Burma revs up for Thai vehicles amid growing local demand
The Burmese private sector is interested in importing vehicles from Thailand to serve its growing demand, particularly a market for pickup trucks that is currently 60,000-80,000 units per year.
A group of 40 Burmese automotive businessmen visited Thailand this week on a four-day trip, which ended yesterday, to meet with members of the Thai automotive industry.
Chokdee Kaewsang, deputy secretary-general of the Board of Investment, said the group met with 24 auto-parts manufacturers whose initial trading value reaches Bt1.8 billion.
Moe Kyaw, joint secretary-general of the Burmese Chamber of Commerce and Industry, said the Burmese were eager to create business networks and negotiate the purchase of vehicles and auto parts from Thailand.
The total number of cars and pickup trucks in Burma is currently about 380,000 units, or one vehicle per 150 people. Of that number, 90 per cent have been in use for more than five years, and the demand for new vehicles remains high.
“Although the gross domestic product of Burma is five times lower than Thailand’s, its growing economy will increase the purchasing power and demand for cars there,” said Moe Kyaw said.
In the past, Burma imported used cars from Japan and parts from Thailand and China.
The total trade value between Thailand and Burma averages US$800 million (Bt24.69 billion) per year. Thailand is the second-largest importing source for Burma after China. The export of Thai goods includes food and consumer products.
Aye Tun, executive committee member of the chamber, said the Burmese government was deregulating trade and investment laws as well as restructuring its tax system to draw more foreign investors. However, the import tariff for vehicles is 165 per cent.
