Skills study identifying steps to strengthen Thai automotive industry

Study carried out by the ILO’s Automotive Supply Chain Programme in Thailand funded by the Government of Japan seeks to help the sector navigate the rapidly changing business landscape.

Press release | Bangkok, Thailand | 06 February 2024
Workers assembling chassis of pickup cars at an automotive factory, Thailand.
©Shutterstock
Bangkok, Thailand (ILO News) - An assessment of the skills requirements and shortfalls in Thailand's automotive sector is set to help the industry make better decisions on the training programmes and policies needed in a rapidly shifting business environment.

On 6 February 2024, stakeholders met in Bangkok to discuss and provide feedback on the initial findings and recommendations of the assessment. The report is expected to be finalized by April 2024.

The assessment is being carried out by the International Labour Organization’s (ILO) ‘Skills Development and Responsible Business Conduct for Transition’ project funded by the Japanese Ministry of Economy, Trade and Industry in collaboration with the industry, employers and workers organizations.

Speaking at the event, Ariya Tuanthong, Deputy Vice President of the Personnel Development Department at the Thai Auto-Parts Manufacturers Association (TAPMA) highlighted how the move to electric vehicles, the emergence of industry 4.0 and the increasing cost of wages and materials were significantly impacting the Thai automotive industry. “The way to move forward is to ensure the workforce has the know-how and skills required,” he said.

Participants discussed the next steps proposed in the assessment that include further investment in training and apprenticeships, increased policy influence, strengthening cooperation between ministries and the sector as well as concerted efforts to identify vulnerable individuals and aid their adaptation to industry changes.

Highlighting the significance of skill development, Teerasak Yupech, Director of the Automotive Human Resources Department Academy (AHRDA), stressed its pivotal role in fostering sustainability within companies, “In order to strive and stay competitive in the market, the focus must be on the workforce. Workers have the responsibility to carry out their functions, but must receive opportunities for development,” he said.

In addition to skills needs, the assessment also looks at how business & human rights as well as responsible business conduct can be more widely understood and applied in the automotive supply chain. A tool will be developed to improve social dialogue in the automotive sector, addressing barriers to responsible business conduct.

“Business and human rights considerations are important to all industries and especially those with large export markets. Incorporating them into the supply chain will help build a more competitive, resilient and inclusive Thai automotive industry for the lasting benefit of all stakeholders within it,” said Gizem Karsli, Project Technical Officer of the Skills Development and Responsible Business Conduct for Transition project at the International Labour Organization.

A group photo of workshop participants, Bangkok, Thailand. © ILO

For further information please contact:

Gizem Karsli
Project Technical Officer
Email: karsli@ilo.org