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innovation<br />

As <strong>the</strong> eighth largest automotive production base in <strong>the</strong><br />

world, <strong>the</strong> Association of Sou<strong>the</strong>ast Asi<strong>an</strong> Nations (ASEAN)<br />

has <strong>the</strong> potential to be one of <strong>the</strong> biggest auto parts <strong>an</strong>d<br />

accessories sourcing hubs.<br />

ASEAN – consisting of Brunei, Cambodia, Indonesia, Lao PDR,<br />

Malaysia, My<strong>an</strong>mar, Philippines, Singapore, Thail<strong>an</strong>d <strong>an</strong>d Vietnam<br />

- has a population of about 526 million <strong>an</strong>d a combined GDP of<br />

US$1.27-trillion. The region has <strong>an</strong> <strong>an</strong>nual growth rate of more<br />

th<strong>an</strong> five percent. The Car parc is in <strong>the</strong> region of 26 million which<br />

indicates a car penetration rate of about 25 per 1000.<br />

To promote <strong>the</strong> region, Thail<strong>an</strong>d’s Department of Export<br />

Promotion (DEP) is hosting <strong>an</strong> ASEAN Pavilion at<br />

<strong>the</strong> biennial Thail<strong>an</strong>d Auto Parts & Accessories<br />

(TAPA) 2010 exhibition. For <strong>the</strong> first time, <strong>the</strong><br />

Ach<strong>an</strong>a Limpaitoon, vice president of<br />

<strong>the</strong> Thai Auto-Parts M<strong>an</strong>ufacturers<br />

Association (TAPMA).<br />

DEP is offering complimentary booth to 10 ASE-<br />

AN countries, 5 booths each, a total of 450 SQM.<br />

are provided <strong>for</strong> all 10 ASEAN countries. Until now,<br />

<strong>the</strong>re are 5 countries scheduled to attend <strong>the</strong> exhibition,<br />

including 6 booths from Malaysia, 7 booths from Singapore,<br />

3 booths from Vietnam <strong>an</strong>d 5 booths from The Philippines.<br />

With a highly infrastructure <strong>an</strong>d located close to Asia’s biggest<br />

markets, Thail<strong>an</strong>d is positioning itself as a natural regional logistics<br />

hub. Geographically, B<strong>an</strong>gkok is closer to <strong>the</strong> heart of Asia<br />

th<strong>an</strong> <strong>an</strong>y o<strong>the</strong>r Asi<strong>an</strong> city aside from Sh<strong>an</strong>ghai <strong>an</strong>d Taipei. As a<br />

group, ASEAN -member countries are positioning <strong>the</strong>mselves to<br />

provide a wide <strong>r<strong>an</strong>ge</strong> of components <strong>an</strong>d assemblies to OEMs.<br />

Large OEMs such as Toyota <strong>an</strong>d Honda have recognized <strong>the</strong> import<strong>an</strong>ce<br />

of ASEAN <strong>an</strong>d have a strong supply chain m<strong>an</strong>agement<br />

presence in <strong>the</strong> region. Thail<strong>an</strong>d is already <strong>the</strong> largest production<br />

base in ASEAN <strong>an</strong>d <strong>the</strong> country has naturally become <strong>the</strong> nerve<br />

center of <strong>the</strong> supply chain <strong>for</strong> most automotive comp<strong>an</strong>ies.<br />

Automotive production<br />

in Thail<strong>an</strong>d by year:<br />

2006 = 1,188,044<br />

2007 = 1,287,346<br />

2008 = 1,393,742<br />

Thail<strong>an</strong>d taking<br />

center position as ASEAN<br />

auto parts hub<br />

In recent years, has earned <strong>an</strong> impressive reputation as <strong>the</strong> ideal<br />

plat<strong>for</strong>m <strong>for</strong> both local <strong>an</strong>d international comp<strong>an</strong>ies to showcase <strong>the</strong>ir<br />

auto parts, accessories, products <strong>an</strong>d services. To ensure <strong>the</strong> continuous<br />

success of TAPA 2010, <strong>the</strong> Department of Export Promotion<br />

(DEP), Ministry of Commerce, <strong>an</strong>d <strong>the</strong> Royal Thai Government embarked<br />

on a nine-city road show from September to November 2009<br />

to promote <strong>the</strong> exhibition. The road shows were held in Kuala Lumpur,<br />

M<strong>an</strong>ila, H<strong>an</strong>oi, Jakarta, Chongqing <strong>an</strong>d Sh<strong>an</strong>ghai, Singapore, Dhaka<br />

<strong>an</strong>d New Delhi. The road shows were attended by about 300 delegates<br />

<strong>an</strong>d officials from DEP, Thai Auto-Parts M<strong>an</strong>ufacturers Association<br />

(TAPMA) <strong>an</strong>d consulting firm, Frost & Sulliv<strong>an</strong>, were<br />

present to brief about overall automotive industry, The<br />

Role of Thail<strong>an</strong>d in supporting automotive <strong>an</strong>d auto<br />

parts business, as well as <strong>the</strong> cooperation in automotive<br />

industry, auto parts <strong>an</strong>d accessories<br />

to <strong>the</strong> attendees on TAPA 2010.<br />

Industry players present at <strong>the</strong> road<br />

shows included Key Safety Systems, Bosch,<br />

Magna Intier China, Valeo Asia, Delphi,<br />

Sh<strong>an</strong>ghai Automotive Parts Circulation Trade<br />

Association, Sh<strong>an</strong>ghai Federation of Industry<br />

<strong>an</strong>d Commerce Autoparts <strong>an</strong>d Accessories<br />

Chamber of Commerce, Geely Auto,Federal-<br />

Mogul Corp, Cherry Auto, Tata Motors, Denso<br />

India, Hino Motors, Hero Honda, Mitsui, Takata,<br />

Perodua Vendors Club, Proton Vendors Club, APM<br />

Auto Electrics, Armstrong, Delloyd Ventures, Tracoma,<br />

PT Selamat Sempurna, ADR Group, PT Astra Niss<strong>an</strong> Diesel<br />

Indonesia <strong>an</strong>d GIAMM (Indonesia Motor Vehicle <strong>an</strong>d Motorcycle<br />

Equipment Industry Association).<br />

Vice president of <strong>the</strong> Thai Autoparts M<strong>an</strong>ufacturers Association<br />

(TAPMA), Ach<strong>an</strong>a Limpaitoon, said ASEAN would have <strong>an</strong> even<br />

stronger role to play when it became a Free Trade Area (FTA) this<br />

year. “The lifting of trade barriers will help ASEAN to be market<br />

competitive against major players such as China”. ASEAN’s automotive<br />

players had <strong>the</strong> competitive edge to produce quality parts<br />

at attractive prices, she added.<br />

According to Limpaitoon, Thail<strong>an</strong>d is keen to work closely with<br />

o<strong>the</strong>r ASEAN countries to promote <strong>an</strong>d develop <strong>the</strong> region as <strong>an</strong><br />

auto parts <strong>an</strong>d accessories sourcing hub.<br />

“Thail<strong>an</strong>d has <strong>the</strong> strongest original equipment <strong>an</strong>d m<strong>an</strong>ufacturing<br />

(OEM) <strong>an</strong>d replacement equipment m<strong>an</strong>ufacturing (REM) capability in<br />

Asia, with more th<strong>an</strong> US$6-billion in <strong>an</strong>nual export value,” she said.<br />

TAPA 2010 is <strong>an</strong> excellent plat<strong>for</strong>m to enh<strong>an</strong>ce cooperation in<br />

<strong>the</strong> automotive industry as well as to streng<strong>the</strong>n <strong>the</strong> market potential<br />

within ASEAN. TAPA is expected to bring toge<strong>the</strong>r more th<strong>an</strong><br />

300 exhibitors across <strong>the</strong> ASEAN area at <strong>the</strong> B<strong>an</strong>gkok International<br />

Trade <strong>an</strong>d Exhibition Center in B<strong>an</strong>gna, B<strong>an</strong>gkok. More th<strong>an</strong> 16 000<br />

visitors from ASEAN, Africa, India, B<strong>an</strong>gladesh, China, Jap<strong>an</strong>, <strong>the</strong><br />

Middle East, Europe, Latin America <strong>an</strong>d <strong>the</strong> United States are<br />

expected to attend <strong>the</strong> event. AI<br />

82 to read full version of AI stories go to www.ai-online.com

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