Tractus representatives, Daniel Bellefleur and Antonio Sequeros, from Indonesia and Vietnam, presented at the Thai Automotive Focus Group (AFG) forum on respective countries’ competitiveness and growth potential in ASEAN at the end of February. Mr. Bellefleur and Mr. Sequeros explained the dynamics of each emerging automotive market and where investment opportunities lie. In Indonesia, opportunities abound for vehicle manufacturers, component suppliers, and service industries geared towards the local market. With a population of over 250 million and an emerging middle class, demand for improved transportation is expected to increase. Although 2015 growth in the automotive industry is to remain subdued due to economic challenges, medium to long term forecasts are bullish as it is estimated that only 80/1,000 people currently own cars. For Vietnam, the country and populace have not yet reached the per capita income levels where families and individuals, en masse, can move from cheaper motorcycles to passenger vehicles. That being said, Vietnam’s strategic location in mainland Southeast Asia, competitive manufacturing costs, and relative  abundance of industrial zones and labor create potential for companies looking to supply parts and components to greater Asia.

About the author