chinese media firm the Phoenix TV Group, said some business persons might think Thailand would be at a disadvantage in relation to China as a result of the FTA. But he remains optimistic the Kingdom can take the opportunity to penetrate China - the world's largest market with a population of 1.3 billion.

Import duties on 90 per cent of goods traded between China and Thailand have been reduced to zero since January 1.

While there are many products that have a good chance to be marketed in mainland China, some industries have lost competitiveness to the neighbouring giant. The government should therefore play its part in helping and encouraging these businesses compete in the world market, Dhanin said.

"I believe we have various products that can be exported to China and generate export revenue of about a Bt100 billion [annually]. The change [FTA] has created both advantages and disadvantages for our industries. The government should play a key role in adapt?ing the disadvantages into advantages," said Dhanin.

He said under the China-ASEAN FTA, many parties were interested in investing in Thailand, in order to penetrate the Chinese market [on a duty free basis]. But these investors lack confidence due to the Map Ta Phut problem and are unable to make the decision to invest in Thailand.

Therefore, the government should resolve the Map Ta Phut crisis as quickly as it can and make the country attractive for foreign investors again.

Besides, Thailand's financial status is stronger than it was during the 1997 financial crisis, as it has capital reserves of more than US$1 trillion (Bt33 trillion).

Meanwhile, local banks have combined deposits worth Bt10 trillion but have lent out only Bt6 trillion. So, there is roughly Bt4 trillion in the banking system to be released to investors.

"The prices of many agricultural products have increased. The livelihood of Thai agriculturists is also improving. The China-ASEAN FTA is a spring?board for the Thai economy to grow more than last year.

"So, Thailand is extremely advantaged by this agreement. If the political situation is stable, the country's gross domestic product could possibly grow 10 per cent [in future years]. For this year, GDP will absolutely be better than in 2009," Dhanin said.