Chatrudee Theparat

The Board of Investment (BoI) is seeking to generate more than eight billion baht in deals next year between auto-parts suppliers and car-makers from its vendors-meet-customers programme under BoI's Unit for Industrial Linkage Development (Build).

Build was designed to promote sourcing of parts from small suppliers for larger manufacturers with BoI as a match-maker. BoI believes that more parts suppliers, especially the small ones, are expected after it adopted a policy to promote cluster development for the auto industry by offering a maximum level of promotional privileges.

Wisarn Tantawichian, head of Build, said BoI had succeeded in running the programme for three years. In 2002, the scheme generated deals totalling 3.7 billion baht between auto-parts suppliers and car-makers. This year, similar deals worth double that amount are expected.

Market turnover in the automotive industry is expected to reach 800 billion baht in the next three years, with auto parts alone worth 200 billion baht. Mr Wisarn said auto-parts suppliers could tap this growth but that they must strengthen their competitiveness.

BoI secretary-general Somphong Wanapha said Build needed to play a wider role in boosting small parts suppliers than just match-maker. With other state agencies and global educational institutions, Build assists small auto-parts suppliers in production, technology, marketing and financing.

Mr Wisarn said the Asia Auto Parts Expo and Logistics Asia 2003, on Sept 4-7 at the Bangkok International Trade and Exhibition Centre, will be a forum for auto-parts suppliers to meet car-makers.