With the transformation from an agricultural to industrial country, Thailand’s economy has performed well over the past 4 decades. Thai economic growth has accelerated at a grater pace on average than the average growth of global economy, excluding the period of 1997 economic crisis. The highly expanded economy has helped reduction of poverty and bolsters wealth in manufacturing and industrial sectors which have particularly grown rapidly along with the development of the financial sector while the service sector has gradually become a key engine driving the economy. The influx of Japanese investment has signfiicantly boosted the export volume. The major investment of Japanese investor is Automotive and Parts industry
Since early 1960s, Thai govenrment has launched an investment scheme promoting the setting up of Auto Assembly Plants initially (CKD) Complete Knock Down parts were imported and assembled. Thailand policy was to promote increasing the local content parts and in 1989 the new local content requirement has launched, this time requiring 54 percents local parts. This measure has actually drawn investment from world major Automakers. Two Japanese Automakers were the first and established their own parts suppliers, assembly plants and sales companies.
Today Thailand is the second-largest producer of pickup trucks in the world after United States. Recently Thailand also becomes a major exporter of passenger and Eco cars. This year the Auto market is expected to reach new heights with 750,000 vehicles to local sales and another 850,000 units exported. This mean production could reach 1.6 million units.
The sharply increases of local Automobile industry directly bolsters Cold Rolled industry which are major parts of Auto & Parts industry. Thai Government also promoted the Auto industry by entering Japan-Thailand Economic Partnership Agreement (JTEPA) and exempts the import duty of Hot Rolled Steel Sheet for Cold Rolling for Auto & Parts usages. This will encourage most of Auto & Parts Makers in Thailand to utilize local produced Cold Rolled Steel for local sales and global markets, creating bright future for Cold Rolling manufacturers.