Automobile manufacturing has traditionally played an important role in stimulating economic growth and development. Sustaining and increasing export production levels of autos and auto components remains pertinent for the potential growth of these industries. Automobile industry should be given to ways of increasing the size of domestic markets by implementing strategic regional trade agreements, making vehicles more affordable to average persons and at the same time increasing domestic production and employment levels in the industry. Greater investment inflows and enhancing support for technological innovation and R&D activities in the auto industry in the future are also essential.
The automobile policy helped Thailand to become major automobile hub in Asia. The policy has helped countries to move from assembling stage to production stage. Mainly driven by Japanese FDI, the facilities have been used by MNCs to export vehicles and components to other countries. Most of the global automobile giants are present in Thailand along with their legions of suppliers. Regional trade liberalization through AFTA is fuelling the export growth of Thailand. Trade agreements with Australia, India and discussions in APEC forums are also acting as key elements to increase the regional trade of automotive sector and Thailand is playing a significant role. Thailand is clearly specializing in full vehicles.
Thailand’s automotive industry helps to develop and strengthen Thailand
For more than 50 years, the Thai automotive industry has provided economic, technological, social and environmental benefits for the country.
Economic benefits: The value created by the Thai automotive industry accounts for 10% of Thailand’s GDP. Thailand is the world’s 6th largest exchange earner in automobiles and auto parts and will be among the world’s top 10 automotive production bases, given its 2012 production output. Accumulated automobile exports for 2012 are anticipated to more than one million units with total value of more than one trillion baht, comprised of automobile exports of 600 billion baht and auto part exports of 400 billion baht. The Thai automotive industry is the largest sector in terms of generating foreign income for the country and has developed a large and solid base of related local industries. Currently, Thailand has more than 2,500 manufacturing plants for vehicles, auto parts suppliers and related industries. So far during 2012, there have been applications for promotional privileges in the automotive segment, with a total value of 202,800 million baht, up 95% from last year.
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Automobile manufacturing has traditionally played an important role in stimulating economic growth and development. Sustaining and increasing export production levels of autos and auto components remains pertinent for the potential growth of these industries. Automobile industry should be given to ways of increasing the size of domestic markets by implementing strategic regional trade agreements, making vehicles more affordable to average persons and at the same time increasing domestic production and employment levels in the industry. Greater investment inflows and enhancing support for technological innovation and R&D activities in the auto industry in the future are also essential.
The automobile policy helped Thailand to become major automobile hub in Asia. The policy has helped countries to move from assembling stage to production stage. Mainly driven by Japanese FDI, the facilities have been used by MNCs to export vehicles and components to other countries. Most of the global automobile giants are present in Thailand along with their legions of suppliers. Regional trade liberalization through AFTA is fuelling the export growth of Thailand. Trade agreements with Australia, India and discussions in APEC forums are also acting as key elements to increase the regional trade of automotive sector and Thailand is playing a significant role. Thailand is clearly specializing in full vehicles.
Thailand’s automotive industry helps to develop and strengthen Thailand
For more than 50 years, the Thai automotive industry has provided economic, technological, social and environmental benefits for the country.
Economic benefits: The value created by the Thai automotive industry accounts for 10% of Thailand’s GDP. Thailand is the world’s 6th largest exchange earner in automobiles and auto parts and will be among the world’s top 10 automotive production bases, given its 2012 production output. Accumulated automobile exports for 2012 are anticipated to more than one million units with total value of more than one trillion baht, comprised of automobile exports of 600 billion baht and auto part exports of 400 billion baht. The Thai automotive industry is the largest sector in terms of generating foreign income for the country and has developed a large and solid base of related local industries. Currently, Thailand has more than 2,500 manufacturing plants for vehicles, auto parts suppliers and related industries. So far during 2012, there have been applications for promotional privileges in the automotive segment, with a total value of 202,800 million baht, up 95% from last year.
Find out more from UK Essays here: http://www.ukessays.com/essays/economics/overview-of-thailand-automobile-industry-economics-essay.php#ixzz3H3Rx5Es5
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