Volvo to move its production base from China
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Seeks Thai presence to tap AEC market
Swedish auto giant Volvo will soon move its production base from China to Thailand, to capitalise on the Kingdom’s potential to serve as an Asean hub under the Asean Economic Community (AEC), which comes into effect in 2015.
Following a recent meeting with Sweden’s state secretary to the Minister for Trade, Gunnar Oom, Deputy Commerce Minister Siriwat Kajornprasart said many Swedish companies aim to expand their investment in Thailand, mainly in industries involving technology and environment.
Volvo plans to move its production base to Thailand soon due to the high potential here to adopt new technology and for cost-effective operations.
Electrolux, an electrical appliances manufacturer, has also set up its first Asean-oriented refrigerator plant in Rayong to cash in on the upcoming AEC, the minister pointed out.
Many Swedish investors would like to start investing in Thailand. However, some enterprises have raised concerns about the Foreign Business Act, which has limited the types of businesses for foreign investors.
Siriwat promised to help facilitate investment from Sweden and said the government would carefully follow up on issues of concern to make Thailand more attractive to investors.
Oom said that his government was looking at a “Joint Plan of Action” between Sweden and Thailand to increase political, economic and social cooperation. It plans to exchange information on farming, security, technology, environment, energy, tourism and education as well to help promote development.
Oom also encouraged Thailand to start negotiations for a free-trade agreement with the European Union.
He explained that as Thailand is at risk of losing out on EU export privileges under the revised Generalised System of Preferences in 2014, the FTA will ensure benefits in the long run.
