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Global Vehicle Development: Part III Asia
Thailand

Formerly known as Siam, the Kingdom of Thailand comprises approximately 322,000 km2 (124,000 mi2), 38% of which is under cultivation and 20% forested. There are approximately 33.8 million persons who are said to be employed; however, much employment is on a seasonal basis. At 62%, agriculture accounts for the largest percentage of employment. Industry follows at 13%, commerce 11%, services (including government) 14%. The population 63 million.

GDP is $125 billion, of which the government consumes about 9.7%. Per-capita income is roughly $2000. Thailand's top income tax rate is 37%, the average rate 5%. Along with a top corporate rate of 30% are a capital gains tax of 30% and a value added tax of 10%.

Overseas Chinese account for at least half of the country's wealth.

The automobile industry includes up to 20 small-scale assembly plants operating as franchises for most of the major car and truck manufacturers. The local content requirement is 33%. Traffic in the capital city of Bangkok is improving, but the city is still susceptible to flooding during the monsoon season.

The Japanese factories in Thailand were targeted to supply the whole of Southeast Asia. But in Indonesia and Malaysia high tariffs designed to protect the native car industry rule that out. Pickup trucks account for 25.5% of the market. Bangkok has 2.4 million vehicles registered with inter-city speeds of 5-10 mph due to traffic congestion.

Chrysler imports vehicles from the United States. Ford currently assembles pickup trucks in Thailand, and General Motors has plans in the works for an assembly plant as well.

Thailand has approximately 80,000 km (50,000 mi) of highways, of which less than half is paved.

Japan dominates Thailand's trade, as it does in many other countries of Southeast Asia. At 30%, Japan accounts for most Thai imports, followed by the United States at 12%, Singapore at 6%, Germany at 5%, and Taiwan at 5%. The United States accounts for the largest percentage of Thai exports.

Passenger Car Production, by Manufacturer
(thousands of units)
Manufacturer 1998 2002 2005
Toyota 25 50 70
Honda 25 60 85
Mitsubishi (MMC Sittipol) 10 20 30
Nissan 10 20 25
Ford/Mazda 4 6 7
Mercedes-Benz 4 6 7
Ford/Volvo 3 6 7
General Motors 2 52 55
Hyundia 1 0 0
Others 2 5 6
Total 86 225 292

Country profiles were provided by Raymond Champagne

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