1 AIT Asian Institute of Technology

Supply chain of construction materials in border towns underthe impact of ASEAN Economic Community (AEC)

AuthorRun Sereyrath
Call NumberAIT Thesis no.CM-14-09
Subject(s)Construction industry--Cambodia
Construction industry--Thailand
Business logistics--Cambodia
Business logistics--Thailand
Asean Economic Community

NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Construction, Engineering and Infrastructure Management, School of Engineering and Technology
PublisherAsian Institute of Technology
Series StatementThesis ; no. CM-14-09
AbstractAssociation of South East Asian Nations has significantly evolved and focuses more on economic aspect which finally agreed to transform the block to ASEAN Economic Community (AEC). This paper investigates the practice of construction materials supply chain in the border town of Poipet after which the impact of this AEC is assessed by using qualitative approach and through case studies where researcher collected the primary and secondary data by interviews and documentations with the border agencies and the supply chain members form the importer to the construction projects level. The analysis start with transcribing the interviews then categorizing the data, unitizing the data, develop relationship before testing the relationship by using the pattern matching. Researcher found that the construction projects in the border town practice both domestic and cross border construction materials procurement depending on the projects’ characteristic. The projects are reluctant to procure cross border when the demand for the Thai product is perceived as not large enough while they face uncertainty with the import process and procedure. In reverse, projects choose international purchasing from Thailand when the owner demands for quality products while the purchaser is also very familiar with the import process and procedure. However, both procurement routes gain benefit from the AEC by the adaptation of 8 digit ASEAN Harmonized tariff Nomenclature, adaptation of Risk Management System, adaptation of Automated System for Custom Data, transit of transport trucks directly from Thailand to importer’s warehouse in Cambodia without transfer, capacity building for border clearance officials, reduction of tariff payment rate to 5%, improvement of road transport of National Road No.5 and relaxation of payment transaction constraint to the manufacturer. However, to gain more leverage from AEC, researcher recommends the government to promote more to the public about the AEC particularly producing and publicizing programs TV and radio about the concept of AEC while domestic distributors should conduct joint-venture and improve the delivery and customer service. Finally, the project level should have proper integrated material supply chain management system and learn about the reform in clearance process and procedure and expand the supplier sources to Thailand. This can help the purchaser to gain sufficient information of the cost and benefit of performing domestic and cross border procurement after which they can make a better decision.
Year2014
Corresponding Series Added EntryAsian Institute of Technology. Thesis ; no. CM-14-09
TypeThesis
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Civil and Infrastucture Engineering (DCIE)
Academic Program/FoSConstruction Engineering and Infrastructure Management (CM)
Chairperson(s)Chotchai Charoenngam;
Examination Committee(s)Hadikusumo, Bonaventura H.W.;Santoso, Djoen San;
Scholarship Donor(s)Asian Institute of Technology Fellowship;
DegreeThesis (M. Eng.) - Asian Institute of Technology, 2014


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