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sietau

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Posts posted by sietau

  1. What a refreshing, informative article. Then I noticed that it wasn't written by Thais or byThe Nation amateurs. The article points out clearly why Thailand is a huge risk for foreign firms. Concentrating a large percentage of supply chain in a very poorly managed country with many risk exposures, political, infrastructure, geography, weather, education level, ..etc. is just very poor management. Seeking better margins on the back of historically lower labor costs exclusively is very myopic. Public foreign companies with major dependencies and operations in Thailand should be scrutinized by their boards as to whether they performed adequate due diligence and how the money is accounted and reconciled in these operations.

    Thailand has essentially outlived its usefulness as a manufacturing and distribution hub. They have continually engaged in major examples of risk. coups, political and military uncertainty, military governments, civil strife and almost daily killings in the south, airport closings, civil unrest, bloodshed, and killings, blocking commercial activity, inadequate application of law, blatant corruption and graft, absence of recourse, eg..nightclub fires and mass deaths, unregulated worker and student vans and major deaths, refusal to apply law and ignorance of building safety and zoning considerations. Many more and last but not least, the country's inability to protect its citizens and residents from safety precautions and rapid recovery and any understanding of DRP and BCP (Disaster Recovery Planning and Business Continuity Planning). Think about the standards and procedures implemented to do post flood clean up in clean factories, and warehouses. All of this is magnified considerably by poor communication, misrepresentation of news, facts, censorship, suppression of information, opaque business operations, and the absence of disclosure.

    Mentioning a few side points, there were previous photos and content showing Thai factory workers "repairing soaked, wet" , and irreparably damaged hard drive hardware.This article also points out something that was shocking about the low level of awareness and comprehension of Thais by indicating that some Thai manager thought that it was great that "divers" had fished out hard drives to "recover and repair hard drive data." What a preposterous thing to do! Just think about the QA and reliability of those products. If you were running a major foreign company, why would you invest in Thailand? Why would you keep repeating the same decisions and investments expecting the results to be different?

    Basically, one reason, labor cost. I am sure you know the difference in labor cost between Thailand and the rest of the world. Mark my word,Thailand will recover.They will clean up the mess and thousands more will probably die as a result of the floods, but they will comeback.

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