Worachak to be promoted among foreigners

Business News - Friday December 14, 2007

AUTO PARTS / INTERNATIONAL TRADE

Worachak to be promoted among foreigners

SANTAN SANTIVIMOLNAT

Worachak Road will soon be developed and promoted as Thailand's largest auto-parts trading centre to make it better known among foreigners.

Similar to the Bo Bae or Pratunam areas for garments and Surasak Road for jewellery trading, Worachak will be officially introduced to foreigners at Thailand Auto Parts & Accessories 2008 (TAPA 2008), the region's most significant industry trade event, in Bangkok next April.

The fair will help Thailand build its reputation as Asia's auto parts and accessories hub.

The Department of Export Promotion has pledged to give full support to develop and promote Worachak as the hub for auto parts in Thailand.

The Worachak Auto Parts Dealers Club, led by Punika Kitapanich, a parts trader on the road, was recently formed to run the project with members being recruited from traders in the area.

At present, there are more than 1,000 auto-parts shops in the Worachak area, generating monthly sales of about two billion baht or about two million baht per business per month.

Ms Punika said entrance arches would be erected at the Mansri, Plapachai and Wat Tuk junctions and on Mahachai Road within three months as landmarks for the new auto-parts shopping area.

''Although Worachak has long been widely known for its auto-parts trading activities, the community still has not clearly defined physical boundary markers. The construction of four arches will give both buyers and sellers confidence that the area is heading toward prosperity as Thailand's auto-parts hub,'' she said.

As well, the club will introduce a logo as a certification mark, a type of guarantee for product quality and reasonable prices from the club's members for consumers.

In April, the club will make its official appearance at TAPA 2008, with the Worachak pavilion set up to introduce its products and activities.

The association of traders from the Worachak area aims to strengthen collaboration for future trade shows overseas in South Africa and the Philippines, as well as heighten awareness within auto-parts markets abroad.

Ms Punika said Thai auto-parts traders currently had difficulties competing with Chinese businesses, which enjoy a 17% tax concession from their government.

To enhance the competitiveness of local industries, the club has appealed for a 10% import duty reduction for member dealers wishing to participate in trade shows overseas.

Auto parts from Thailand are generally of higher quality than those from China but also more expensive, making it very difficult to compete internationally.

''Big money from Europe and the US has gone into China's auto-parts production in recent years and the Thai government must act now to establish a realistic opportunity for local businesses to compete,'' she said.

The TAPA 2008 event is expected to draw participation from at least 400 companies from Thailand, Korea, Japan, Taiwan, Hong Kong, China, Malaysia, India, Australia, New Zealand, Germany, Italy, the United States and Canada. The fair is also expected to draw more than 17,000 trade visitors from Asean and South Asia, former Soviet states, the Middle East, South Africa, Japan, Korea, the US, the UK, Germany and Italy.

Bangkok Post