Sunday, March 28, 2010

BANGKOK POST: FTAs force closures of auto-parts firms

Local auto-parts manufacturers are being forced out of business by increased competition from free-trade agreements including the Asean Free Trade Area.
Fewer than 10% of local first-tier parts suppliers are wholly owned Thai companies at present compared with 80% a decade ago, said Prasartsilp On-Aht, president of the Thai Auto-Parts Manufacturers Association.
"The only competitive advantage of the Thai auto-parts industry is skilled labour. The country lacks raw materials and technological know-how," said Mr Prasartsilp.