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Essay / Auto parts - 1128
There is no denying the obvious boom experienced by Asian economies in recent decades. After intense research into this economic prosperity, it makes perfect sense that interest was generated. Before setting up an auto parts factory somewhere in Asia, it is important to study the business environment of the countries in question. Indonesia, Thailand, and Vietnam are all Asian countries with unique strengths and weaknesses, all of which need to be addressed before Worldwide Khan takes action. Over the past decade, the Vietnamese economy has grown at a particularly rapid pace. However, Vietnam's automobile industry has not grown at the same pace. In 1991, the Vietnamese government introduced foreign funds to help develop the automobile manufacturing and assembly industry. There are currently only a few hundred auto parts manufacturing companies, most of which are small manufacturing companies with weak technology and production capacity. These figures represent a fifth of Indonesia's production base and a fifteenth of Thailand's. In Vietnam, auto parts generally rely on import, as the automotive supply base is extremely limited. Although there are currently only three foreign auto parts manufacturers in Vietnam, meaning less competition, there are obviously crucial reasons why few manufacturers come to do business there. Due to the tiny size of the Vietnamese market as well as the lack of spare parts supply base, one can hardly question why this place may not be the ideal Asian country to set up an auto parts factory for Worldwide Khan, LLC. According to Toyota Vietnam General Manager Yoshihisa Maruta, "a long-term development plan, stable policies and greater incentives for...... middle of paper ......g Deep Sea Port (l one of the world's major seaports) make auto parts exports exceptionally efficient, saving market competitors time and money. All of these factors contribute to the obvious opportunities available and reasons for a foreign investor to enter the Thai market. After absorbing the various pros and cons that would come from running auto parts manufacturing in each of these countries, it is in my opinion that Thailand is the place with the most potential. Managing such business in Vietnam would require taking on a baggage that could generate a lot of investment, with little reward to be had. Indonesia appears to be a serious competitor, comparable to the strengths offered by Thailand. However, the Thai government's encouraging support for its automobile industry is what strongly differentiates it from Indonesia..