Auto-parts manufacturing plants closed by last year’s mega-flood were expected to resume 100 per cent operational capacity in this year’s second quarter, according to the Thai Autoparts Manufacturers Association (TAPMA).
Doing business in Thailand
In order to ensure Thailand’s competitiveness in the near future, Thailand needs to improve its productivity and investment climate.Experience from countries that have managed to increase productivity and rise up the value chain such as South Korea and Taiwan have shown that productivity improvements at the national level are achievable with a concerted efforts by the private sector, government, and academia.Firms need to raise their productivity and adaptability to the rapidly changing macroeconomic environment and intensifying competition through greater product and service development, higher efficiency, and better risk management.
Government in Thailand should take measures to improve the country’s investment climate such as streamlining the regulatory environment and improving public infrastructure which will help stimulate private investments as they help to reduce operating costs for firms.
A survey of firms in 2007 showed that in addition to the macroeconomic environment, other aspects of the investment climate that needs to be improved in order to promote greater investment and productivity improvements by firms are skills of the workforce, regulatory environment and public infrastructure.Clarity and continuity in policy directions and greater public infrastructure investments are needed not only to help stimulate growth in the short-run, but also improve productivity for the longer-term growth.Political stability would help to regain investors as well as assure them the clarity and continuity of policy directions.
Originally posted here:
Flood-ravaged auto-parts plants expected to fully operational in Q2