Thailand has become the first choice for tire giant plant

2015-04-14 06:50:06 admin 273

Currently, the global top ten tire companies already have seven factories in Thailand, where Bridgestone (4), Michelin (3), Goodyear (1), Sumitomo (1), Yokohama (1 home), is the new (1) and second choice (1). Production of tires covering passenger type tires, light truck tires, truck and bus tires, motorcycle tires, mining machinery / engineering tire and so on. "Go to Thailand plant" has become the common choice of giants.
Do not have to say it is in a central location in Southeast Asia, whether it is Southeast Asia's largest auto market, do not say how rapid economic growth in recent years, the state investment support policies more favorable tire alone is that it has the world's natural rubber section the title of a major producing countries, is enough to attract many national tire companies to build factories here.

The following position from the world, economic development, raw material advantage, vehicle development, policy support these points to explore foreign tire companies in Thailand plant reasons.

World status

Thailand is located in Southeast Asia, rapid economic development in the 1990s, became one among the "Asian tigers", is one of the world's emerging countries and emerging market economies in the world. As Southeast Asian Nations (ASEAN) members, Thailand belong to a vibrant economic region, close to the newly industrializing economies of East Asia (including South Korea, Taiwan, Hong Kong and Singapore), and a new global economic power countries (China and India). With the implementation of freedom of the Agreement, trade in Thailand and other ASEAN countries, China, Australia and other countries continued to grow between.

Economic development

Affected by the international financial crisis in 2008, ASEAN's economic growth rate in 2009 showed different degrees of decline, which appears countries have negative growth in Thailand, real GDP grew by -2.3%. But in 2010, Thailand's economy rebounded after bottoming out of recession, real GDP grew by 7.8 percent, Thailand's economy hit its highest level since 1996. However, due to the protracted political turmoil in Thailand, the Government has been unable to produce a new, caretaker no real power, budget restrictions and other problems expended received a serious drag on economic growth in Thailand, the Thai economy is still in the doldrums. Multiple agencies for 2014 and 2015 economic growth prediction, including the Asian Development Bank said Thailand's 2014 GDP growth to 1.6% in 2015 to maintain economic growth forecast of 4.5%.

Advantages of raw materials

Thailand from the early 20th century introduction of rubber, natural rubber production in Thailand in 1995 reached 1.786 million tons, accounting for 31% of world production, has become the world's largest natural rubber producer and exporter. At the same time thanks to the rising price of oil and synthetic rubber as well as the Thai government's strong support, the development of Thailand's natural rubber into the rapid development period.Data show that in 2013 production of 4.17 million tons of natural rubber in Thailand, an increase compared with 1.114 million tons in 2007, an increase of up to 36.5%.

Vehicle Development

Say natural rubber plantation industry is one of the pillar industries of the Thai economy, the auto industry is definitely an important part of the Thai economy, now Thailand is Southeast Asia's largest automobile manufacturing center and ASEAN automotive market. GM, Ford, Toyota, Honda, Mitsubishi, BMW and other car manufacturers are producing automobile factories in Rayong, Thailand and Southeast Asia supply market, as these well-known car company production base in Asia, so Rayong has "Detroit of the East" another name.

Data show that in 2013 the Thai auto production 2,456,200, an increase compared with 2008 1,062,500, an increase of up to 76.2%. Which yields 1.071 million passenger cars, an increase compared with 669,800 in 2008, an increase of up to 166.9%; commercial production of 1,385,200, an increase compared with 392,700 in 2008, an increase of up to 39.6%.

Policy support

Thailand is not only to provide foreign investors with a mid-continent of Asia is located in an attractive investment environment, including good infrastructure and convenient transportation, abundant labor, reasonable land lease and plant construction costs, but also provides with ASEAN, APEC organizations and other countries to establish opportunities for trade and investment cooperation. Thailand has a clear incentive for foreign investment incentives, noteworthy contents are as follows:

1, reiterated preferential investment projects with a minimum investment of $ 1 million (excluding land costs and working capital).

2, new investment projects, the elimination of export restrictions and limited accessories must be used in Thailand regulations.

3, to allow foreign holding and wholly owned operations in its investment in industrial projects.

4, based on current economic factors, per capita income and infrastructure investment area is divided into three districts. Tire companies to invest more in Rayong plant located in the second district. Can enjoy preferential policies as follows: (1) not less than 10% import duty on machinery import duties half to give relief; (2) Exempt from corporate income tax for three years, if the investment project is located in the industrial area eligible for incentives available exemption from corporate income tax for five years. Eligible for preferential investment companies, investment in more than 10 million baht (not including the cost of land and working capital) must obtain the ISO9000 international quality standard or other equivalent international standards within two years after the operation. If you can not do it according to the above requirements, it will be cut corporate income tax exemption period of 1 year. Import duties (3) Exempt from imported raw materials for the production of export goods necessary for the year (before the expiry renew).

At present, although not yet fully stabilized political situation in Thailand, Thai politics after the military coup is not obvious to many uncertainties, but political turmoil has not caused a fatal blow to the economy. Thailand's import and export trade remained active, the overall social environment is relatively stable. So once after Thailand's political stability, national award mutual investment and cooperation opportunities to enter.

Secondly, Thailand has the advantages of raw materials can not be compared to other countries, adequate supply of goods, low transportation costs, save production costs significantly.

Moreover, on repeated foreign anti-dumping, countervailing and safeguard other trade frictions China tire market, "going out" means China will become one of the tire companies to circumvent trade barriers. Finally, the Thai auto strong momentum of development, tire demand growth trend will continue to grow. Overall, Thailand has become a paradise for tire enterprises to invest and build factories, a huge potential for development.

 

Global Excel Tyres Co.,ltd www.exceltyres.com 

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