Thailand aims to keep its No 1 production spot in ASEAN

It looks like Thailand is responding to Indonesia’s emergence in aiming to be top gun in terms of automotive manufacturing in ASEAN. A report states that the country is set to spend 3.42 billion Baht (US$113 million) over the next three years to develop the nation’s auto industry; the amount was approved by the Thai cabinet earlier this week.

Most of the spending will focus on developing a skilled workforce, the report said. The country produced more than 1.6 million vehicles last year, and by 2014 the output could be in the region of three million vehicles.

With the major obstacle being a shortage of skilled labout to meet the increased demands, most of the money – around 2.17 billion Baht – will be spent on skills training. The rest will be used to develop what has been called an “integrated testing ground”, to both raise automobiles and parts standards as well as up the country’s competitiveness in terms of car testing facilities and abilities.

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