Board of Trade of Thailand proposes the government the foundation of SEA-LAC Fund
Aeroklas conducts feasibility study for setting up automotive part production base in Latin
Vice president of Board of Trade of Thailand prepared for proposing Thai government to set up fund promoting trade and investment between Southeast Asia (SEA) and Latin America and Caribbean (LAC) region. With initial fund worth of over 10,000 million dollars from the collaboration of ASIAN member countries in the form of fund raising, technology transfer and language learning development, assured that Latin America will be a newly potential emerging market. At the same time, Aeroklas, Thai automotive part manufacturer is conducting the feasibility study for investing in Latin America in the term of production base of automotive part.
Mr. Phairush Burapachaisri, vice-chairman, The Board of Trade of Thailand and the chairman of The Southeast Asia and Latin America Trade Center (SEA-LAC), University of the Thai Chamber of Commerce said in the seminar program “Latin America - a new future of investment” in Boi Fair 2011 that the SEA-LAC Trade Center is under the process of proposing the government to setting up Southeast Asia and Latin America and Caribbean region investment fund. The objective of this fund foundation is to encourage entrepreneurs and prospective entrepreneurs in Asian countries to start up trade and investment in Latin American countries as this is a newly interesting emerging market.
The initial amount of money for this fund should be not less than 10,000 million dollars that may be in the form of collaboration from Asian member countries for providing assistance to investors such as financial assistance for starting business, technology transfer and the promotion of language learning for better communication as well as the settlement of distribution centers in the potential areas. These distribution centers will act as the centers for distributing import and export products between Asian and Latin American countries. The assistance is also in the form of facilitating those investors to reduce cost of procedure.
“The proposal for expanding trade and investment in Latin America has been discussed since the previous administration for invading trade and investment in those countries. If the present government agrees that Latin America is an interesting emerging market and being the trade and investment strategy must gear up the concrete collaboration from all concerned parties might it be the Asian cluster investment promotion so that we will get bigger and more potential fund” Mr. Phairush said.
The Vice chairman also noted that nowadays, Latin America is the potential export market and interesting investment heaven. There are 48 countries in the Latin America with total population of over 600 million, similar to Asian market. Lately, there are many Thai entrepreneurs made the presence in that area. Those are SCG and Betagro for instance. Latin America countries are potential to be raw material source supplying for many industries ranging from steel, crude oil, coal, natural gas and agricultural planting area. Thus it is believed to be a new important investment source for Thailand.
Supawadee Vitoorapakorn, Deputy Managing Director of Aeroklas Co,,Ltd. said that now the company is conducting feasibility study for setting up car and pickup truck accessory production base in Latin America, initially, the company is eyeing on Mexico as the target country to invest. Automobile industry in that country is growing and there also is linkage industry as well as sufficient number of labors to be hired. The company in the past 2-3 years has been testing that market by aggressively offering products to those consumers and gained robust successful story.
Latin America and Caribbean region is an interesting and high potential market especially in the field of automotive part industry. With the aggressive growth rate of automobile industry reflected in 2010 with the number of new cars production in those countries around 5 million per year. Brazil has new cars production around 3.3 million per year, 43% growth while Argentina has approximately 690,000 new cars a year, grew up 11% and Chile with 280,000 cars annually, grew up 63% for instance.
“We are the automotive part and equipment manufacturer. Previously, we had set up our production bases in many countries both in America and China and lately in USA. However, when we look at the potential for trade and investment in Latin America, this is an interesting place to invest and be the target for the company to expand business there in the future.” Deputy Managing Director said.
