A business plan on opening a motorcycle assembly plant in Thailand for the assembly and sales of motorcycles in Thailand, that also complies with the ASEAN-Free Trade Agreement (AFTA) requirements

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Sangaran, Judah Immanuel (2020) A business plan on opening a motorcycle assembly plant in Thailand for the assembly and sales of motorcycles in Thailand, that also complies with the ASEAN-Free Trade Agreement (AFTA) requirements. [Dissertation (University of Nottingham only)]

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Abstract

Ducati Motor Holdings S.p.A. (Italy), Triumph Ltd (UK), Bayerische Motoren Werke AG (BMW German), Kawasaki Heavy Industries Ltd (Kawasaki Motorcycles Japan),and Harley Davidson Inc (USA) have an assembly plant in Thailand. By having their plants in Thailand, they enjoy the Thailand Board of Investment (BOI) tax exemption schemes, and also the Common Effective Preferential Tariff (CEPT) Scheme for AFTA (ASEAN-Free Trade Agreement).

Under this scheme, ten ASEAN countries comprising of Brunei Darussalam, Indonesia, Malaysia, Thailand, the Philippines, Singapore, Vietnam, Cambodia, Laos, and Myanmar enjoy an import tariff of between zero to five percent (AFTA Council, 2019). The capital needed for the construction of the assembly line is THB400 million, as shown in the “finance” chapter. With the start of development and approvals from relevant government bodies, it will take approximately 12monthsfor the assembly plant to be ready and functional.

MOTOCICLO will be wholly owned by the holding company in Italy and will be registered with the Board of Investment (BOI) Thailand under clause 4.7.2“Manufacturing of Motorcycle Engines” Activities of Eligible for Promotion Section 4 (The Board of Investment Thailand, 2019).By being registered with BOI, MOTOCICLO will enjoy corporate tax rebates and easy visa application for expatriate workers, and the opening of an assembly plant in Thailand will also help the labour market and the Thailand economy.

Item Type: Dissertation (University of Nottingham only)
Keywords: motorcycle assembly plant, Thailand economy, labour market, corporate tax, business plan
Depositing User: Sangaran, Judah
Date Deposited: 04 Aug 2020 02:28
Last Modified: 04 Aug 2020 08:00
URI: https://eprints.nottingham.ac.uk/id/eprint/60022

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