Thailand toward Establishment as an Aviation OEM Hub

Thailand is making all efforts to establish themselves as the global aviation OEM hub in the entire Asia Pacific region. But for that, the government will require moving in a strategic direction to convert the country into an operating hub having quality supply chain and highly skilled workforce. Thailand’s strategic geographic location gives it a competitive edge. Its deep sea port is capable of accommodating transport that is critical for large aircraft components. Moreover, the recent transportation infrastructure development projects like high-speed rail, connecting the major airports will provide great flexibility.  Also, the government has identified many OEM Thailand industries, which includes aerospace. In fact, it is offering tax incentives, residence permits, and even land ownership to attract foreign investors.

However, while contemplating to become an OEM hub, Thailand will have to overcome two of their major hurdles to attract investment that could establish and retain the country’s reputation. English language barrier and a divided local supply chain infrastructure are currently the two challenges that the country needs to resolve.

You might be aware of the typical logistical risks a poor infrastructure can pose. But, convincing the country’s present local operators to make an investment in the new technologies might prove to be more challenging. Since aviation is a niche market, succeeding can be difficult without appropriate incentives.

However, to avoid the requirement of convincing the locals, Thailand is concentrating more on foreign investments for small volumes. That being said, without a certified and regulated supply chain, drawing top-tier investors to OEM Thailand market can become quite complicated. It is important to attract aircraft assemblers first and then let the supply chain grow. This way it will be more practical for the small investors and suppliers to lessen their risk.

Presently, efforts are being made to break the language barrier. English, being the main operating language of the aviation industry, it is crucial to have English literate engineers or mechanics on board.