Jetro report on auto parts out today

The Japan External Trade Organisation (Jetro) will today present the results of its survey on the competitiveness of the Asean auto parts industry, at the 5th Auto Supporting Industry Conference.
The conference is taking place on the sidelines of the Bangkok International Motor Show, which runs until April 2.According to previews released yesterday, the survey shows that Asean members need to strengthen their competitiveness in material costs, which are said to be too high. The report said that even though there were some improvements in productivity and more localisation of materials - especially steel and plastics - enhancing the region's strength in moulds, dies and machining would help it get a competitive edge on China and India. Upgrading and using higher technology, as well as maintaining its advantage in the low cost of trained labour, would also help Asean achieve this, said the report. The report revealed that Thailand leads the way in quality and engineering and production systems for most auto products thanks to the transfer of technology from global carmakers and suppliers. Malaysia, Indonesia, and the Philippines, however, are less competitive in these areas. Jetro said the conference would focus on the development of the region's strengths and weaknesses and highlight areas where competitiveness can be improved. Asean participants will gain an understanding of benchmarking for competitiveness and knowledge of the procurement plans of the world's major carmakers. Future trends in technology will also be on the agenda, Jetro said. Jetro said its role in the Asean auto parts industry would focus on improving the quality and cost competitiveness of local parts makers. This will be done through its "skill certification system for the automotive industry" and through upgrading human resources via a "training of the trainers" centre. In this way, Jetro aims to promote the integration of the car market in the Southeast Asia region.
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