Thailand's Electrical and Electronics Industry (E&E) has been experiencing a strong and steady growth and is playing a significant role in the country's economy as a significant export earner. The E&E industry is one of the country's largest in the manufacturing sector. E&E exports reached US$ 53 Billion in 2011 which contributed nearly 23% of Thailand's annual export revenue. During the first half of 2012, the Board of Investment (BOI) received applications for 134 E&E projects valued at nearly THB 59.7 Billion (US$ 1.9 Billion) in potential new investments by foreign companies.
As the world leader in hard disk drives (HDDs) production and a leading manufacturer in the integrated circuits and semiconductors industries, Thailand provides most voluminous electrical appliances base in the ASEAN region. Thailand has successfully developed world-scale production capacities within a dynamic and concentrated cluster that continues to increase over the years. It is now home to the world's top E&E companies, including Sony, Hitachi, Samsung, Fujitsu, Seagate, Phillips Electronics, Electrolux, Honeywell Electronic Materials, Emerson Electric, LG Electronics and many more.
Coming years are seeing more investment in the country as enterprises demonstrate confidence in these countries. Samsung has announced plans for spending THB 3 Billion to double its local refrigerator output to 3 Million units. LG is also expanding its air conditioner manufacturing facility with a THB 1 Billion investment. Sony has earmarked THB 700 Million for marketing and promotions to boost sales of its digital cameras.
Toshiba Carrier Corp. is also building a second air-conditioner plant in Thailand that will be the company's largest worldwide with a capacity of 2 million units a year. Electrolux will also set up its first ASEAN refrigerator factory in Rayong Province, with production starting by early 2013.
Further, to ensure sustainable growth of the industry, the BOI grants a wide range of incentives to E&E investors. Tax-based benefits include exemption or reduction of import duties on machinery and raw materials, and corporate income tax exemption for up to eight years. The non-tax incentives are permission to bring in foreign workers, own land and remit foreign currency abroad.
Thailand's E&E industry is expected to continue on this path of growth in the upcoming years. With such a strong government support and business friendly environment, it is no wonder why Thailand's E&E industry has been so successful. Experts believe that as the country succeeds in becoming a leading innovator in the field, electrical & electronics industry would continue to play an indispensable role in the national economy.
(Source: Insight Alpha)