Country report - Thailand

Introduction:

- Thailand is an emerging country for automotive market and also for other sector
- Currently it has 1800+ manufacturing companies.
- The major industrial area is Thon Buri, Chon Buri & Rayong. There are other industrial areas in
Thailand. The details can be found in book “Cost of doing business in Thailand”.
- Thailand automotive market is dominated by Japanese manufacturer.
- A huge market for automotive component exports.

Competition:

- The Thailand market is dominated by BVQI and TUV Nord for System Certification.
- Homologation business is dominated by RDW, TUV Nord, SGS and TUV SUD. Idiada has setup
their office recently in Thailand. VCA is operating with international connection.
- 70% of the companies in Rayong are TS certified by BVQI.

Business:

- The key to automotive business in Thailand is targeting the Japanese manufacturer through
Japan connection.
- Oil & gas sector is also growing.
- CNG sector is slowing down in Thailand as the government has stopped promoting CNG due to
import prices. Government is promoting LPG to some amount.
- The industry doesn’t accept any change easily, until enforced by the big manufacturer’s and cost
benefits.
- The industry has a huge trust on Japanese market and the industry functions as per Japanese
systems. Maximum market is dominated by Toyota, Isuzu, Nissan, Mitsubushi.
- FTI is the agency which maintains the complete industry record with its local market sales and
also export trends.
- Automotive homologation has huge potential as many of the Japanese manufacturer source
components locally and export their vehicles.

Office setup in Thailand:

- Startup in Thailand can be through 2 routes

1. BOI- application to Board of Investment in Thailand. They details can be found in Book A
guide to the board of investment.
2. Through application to government for foreign business licenses.
- Foreign business licenses can be applied by Vincotte alone or with a Thai partner. If applied with
Thai partner, it is easy to obtain the licenses.
- All taxation labilities are available in the book as mentioned above.
- The basic salary range for managers and top executives are given in the book, cost of doing
business in Thailand.

Customer Meeting Report

 Country report - Thailand

- Recruitment procedure is through a recruiting firm or through new papers.

- Before hiring a person, the company needs to be registered in Thailand and all government
formalities to be completed.

Customer Meeting Report