Thailand’s Deputy Prime Minister and Commerce Minister Phumtham Wechayachai convened with automotive sector representatives, with the aim of harnessing Free Trade Agreements (FTAs) to catapult Thailand’s auto exports, securing its role as a prime automotive production and export hub globally.
Discussions delved into strategies for operational cost reduction and export expansion pathways, spotlighting FTAs’ potential to unlock new export markets and boost Thai automotive products’ global competitiveness. Key topics included sourcing cost-effective raw materials and establishing strategic partnerships for Thai automotive enterprises, setting the stage for a more conducive business ecosystem.
The proactive stance of the Ministry of Commerce, with its trade-related units collaborating closely with the automotive industry, signals the government’s dedicated support for the sector’s growth and international reach.
Highlighting a critical gap, Suwat Supakandechakul, President of the Thai Automotive Industry Association, underscored the lack of a domestic auto brand despite Thailand’s stature among the top ten global auto manufacturers.
To elevate Thailand’s competitive advantage, Suwat advocated for Thai auto exports’ promotion via emerging FTAs, with a spotlight on the electric vehicle (EV) sector. The distinct requirements of the EV industry, such as goods origin regulations, demand specialized attention in FTA negotiations.
Suwat’s proposal extended to involving auto industry representatives in FTA discussions and called for governmental action to eliminate business hurdles, emphasizing the adoption of electronic systems for a more streamlined import and export permit process.
Thailand’s automotive production aims to sustain its trajectory, matching or surpassing the previous year’s 1.9 million manufactured automobiles. With an ambitious export target mirroring the 1.15 million units dispatched in 2023, the industry’s solid performance is underscored by a significant surge in automotive product exports, reaching 865 billion baht in 2023, up 12.96% from the prior year.
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