More manufacturers relocating to Thailand from China, HK

[webfact]

More manufacturers relocating to Thailand from China, HK

By THE NATION

 

FILE photo

 

An increasing number of manufacturers are moving their production bases from China and Hong Kong to Thailand due to the US-China trade war, the Board of Investment (BOI) has said.

 

BOI deputy secretary-general Narit Therdsteerasukdi said recently that investment applications last year from Chinese and Hong Kong investors for BOI tax privileges had reached a 10-year high of 164 projects worth almost Bt60 billion.

 

He added that the number of such applications continued to increase during the first half of this year, totalling 111 projects worth more than Bt31 billion.

Most of them are in the auto parts, plastics, machinery and furniture businesses.

 

He added that the production bases of Taiwanese and South Korean companies in China, which export to the US, are also relocating their plants to Asean countries, including Thailand.

 

Last month, the BOI approved Thailand Plus incentives, aimed at attracting foreign businesses to relocate and expedite large-scale investment as well as strengthen workforce development.

 

These new measures include an enhanced incentive package for projects worth at least Bt1 billion of investment, additional incentives for companies engaged in human resource development, and revised incentives to encourage corporates to set up STEM (Science, Technology, Engineering and Mathematics), or educational or vocational training institutions.

 

BOI will also launch a roadshow to woo investments from China and Hong Kong next year.

 

Deputy Prime Minister Somkid Jatusripitak is visiting Guangdong province in China and the Hong Kong Special Administrative Region from Sunday (October 20) to October 25.

 

The visit aims to promote relations and strengthen collaboration between Thailand and China.

 

He is accompanied by executives from the Eastern Economic Corridor Office and BOI.

 

According to BOI data, the total value of applications received by the BOI from foreign investors more than doubled to Bt147.2 billion in the first half of 2019, as compared to the corresponding period last year.

 

In terms of the source of the foreign direct investment applications, out of a total of 468 projects, Japanese companies ranked first with applications for 114 projects worth Bt42.45 billion, followed by China, with 81 projects worth 24.28 billion baht, and Switzerland, with 10 projects worth Bt11.44 billion.

 

Source: https://www.nationthailand.com/business/30377526

 

-- © Copyright The Nation Thailand 2019-10-21

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[Oziex1]

Is this story going to pass the fake news test? 

[meechai]

If not fake news then it could be another nail in the clean air coffin

[mikebell]

Well it fits in with the Chinese idea of colonisation by finance.  However, I can't see why the Chinese would want to hire Thais whose wages would be relatively higher than in China and whose technical expertise is on a par with that of an over-ripe banana.

[ChipButty]

If the Chinese do move in it means the Thai's might have to work for a living

[Isaan sailor]

With a 6-high on the Baht...this remains doubtful. 

[BestB]

I guess general was right, Communists are coming to take over ????

[Thian]

I don't understand the Thai market at all....take the lazyboy recliners...a leather model costs 60-90k baht, assembled (or built?) in Thailand.

 

In Europe they cost 1100 euro = 37.000 baht. included 21% vat.

 

https://www.eijerkamp.nl/la-z-boy-fauteuil-pinnacle-22738.html

Edited October 21, 2019 by Thian

[Cadbury]

4 hours ago, webfact said:

More manufacturers relocating to Thailand from China, HK

Might I suggest these are the scraps of Chinese manufacturers who have not already moved or been denied access to other preferred locations such as Vietnam and Malaysia.

Why else would they go to a country with higher wages, lower productivity, higher value currency. And one that uses imported and itinerant foreign workers and has complex and onerous visa laws for employers of such foreign workers.

Thailand is being used as last resort and is desperate to accept what's left of dodgy tinpot Chinese manufacturers. The best of the Chinese manufacturers have long gone elsewhere.

 

Edited October 21, 2019 by Cadbury

[lapamita]

3 hours ago, Oziex1 said:

Is this story going to pass the fake news test? 

Yes this is passing.

 

Its quiet a small number ,increasing but small, relocation from China  is a hudge amount of money ,and only a small fraction comming to thailand.

Malaysia get much higher investments due to relocations ,and sure other too....

so the number is relativ

[ivor bigun]

I don't understand the Thai market at all....take the lazyboy recliners...a leather model costs 60-90k baht, assembled (or built?) in Thailand.
 
In Europe they cost 1100 euro = 37.000 baht. included 21% vat.
 
https://www.eijerkamp.nl/la-z-boy-fauteuil-pinnacle-22738.html

Its the same with some of the cheap packet meals made here,cost over 40 baht yet when i was on holiday in Britain 1 pound in the pound store,yet they have to be flown there and import duty paid ,crazy.

Sent from my SM-A720F using Thailand Forum - Thaivisa mobile app

[Jessi]

17 minutes ago, Thian said:

I don't understand the Thai market at all....take the lazyboy recliners...a leather model costs 60-90k baht, assembled (or built?) in Thailand.

 

In Europe they cost 1100 euro = 37.000 baht. included 21% vat.

 

https://www.eijerkamp.nl/la-z-boy-fauteuil-pinnacle-22738.html

Its called Thai Greed.

[Jessi]

3 hours ago, Oziex1 said:

Is this story going to pass the fake news test? 

This is fake news!!!! Its designed to keep the Thais

like mushrooms.... Kept in the dark and fed on Bullsh!t.

[RichardColeman]

Sounds like Turkeys advertising Christmas again

[Sticky Wicket]

8 minutes ago, Jessi said:

Its called Thai Greed.

Mainly Chinese Thai greed

I've found them to be far greedier than the average Somchai

[Caldera]

Not exactly high tech, the industries listed in the article. I wouldn't bank my future on that (and on a trade war that might be resolved at some point).

[happy chappie]

If true it's great news that needs to be relayed to mr trump and he will hopefully whack some duty on Thai exports to the US.hes built a financial wall on the Chinese and their dirty business games,now Thailand are helping the Chinese dig tunnels under it.

come on trump,they are trying to outsmart you by exporting through the back door.show Thailand you mean business.

[taichiplanet]

The Chinese working model for projects in other countries is to bring all their own equipment, staff and even food. They then set up their own stores for the workers, so almost nothing goes back into the 'occupied' countries economy; other than debt!

 

Edited October 21, 2019 by taichiplanet

[Thian]

5 hours ago, happy chappie said:

If true it's great news that needs to be relayed to mr trump and he will hopefully whack some duty on Thai exports to the US.hes built a financial wall on the Chinese and their dirty business games,now Thailand are helping the Chinese dig tunnels under it.

come on trump,they are trying to outsmart you by exporting through the back door.show Thailand you mean business.

He might do so, those moving companies better choose a more safe location in Asia...and where the working ethos also is more professional.

[VocalNeal]

WOW. Maybe they will get to use all those premises at Muang Thon Thani that they built prior to 97. 

[UTH001]

5 hours ago, mikebell said:

Well it fits in with the Chinese idea of colonisation by finance.  However, I can't see why the Chinese would want to hire Thais whose wages would be relatively higher than in China and whose technical expertise is on a par with that of an over-ripe banana.

Wages in some areas in China (like Guangzhou etc) are higher than average Thai wages these days. Reason for low value manufacturing to move abroad. But instead of Thailand, I would have expected Chinese companies to move to Vietnam or Burma instead because of lower wages there?

[Puchaiyank]

The Chinese do not respect their own environment...they are sure to pollute both air and water...

[Traubert]

5 hours ago, Puchaiyank said:

The Chinese do not respect their own environment...they are sure to pollute both air and water...

Twenty years ago maybe.

 

These days China does more than any other country in the world to protect the environment.

 

No one wears a Mao suit now and coolie hats are for street sweepers.

[Puchaiyank]

1 hour ago, Traubert said:

Twenty years ago maybe.

 

These days China does more than any other country in the world to protect the environment.

 

No one wears a Mao suit now and coolie hats are for street sweepers.

I always enjoy your comments...because you never do your homework...China is the number 1 air polluting country in the world...double the pollution of the number 2 country...

 

Google it...????

[Caldera]

2 hours ago, Traubert said:

These days China does more than any other country in the world to protect the environment.

Do you have anything to back this up? Preferably from a source not known to broadcast Chinese propaganda? Sounds like <deleted> to me.

 

[Tayaout]

12 hours ago, Thian said:

I don't understand the Thai market at all....take the lazyboy recliners...a leather model costs 60-90k baht, assembled (or built?) in Thailand.

 

In Europe they cost 1100 euro = 37.000 baht. included 21% vat.

 

https://www.eijerkamp.nl/la-z-boy-fauteuil-pinnacle-22738.html

Simple there is less demand so higher production cost per unit since manufacturers can only purchase smaller batch of raw material at a time. 

[Tayaout]

1 hour ago, Puchaiyank said:

I always enjoy your comments...because you never do your homework...China is the number 1 air polluting country in the world...double the pollution of the number 2 country...

 

Google it...????

Don't forget most of that pollution is in fact subcontracted from the west. 

They do invest heavily in renewable energy. 

https://www.forbes.com/sites/dominicdudley/2019/01/11/china-renewable-energy-superpower/#3d08f6b6745a

[Thian]

5 hours ago, Tayaout said:

Simple there is less demand so higher production cost per unit since manufacturers can only purchase smaller batch of raw material at a time. 

You mean there's less demand in Thailand? I don't think so, that's why you see them being sold in every mall. I have never seen them in a furniture mall in holland plus we have many more good brands for recliners...thailand has only 1.

 

And those chairs are made in thailand, never heard of them being produced in holland or europe but i might be wrong in that.

 

 

[Tayaout]

3 minutes ago, Thian said:

You mean there's less demand in Thailand? I don't think so, that's why you see them being sold in every mall. I have never seen them in a furniture mall in holland plus we have many more good brands for recliners...thailand has only 1.

 

And those chairs are made in thailand, never heard of them being produced in holland or europe but i might be wrong in that.

 

 

Never saw a Thai with a leather recliner when virtually every western home has 1 or more. 

[Yinn]

16 hours ago, Oziex1 said:

Is this story going to pass the fake news test? 

 

15 hours ago, mikebell said:

However, I can't see why the Chinese would want to hire Thais whose wages would be relatively higher than in China and whose technical expertise is on a par with that of an over-ripe banana.

 

13 hours ago, Isaan sailor said:

With a 6-high on the Baht...this remains doubtful. 

 

13 hours ago, Cadbury said:

Might I suggest these are the scraps of Chinese manufacturers who have not already moved or been denied access to other preferred locations such as Vietnam and Malaysia.

 

Thailand is being used as last resort and is desperate to accept what's left of dodgy tinpot Chinese manufacturers. 

 

 

13 hours ago, Jessi said:

This is fake news!!!! Its designed to keep the Thais

like mushrooms.... Kept in the dark and fed on Bullsh!t.

 

11 hours ago, Caldera said:

Not exactly high tech, the industries listed in the article. I wouldn't bank my future on that (and on a trade war that might be resolved at some point).

I know a lot of TVF members are the bar people with the bar “friends.” That your life, you not know about...

 

Thailand is Asia's most developed auto parts market and a hub for the likes of Toyota, Honda and Mercedes-Benz, making cars and car parts the country's No. 1 export in 2012. The floods in 2011 disrupted more than 100 components makers.

 

 Thailand is the second-largest exporter of computer hard drives and makers other components used in personal computers. Thailand’s important and fast-growing production industries are machinery and electric tools, furniture and wood products, canned food, and plastic products, while production industries that account for major export items are high-technology products such as integrated circuits and parts, hard disc drives, electrical appliances, vehicles, and vehicle parts. 

 

https://www.bmwgroup-werke.com/rayong/en.html

 

https://www.mercedes-benz.co.th/en/passengercars/the-brand/about-us/about-us.module.html

 

And much more. You guys talk like you know, but you not know.