Tip:
Highlight text to annotate it
X
WELL, SOME GOOD NEWS OUT OF THAILAND. IT IS GETTING RECOGNITION FOR ITS QUICKLY GROWING
AUTOMOBILE INDUSTRY. AND NOW THE COUNTRY IS THE WORLD'S THIRD LARGEST COMMERCIAL VEHICLE
MAKER BEHIND THE U.S. AND CHINA.
VOA CORRESPONDENT STEVE HERMAN WENT TO RAYONG, THAILAND, WHERE MANY FOREIGN-BRANDED AUTO
MAKERS ARE MAKING CARS FOR SOUTHEAST ASIA. ON ASSIGNMENT'S PHILIP ALEXIOU CAUGHT UP WITH
STEVE TO FIND OUT MORE.
STEVE HERMAN IN BANGKOK, YOU KNOW I ALWAYS THOUGHT OF GOING TO VISIT THAILAND FOR THE
BEACHES BUT CERTAINLY NOT TO GO THERE TO CONSIDER IT AS A MAJOR HUB FOR AUTO MANUFACTURING.
HOW DID THIS ALL HAPPEN?
WELL THIS GOES BACK A NUMBER OF YEARS. THE FIRST AUTO PLANS IN THAILAND ACTUALLY GOT
OFF THE GROUND IN THE EARLY 1960S BUT IT'S ONLY IN THE LAST 15 YEARS OR SO THAT THE INDUSTRY
HAS REALLY TAKEN OFF THE GROUND AND HAS BECOME A MAJOR HUB. IN FACT, IT IS THE HUB NOW IN
SOUTHEAST ASIA FOR AUTOMOBILE MANUFACTURING.
NOW WHAT HAS SORT OF I GUESS PROMPTED THIS SURGE IN AUTO MANUFACTURING THERE. WHAT DID
THEY DO?
THERE'S OBVIOUSLY LAND AVAILABLE FOR THE FACTORIES, THERE'S A WORKFORCE, THERE'S INFRASTRUCTURE
AND, YOU KNOW, WE TAKE THESE THINGS FOR GRANTED IN THE DEVELOPED WORLD BUT IF YOU'RE LOOKING
TO GO INTO DIFFERENT PARTS OF THE WORLD ALL OF THESE THINGS ARE NOT NECESSARILY GUARANTEED
FOR YOU ALONG WITH ALL SORTS OF INCENTIVES FOR YOU TO SET UP YOUR FACTORY.
THE AUTOMOTIVE SECTOR IS NOW THAILAND'S THIRD LARGEST INDUSTRY COMPRISING 12 PERCENT OF
THE COUNTRY'S GDP AND EMPLOYING 400-THOUSAND WORKERS. BANGKOK'S CLOGGED ROADS ATTEST TO
THE SUCCESS - WITH SALES ACCELERATED BY GOVERNMENT TAX REBATES TO FIRST-TIME BUYERS.
NOW THE OTHER THING YOU HAVE TO KEEP IN MIND IS THAT WE HAVE A HUGE MARKET IN SOUTHEAST
ASIA. THE ASEAN REGION COVERS ABOUT SIX HUNDRED MILLION PEOPLE AND IT IS A RISING MIDDLE CLASS
AS WELL SO THERE'S A POTENTIAL OF NOT ONLY FOR COMMERCIAL VEHICLES BUT A LOT OF FIRST
TIME AND NOW SECOND TIME OR SECOND GENERATION CAR BUYERS IN SOUTHEAST ASIA.
YEAH, THE COMPETITION IS HEATING UP THE REGION AND YOU MENTIONED THAT INDONESIA IS SORT OF
NIPPING AT THE HEELS I GUESS OF THAILAND. HOW IS THAT COMPETITION WORKING OUT?
THEY ARE THE PRIME COMPETITOR FOR THAILAND IN THIS SPHERE AND THEY WERE BRIEFLY ABLE
TO OVERTAKE THAILAND IN 2011 WHEN WE HAD DEVASTATING FLOODS IN THE COUNTRY WHICH DESTROYED SOME
OF THE AUTO PLANTS AS WELL AS THE PARTS MANUFACTURERS AS WELLS AS A LOT OF THE ROADS. AND PRODUCTION
WENT WAY DOWN IN THAILAND WHEN INDONESIA WAS NUMBER ONE IN SOUTHEAST ASIA THAT YEAR IN
TERMS OF PRODUCTION. BUT IN 2012 THAILAND BOUNCED BACK AND IN 2013, IT A, IS INDISPUTABLY
IN FIRST PLACE. IT APPEARS IT WILL STAY IN THAT POSITION IN YEARS TO COME.
DID THE EXPERTS THAT YOU'VE SPOKEN WITH MENTION ANYTHING ABOUT HOW THEY HAVE TO, REALLY I
GUESS, CHIP AWAY AT GRABBING, GRABBING THE MARKET SHARE OF THE LABOR FORCE WHICH OBVIOUSLY
IS, IN THE FUTURE AT LEAST, MAYBE A PROBLEM IN THAILAND BECAUSE THEY'VE GOT FULL EMPLOYMENT
NOW AS YOU MENTIONED.
RIGHT. SOME OF THE MANAGERS I WAS SPEAKING WITH SAID THIS IS A CHALLENGE FOR THEM TO
BE ABLE NOT ONLY TO RETAIN QUALIFIED WORKERS BUT TO KEEP THEM AS WELL. THEY, OF COURSE,
ALL OF THESE FACTORIES HAVE THEIR OWN TRAINING SYSTEMS. THEY'RE NOT EXPECTING TO SHOW UP
FOR THE ASSEMBLY LINE AND KNOW HOW TO DO IT. THEY WANT TO TRAIN THEM THEMSELVES. BUT THEY
ARE LOOKING FOR SKILLED ENGINEERS, TECHNICIANS, ELECTRICIANS, A, PEOPLE LIKE THAT. THEY'RE
INCREASINGLY SOPHISTICATED JOBS AND YOU WOULD THINK THAT THERE WOULD BE A LOT OF FOREIGNERS
RUNNING AROUND THESE FACTORIES BUT FROM WHAT WE SAW WE WERE IN THREE DIFFERENT AUTOMOBILE
MANUFACTURING PLANTS. I WOULD SAY IT WAS 99.5 PERCENT THAIS WHO WERE IN THERE AND RUNNING
AND OPERATING THESE FACTORIES.
DID YOU GET A CHANCE TO TALK TO ANY OF THE LINE WORKERS AT ALL.
THEY WERE VERY BUSY...IF YOU SEE ON THE VIDEO A WHEN YOU'RE ON THE ASSEMBLY LINE A THERE'S
NOT MUCH A CHANCE TO REALLY INTERACT WITH THEM. THAT WOULD BE VERY DISTRACTING AND COULD
CAUSE ALL SORTS OF PROBLEMS FOR THE ASSEMBLY LINE. EVERYBODY SEEMED IN REALLY GOOD SPIRITS
AND THEY WERE VERY HAPPY TO HAVE THESE JOBS AND FELT THEY WERE BEING TREATED WELL BY THEIR
EMPLOYERS AND ALL THE MANUFACTURERS ALSO HAVE A SCHEMES TO GIVE VERY SIGNIFICANT DISCOUNTS
FOR ANY OF THE EMPLOYEES THAT WANT TO PURCHASE AN AUTOMOBILE FROM THE COMPANY WHERE THEY'RE
EMPLOYED MAKING THESE CARS AND TRUCKS.
CORRESPONDENT STEVE HERMAN IN BANGKOK, TALKING THERE WITH OUR PHILIP ALEXIOU. NOW LAST YEAR,
ABOUT TWO AND A HALF MILLION CARS WERE MADE IN THAILAND, ONE MILLION OF WHICH WERE EXPORTED,
MAKING THE COUNTRY NOW THE WORLD'S 7TH LARGEST CAR EXPORTER.