Auto-makers want Thailand to become regional production centre for large trucks

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INVESTMENT
Auto-makers want Thailand to become regional production centre for large trucks
Petchanet Pratruangkrai
The Nation

BANGKOK: -- Auto companies want the government to promote investment in Thailand with a view to making it the regional centre for large-truck production, given rising demand in neighbouring countries.

Nuntawan Sakuntanaga, director-general of the International Trade Promotion Department, said her agency would soon outline a concrete plan for submission within the Commerce Ministry, and then to the Cabinet.

After listening to comments from businesses in the sector, the department found that auto-makers would like the government to promote Thailand not only as a centre of eco-car production or sophisticated hi-tech industries, but also as a manufacturing centre for large trucks of 2 to 5 tonnes, as they see great potential for export growth in the segment, she said.

Thailand is currently known as a centre for one tonne pickup-truck production. However, with high demand in many Asean markets, the country should also promote investment in large-truck manufacturing, said Nuntawan.

The main countries witnessing higher demand for the import of one tonne pickups as well as larger trucks are Myanmar, Cambodia, Laos, Vietnam and Indonesia, all of which have emerging economic growth and are expanding their infrastructure investment, she explained.

Thailand, meanwhile, also needs to import heavy trucks to meet demand under the government's infrastructure development project.

Following market integration under the Asean Economic Community at the end of this year, regional demand for large trucks is projected to triple within three years, she added.

The official also said that investor nations such as Japan and a number of European countries were now considering whether to invest in large-truck manufacturing in Asean, with Thailand, Malaysia, Indonesia and Vietnam among their main options.

To promote Thailand as an investment and export base for such production, the government should consider providing Board of Investment incentives for foreign makers, said a representative from the Thai Auto Industry Club of the Federation of Thai Industries.

The source urged the International Trade Promotion Department to cooperate with other government agencies and get a coordinated, concrete plan to the Cabinet as soon as possible.

Other strategies that the auto industry has urged the government to pursue in order to facilitate more export growth include continuing free-trade talks with the European Union; ensuring stability in the value of the baht and seeing that it moves in line with the currencies of export rivals; helping to reduce production costs by lowering tariffs for machinery imports; and establishing a high-standard automobile testing centre in the country.

Source: http://www.nationmultimedia.com/business/Auto-makers-want-Thailand-to-become-regional-produ-30259366.html


-- The Nation 2015-05-06

[pmugghc]

But..but...but we all know the Thais are lazy and unreliable, the Thai baht overvalued, you can't drive here due to the traffic, all foreigners are moving their factories to Vietnam,....

At least according to the experts on TVF!

Edited May 6, 2015 by pmugghc

[BSJ]

"a manufacturing centre for large trucks of 2 to 5 tonnes" They are small trucks and I thought Hino, Isuzu already make small trucks here in Thailand with Mitsubishi doing assembly.

Export would require some sort of tax offsets for the too high baht.

[NeverSure]

But..but...but we all know the Thais are lazy and unreliable, the Thai baht overvalued, you can't drive here due to the traffic, all foreigners are moving their factories to Vietnam,....

At least according to the experts on TVF!

This is typical Thai lingo without substance.

1. The headline says that the manufacturers want.

2. But the actual article says that Thailand wants.

[Just1Voice]

Keep in mind, these are statements being made by Thai, with no actual manufacturer coming forth to verify what's being said. So I wouldn't get too excited until the companies themselves actually step forward to support the Thai statements.

[jerojero]

Auto makers want. Which ones, when where? Give them more handouts? Auto makers already have the advantage of paying workers mere pittance, $10 a day. They want more? Take a hike, I say!

Edited May 6, 2015 by jerojero

[zaphod reborn]

"Nuntawan Sakuntanaga, director-general of the International Trade Promotion Department, said her agency would soon outline a concrete plan for submission within the Commerce Ministry, and then to the Cabinet."

If Thailand really wants to encourage foreign investment in commercial truck manufacturing, it needs to reform its foreign investment act, eliminate tariffs on the import of parts for manufacturing trucks, ease restrictions and red-tape on bringing in foreign experts and provide guarantees about not raising minimum wage. Otherwise, this investment is going to Indonesia and Vietnam.

[soalbundy]

Hope they don't get the job of making the brakes, they keep failing here.

[Praematura]

I need to get what the OP is smoking.

Japanese brands have approximately 90% of the automotive market. Yet some are moving manufacturing to Indonesia.

http://indianautosblog.com/2013/12/toyota-moving-production-from-thailand-to-indonesia-110199

[elgordo38]

But..but...but we all know the Thais are lazy and unreliable, the Thai baht overvalued, you can't drive here due to the traffic, all foreigners are moving their factories to Vietnam,....

At least according to the experts on TVF!

The government is always placing a positive spin on news articles. Not just here everywhere in the world. In some cases governments would not know the truth if they stumbled over it. We have been fed a steady stream of lies for years, inflation numbers, cost of living, unemployment numbers, GDP its all been tweeked over the years by governments to get the numbers to read what they want. Get out and vote in the next election but I fear you have nothing to choose from its all controlled voters included. We are like cattle going down an ever narrowing cattle chute at a slaughtering plant. Well at least the NDP have taken Alberta now lets see the Liberals do the same in October. But again a politician is a politician is a politician.

[elgordo38]

But..but...but we all know the Thais are lazy and unreliable, the Thai baht overvalued, you can't drive here due to the traffic, all foreigners are moving their factories to Vietnam,....

At least according to the experts on TVF!

One word sums it up "Propaganda"

[Doc46]

But..but...but we all know the Thais are lazy and unreliable, the Thai baht overvalued, you can't drive here due to the traffic, all foreigners are moving their factories to Vietnam,....

At least according to the experts on TVF!

You mean people that call themselves experts? doesn't mean anything in my book. the truth will be revealed.