The Board of Investment (BoI) is optimistic that Thailand's automotive and electronics subcontracting industry will remain vibrant with higher exports.
Sonklin Ploymee, director of the BoI Unit for Industrial Linkage Development (Build), said international markets for automotive and electronics remained promising thanks to strong and reputable supply chains developed over many decades here.
The Asean Economic Community, which is due to take effect late this year, will be a major driver to attract foreign direct investment to emerging countries such as Indonesia, Myanmar and Laos, which is good for Thai automotive and electronics subcontractors.
"The automotive industry in Indonesia, for instance, is growing, but the supply chain in that country has not yet been developed enough," Ms Sonklin said. "This is a huge opportunity for Thai manufacturers [subcontractors] to support foreign car makers there."
She said the BoI was upbeat that the automotive and electronics subcontracting industry would grow by 10-15% this year to 52-54 billion baht due to higher exports, notably to Asean members.
Last year, the sector grew by only 3.06% to 47.4 billion baht due largely to Thailand's political turmoil. In 2013, the industry surged sharply by 17% to 46 billion baht. Exports made up 30% of the total.
Thailand has long been considered one of the world's most attractive subcontracting destinations. Large multinational corporations in a wide range of industries look to Thailand for low-cost, high-quality production of electronics components, metal parts, polymers, rubber and more.
The years of invaluable experience held by Thai manufacturers along with the country's developed infrastructure and cheap, skilled labour make Thailand arguably the top manufacturing location in Southeast Asia.
Ms Sonklin said Build planned roadshows in five countries this year — Japan, Indonesia, Myanmar, Laos and Malaysia — to boost exports.
Build has been helping foreign buyers and Thai manufacturers to connect for more than 20 years.
It actively promotes and develops Thailand's supporting industries in order to maximise the industrial competitiveness of the country.
Build also serves as an intermediary between manufacturers of ready-made products and small and medium-sized parts producers. The links they help to create lead to numerous business contracts and a general transfer of technology within industry.
Build provides year-round sourcing services to develop Thailand's business network by steering interested buyers towards potential suppliers.
Meanwhile, Build is partnering UBM Asia (Thailand) and the Thai Subcontracting Promotion Association to host Subcon Thailand 2015 at Bangkok International Trade and Exhibition Centre on Bang Na-Trat Road from May 13-16. About 24,000 visitors from 15 countries are expected, with 300 industrial exhibitors participating.
Ms Sonklin said the event was expected to bring together 4,000 businesses for matchmaking, with business transactions worth 7.7 billion baht.
