Spatial Dynamics of the Automobile Industry in the Extended Bangkok Metropolitan Region

Abstract

This chapter aims to reveal the spatial dynamics in the Expanded Bangkok Metropolitan Region, through analyzing the development of industrial estates and the geographical expansion of automobile industries centered on Japanese firms. In Thailand, Development of industrial estates in private sector has been more active, compared to public sector. It causes competitions for industrial estate developments. In addition, the industrialization of Eastern Seaboard region initiated by the government has promoted the economic development. As a result, many industrial estates have developed in the Extended Bangkok Metropolitan Region (EBMR). Thailand has developed automobile manufacturers since 1960s centering on Japanese firms. Japanese automobile manufacturer firms considered Thailand as being central to Southeast Asia as a whole, and from the latter half of 1990s the base for exports to global market. In response to this initiative, many automobile component suppliers, both Japanese and local, have established their facilities in Thailand. The sites they chose were mainly located in newly developed industrial estates in the suburbs of Bangkok Metropolitan Region. Increase of Foreign Direct Investment (FDI) into major cities of Southeast Asia after 1980s caused such phenomena as concentration of business operations and increasing population of the new middle class occurring at the heart of such cities, as well as development of industrial estates and expansion of urban areas. Konagaya (1997, 1999) named this sort of new urbanization as “FDI driven New Middle Class City”. While Konagaya (1997, 1999) proposed this concept keeping Jakarta Metropolitan Region in mind, this can be applied to explain phenomena observed in Bangkok Metropolitan Region (BMR) as well. Among others, the automobile industries in Thailand are considered to have contributed much to the expansion of BMR. This is because the industry generally requires various related industries situated nearby and, combined together, their expansion has had an enormous influence over regional economy. In fact, Thailand’s automobile industries have developed mainly driven by FDI, especially from Japan. Many Japanese automobile firms and parts suppliers are located in industrial estates in the suburbs of BMR. In this chapter, attempts are made to reveal the spatial dynamics in the EMBR, through analyzing the development of industrial estates and the geographical expansion of automobile industries centered on Japanese firms.