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g in production base increase technological level in Thailand and this will increase productivity and competitiveness to Thai automotive industry.

Thailand’s automotive industry has strong international market that could lead Thailand to become one of the most important automotive productions in the future with high rate of growth in export value to ASEAN markets which includes ASEAN-5 and CLMV market and opportunity to expand export of vehicles to new market such as Japan. Quality of automotive productions are becoming more and more acceptable by overseas. Thai automotive industry has a very bright future.

Chapter 7: SWOT Analysis

In this chapter, SWOT analysis is used to analyze Thai automotive industry in term of domestic production, domestic sales and international sales or export to international markets. In each section, strength, weakness, opportunity and threat will be analyzed by both experts and my opinions towards Thai automotive industry.

Chapter 7.1: Strength of Thai automotive industry

The first strength of Thai automotive industry is the advantages in geographical location to become production hubs. Thailand is located in a center of Asia and this gives us the opportunity to trade with countries in Asia. Thus the geographical location gives opportunity for Thai automotive industry to expand to new international market.

The second strength of Thai automotive industry is the Joining of ASEAN members. ASEAN give us the opportunity to trade freely within the regions by AFTA. This benefit Thai automotive assemblers since some components used in production of vehicles are expensive to produce domestically and AFTA help assemblers to lower their cost by importing of automotive parts.

The third strength of Thai automotive industry is that Thailand has strong domestic and international market. Strong in this place means value of vehicles sold. It’s strong enough to support the current production capacity of 1.6 million vehicles in 2010. If domestic and international market is not strong enough, it is possible that Thai automotive assemblers will decrease its production.

The forth strength of Thai automotive industry is high level of technological transfers and productivity by FDI from countries like Japan and USA. We have shown that FDI is highly positively correlated with productivity. The production technology has been developed from upstream to downstream industries.

Chapter 7.2: Weakness of Thai Automotive Industry

It is hard to think of weakness in Thai automotive industry because everything seems to be perfect in the industry. However, there must be weakness in order to improve the industry to the next level.

The first weakness of Thai automotive industry is limitation of communication with foreign automotive assemblers. Miscommunications between workers are common and this could leads to lower productivity and transfer of technology is not maximized.

The second weakness of Thai automotive industry is machines and technologies are heavily depending on foreign. It is expensive to buy or replace machines used in production of vehicles since some machines are not able to produce domestically since it requires technologies.

Chapter 7.3: Opportunity of Thai Automotive Industry

The first opportunity of Thai