Learn from the automotive industry of Thailand?

In 2012, the automobile industry contributed 10% of Thailand's GDP. The powerful magic of this industry is worth big lesson for any country in the world.

Featured Content: - Thai Automotive Industry started conceived from 1960 to 2012, Thailand became the largest automobile manufacturers in Southeast Asia, contributing 10% of national GDP. - Automotive industry in Thailand developed over five main stages from import car repair, vehicle assembly, vehicle parts manufacturing to R & D. - One of the factors that foreign investors can confidently invest in Thailand's automotive industry is the policy stability, facilitate market entry, such as tax incentives, tax exempt not only with industry production but also for research and development activities. The first car rolled down the streets of Thailand from around the 1900s thanks to the royal country of import. 60 years later, the automotive industry in Thailand egg formation and today number 1 ranked 9th ASEAN and the world with an output of 2.5 million vehicles were produced in 2013. In 2012, industry automobile industry contributed 10% of Thailand's GDP. The powerful magic of this industry is valuable lesson for any country in the world. Orientation clear the whole industry In 1960, the Thai government began to promulgate import substitution policies to promote the domestic auto industry. In 1961, the first automotive company founded called Anglo - Thai Motor was established on the basis of a joint venture between the British and Thai Ford Motor Industry, start local assembly. The consumer market is quite small this time with just over 3,200 buses and more than 520 different vehicles sold in 1961. Until 1970, local assemblers increased to over 10,600 vehicles. After 10 years, the number of Thai car assembly still account for half of the market. The year 70-80, the Thai government issued policies to promote domestic industrial assembly as increased import duty on CBU CBU 150% or CBU import ban in 1978. This makes the company domestic parts production increased while promoting the production of simple parts such as brakes, radiators, glass, .. By the 1990s, the market barriers are removed, the Thai automotive market starts to grow faster. The import ban under 2.3 liter car was lifted in 1991 that South Korea imported cars increased, the Japanese manufacturers in Thailand responded by cutting costs, launching a low cost car . After the 1997 crisis, Thailand issued regulations easing as manufacturers do not need foreign joint ventures with local partners in the country when this huge favor to produce fuel-efficient cars or cut corporate tax from 30% to 20%. From here, the Thai automotive industry began to break, and in 2012 became the largest car manufacturers in Southeast Asia. 3 the largest automobile manufacturer in Thailand include Toyota, Isuzu and Honda.

Growth in the automotive industry in Thailand 2007-2012. Overall, the automotive industry in Thailand developed through five main stages are: The first phase focuses on simple fix cars imported from abroad CBU CBU (Complete Build-up Unit). The second phase of the move to assemble from parts imported from abroad CKD (Completely Knocked Down). The third phase the industry shifted production of spare parts, focusing on the original equipment has low added value. The fourth phase continues localized production of spare parts, but was transferred to the original equipment manufacturing value added. The final stage , focusing on R & D activities (development and product design), with the objective of Thailand became the center of the automotive industry in the region. At present, Thailand has research centers of the largest automobile company in the world, such as Toyota, Honda, Isuzu, Nissan and Denso.

olicy is open to manufacturers To promote the automobile industry development, Thailand divided into three areas of priority areas: Zone 1, zone 2, zone 3.

For automotive manufacturers , the conditions for preferential treatment include: - Actual yield not less than 100,000 / year in any year during the first 5 years of operation. - All products must be based on the same platform is approved by the Ministry of Thai investors. - Total investment in the first 5 years of corporate tax exemption shall not be less than 15 billion baht, not including the cost of land and working capital. - Investment Plan for the manufacture of spare parts and components must be submitted and approved by the Ministry of investment. In turn manufacturers, automotive assembly will be obliged to import the machines regardless of region, now 5-year tax exemption and other benefits under Decision No. 1/2543 dated 01.08.2000. In 2012, Toyota was the manufacturer, the largest assembly in Thailand, accounting for 35% market share. For parts manufacturers , Thai policy clearly divided with 2 groups: normal parts and high-tech. The manufacturer parts are generally exempt import duty machinery, corporate tax exemption for the first 3 years, the second is 3-7 years, the 3 of 8 years. With manufacturers high tech parts such as ABS, air-conditioning systems for automotive, ... be exempt from import duties on machinery, and 8 years of corporate tax in all regions. Show industry support of Thailand to 709 companies and 1,700 company-level 1 level 2, level 3 employs about 100,000 people. The parts factory in Thailand also create employment for 450,000 people.

The policy supports excellence One of the factors that foreign investors can confidently invest in Thailand's automotive industry is the policy stability, facilitate market entry, such as tax incentives, tax exempt not only for manufacturing but also for research and development activities. The Thai government allows foreign investors to bring experts, engineers and employees in this country with flexible visa policy. Human resources in the automotive industry in Thailand has the highest skill compared to other countries in the region. To become the center of the largest automobile manufacturing sector, Thailand is not only well-developed policies and infrastructure for the input but also provides excellent infrastructure for the transport service. The transportation network in Thailand throughout the East-West, South-North, easily connected to other countries in the region, the international airport of Bangkok and Laem Chabang deep-sea port, the train system connecting facilities across the country. This makes the export stitching easier than ever.