Thailand May Land Competing Auto Research Centers

Thailand’s auto industry appears on track to go from not having a vehicle research and testing center to have two competing government and privately operated facilities.

The English-language The Nation newspaper reports the government’s Office of Industrial Economics and Office of the National Economic and Social Development Board are about to propose a TB8 billion ($270.2 million) vehicle research and testing center.

The proposal going to the Strategic Committee for Reconstruction and Future Development coincides with a similar private-sector project in Buri Ram, 230 miles (368 km) northeast of Bangkok, that would cost about the same.

Office of Industrial Economics Director Nattapon Nattasomboon tells the newspaper that under the proposal by his department, part of the Ministry of Industry, TB3.2 billion ($106.2 million) would be spent on the research center and TB4.9 billion ($164 million) for a test track.

Nattapon says the committee initially is expected to approve TB2.38 billion ($80 million) to set up a research and testing center to comply with standards certified for the Association of Southeast Asian Nations Economic Community in 2015.

There are three proposed locations for the government center: the Gateway City Industrial Estate in Chachoengsao province and the Hemaraj Industrial Estate and Amata City Industrial Estate, both in Chon Buri province.

But Newin Chidchob, the man behind a proposal to build a world-class motor-racing circuit in Buri Ram, tells the newspaper he believes his planned research and testing center could be completed before the government can get its facility up and running.

Newin plans to build a TB2 billion ($67.2 million) racing circuit that will meet the standards of the Federation International de l'Automobile and the International Motorcycling Federation.

He tells The Nation an automobile-testing center is a viable project, given the needs of the growing Thai automobile-assembly industry. A feasibility study of the project now under way is expected to be completed soon.

Total cost of the project could be less than TB10 billion ($336 million), with 40% of the investment from foreigners and the rest from his family and local business alliances.

Newin says his test center project is a way for the private sector to avoid the red-tape delays typical of state-initiated projects.