The privately owned company, IDS Enterprise Systems, which specialises in automotive logistics software, has set up a sales and support operation in Bangkok which it hopes will act as a spring-board into other Asia-Pacific Economic Cooperation (APEC) markets.
The company's chief executive officer, Gordon Towell, says the Thai market is nothing to be sneezed at. "It's a huge opportunity. The local [Thai] market is very strong... and it allows us access to all the other APEC countries," he told ZDNet Australia.
Some APEC countries would rather do business with a country with an established presence in Thailand than with an Australia-based company, he said. According to Towell, the decision to expand into Thailand was a no-brainer -- the 25 percent tariff on software had been a barrier to entry, and the agreement also makes moving money around and people around a lot easier.
"The tariffs basically disappear on our product," he said. "Repatriation of profits is important, as is free movement of our people."
Although he recognises corruption as a problem for foreign companies in South East Asian markets, Towell says Thailand is a relatively clean environment. "It's an issue throughout the region, but Thailand is less so than others," he said. "It's just a fact of life out there."
"We felt Thailand offered the best package of political stability, and the friendliness of the local population... We wanted stability, a tariff free environment as much as possible and an educated, hard working workforce," he added.
Describing the FTA as an "open secret", Towell says IDS has worked with Austrade, a government body established to assist Australian companies in doing business overseas, in making the move. He expects the privately owned company will achieve revenue growth of "tens of millions" of dollars through the expansion.
