BANGKOK, June 11, (TNA) – Thailand is on track to become a regional centre for automobile research and development within the next ten years, the secretary general of the Board of Investment (BOI) announced today.

Speaking a day before Toyota was due to announce plans to invest in research and development in Thailand, Mr Somphong Wannapha said that the Japanese car manufacturer’s plans marked the beginning of a new era in the Thai automobile industry.  Whereas in the past research and development had been conducted abroad, car manufacturers were now likely to follow Toyota’s lead in setting up R&D bases in Thailand, he said.   

Totoya’s plans will see Thailand-based research and development into both saloon cars and pick-up trucks, with investment valued at Bt4.5-5 billion.  The R&D centre will be located near the new Bangkok airport.  Honda has already announced plans for motorcycle research and development in Thailand worth Bt800 million, while Stone is due to invest in research and development into car wheels.

Mr Somphong expressed confidence that in 10 years time all Japanese car manufacturers would conduct their research and development in Thailand rather than in Japan.  This in turn would develop personnel and knowledge in the Thai automobile industry, and lead to genuine added value for the automobile sector as a whole.

Mr Somphong revealed that the BOI planned to increasingly promote research and development, saying that the board attached great importance to STI (skills, technology and innovation) development.  A seminar would be held to collect together ideas on the issue in the near future, he said, adding that the BOI would waive income tax for an extra year for companies who invested in research and development and developed Thai engineering.  This would mean that companies investing in promotional zones 1 and 2 would not have to pay income tax for four and six years respectively.

He voiced assurances that despite the impact of Severe Acute Respiratory Syndrome (SARS), requests for BOI concessions this year would hit the BOI’s target of Bt200 billion, noting that over the first six months of the year requests had been valued at Bt81 billion, up 24 percent from the same period the previous year.  (TNA)

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