Panasonic to cut 800 jobs in Thailand, move some production to Vietnam next year

 

FILE PHOTO: The Panasonic booth is shown during the 2020 CES in Las Vegas, Nevada, U.S. January 7, 2020. REUTERS/Steve Marcus

 

BANGKOK (Reuters) - Japanese appliance-maker Panasonic Corp <6752.T> on Thursday said that next year it will move its Thai-based production of refrigerators and washing machines to Vietnam, laying off some 800 workers.

 

"Panasonic will reorganize its white goods production sites in Southeast Asia, and transfer the production of washing machines and refrigerators in Thailand to Vietnam," the company said in an statement emailed to Reuters.

 

Panasonic will dismiss about 800 workers in Thailand, a company spokeswoman told Reuters, adding that the move is part of its plan to improve cost efficiency.

 

Panasonic would try to place some of the workers in other jobs based on their qualifications, the spokeswoman said.

 

Panasonic Appliances (Thailand) and a research and development centre will close by the end of March 2021.

 

After the closures, Panasonic will still have around 13,700 workers involved in the manufacture of small appliances and batteries in Thailand.

 

(Reporting by Chayut Setboonsarng; Editing by Tom Hogue)

 

-- © Copyright Reuters 2020-05-21

 

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Don't blame them. Probably less hassle (with thai customs restrictions (to do business elsewhere.

30 minutes ago, webfact said:

Panasonic will dismiss about 800 workers in Thailand, a company spokeswoman told Reuters, adding that the move is part of its plan to improve cost efficiency.

Maybe also has something to do with Vietnam's distancing from China.

 

Japanese firms are maybe reluctant to work with Thailand, because they keep bowing down to their Chinese masters.

Thailand makes doing business and visas problematic...Vietnam encourages international commerce...many more large businesses could follow...many more Thai workers without a job...way to go Thailand...

Vietnam could be the new Thailand if it plays it cards right. One Japanese firm is a trickle, but if Panasonic's experience in workforce quality, expatriate management lifestyle, visa issuance, etc. is positive, it will become a flood.

 

Thailand risks becoming "yesterday's manufacturing and FDI hub" if it isn't careful.

Hopefully all the rich hisos are happy with the high baht this is what happens when your exports get too expensive this is only the start of things  tourists wont come exports will slowly disappear but the elite dont care its a shame and the poor thai people will suffer

I think this could become common over the coming years with regards to Vietnam. It seems like a country with a determined and creative workforce, simple visa rules, a currency not falsely manipulated and a government that is welcoming foreign business and operations.

 

All very different to Thailand since 2014. 

There is a very clear process that countries go through economically.

First they start out as agrarian, or raw material economies.

As they start to industrialize, they start producing textiles.

Textile manufacturers are sensitive to labour costs. They move their manufacturing to countries with cheaper labour.

After textiles, simple electrical goods are made. As labour costs become uncompetitive, the country is forced to add value and start manufacturing electronic goods. And so it goes.

Most developed countries now have service industries which have more value than manufacturing. This decision of Panasonic is just a natural reaction to rising wages and fits perfectly the model of increasing added value as labour costs become uncompetitive.

 

Watch Africa take off when China becomes more developed.

Edited May 21, 20206 yr by KarenBravo

Vietnamese wages are a lot lower than Thai's.  These simple washing machines can be made there more economically.  It is as simple as that

They won't be back either.  

48 minutes ago, Blumpie said:

They won't be back either.  

Like a lot of former tourists.

6 hours ago, stephenterry said:

Don't blame them. Probably less hassle (with thai customs restrictions (to do business elsewhere.

Nothing to do with the  38 baht=£1? The thais have priced themselves out the market,you can bet all the hierarchy will be changing their baht for for ex soon then watch the baht collapse,to quote maggie, "you can,t buck the market "( as much as the shiny added spiv s in the city think they can )

19 minutes ago, kingdong said:

Like a lot of former tourists.

I agree a lot of expats won't be back, but you are confusing tourism with living.  A lot of tourists will be back because they really don't see what is going on in Thailand to expats.  

 

The tourism has evolved from backpacker trash to expats who found a jewel, to a total ruination of the entire country by extreme tourism.

 

If you're still in Thailand, enjoy the next few years because it won't last and this is the last hurrah. 

Edited May 21, 20206 yr by Blumpie

Well, the Vietnamese tend to be good engineers, while the Thais are.. Thais. "Mai pen rai".

25 minutes ago, Boomer6969 said:

Well, the Vietnamese tend to be good engineers, while the Thais are.. Thais. "Mai pen rai".

Are the Thai engineers? They even can't develop a.....sidewalk...in our new mubahn they are cracked and crooked everywhere but worst is that they suddenly end! Then we have to walk on the road while there's plenty space for a sidewalk.

 

I can totally understand the move to Vietnam, they work much harder, are cheaper, not lazy and stubborn...

As usual , there're lots of negative speculation from some members here.

 

It's written that Pana is moving due to cost efficiency which means Thai baht is strong and maybe Thai wages are going up.

 

During this pandemic, the Thai baht hasn't dropped much but will strengthen further once their tourism industry gets moving again soon. Go figure,

Edited May 21, 20206 yr by EricTh

Most likely low paying jobs. Something Thailand or any other country should not cry about.  

14 minutes ago, anon7854 said:

Most likely low paying jobs. Something Thailand or any other country should not cry about.  

isn't this similar to what maga-man is complaining about?  manufacturing jobs that provide a decent wage being siphoned off by international corporations, outsourced to communist countries providing slave labor?

1 hour ago, fruitman said:

Are the Thai engineers? They even can't develop a.....sidewalk...in our new mubahn they are cracked and crooked everywhere but worst is that they suddenly end! Then we have to walk on the road while there's plenty space for a sidewalk.

 

I can totally understand the move to Vietnam, they work much harder, are cheaper, not lazy and stubborn...

Having travelled Vietnam, I can say without a doubt that the younger generation is much better educated than the Thais.

you can actually carry on an intelligent conversation with the Vietnamese, unlike the Thais.

and you don't see a migrant workforce, like in Thailand. The are hard working and happy to have a job. Unlike Thailand who feel they are above this type of work.

 

3 hours ago, Blumpie said:

I agree a lot of expats won't be back, but you are confusing tourism with living.  A lot of tourists will be back because they really don't see what is going on in Thailand to expats.  

If any European or American tourists come back, and experience the Chinese tourist horde - they will surely never come back.

2 hours ago, fruitman said:

Are the Thai engineers? They even can't develop a.....sidewalk...in our new mubahn they are cracked and crooked everywhere but worst is that they suddenly end! Then we have to walk on the road while there's plenty space for a sidewalk.

 

I can totally understand the move to Vietnam, they work much harder, are cheaper, not lazy and stubborn...

Are you for real? Have you been to Vietnam?

 

Because 99% of all sidewalks in Vietnam is non-walkable. They are all converted to motorcycle parking or a small restaurant with hobbit sized plastic chairs.

 

If you live in Vietnam and order a handyman, the work is exactly the same quality if you ordered Somchai and his crew from Isaan.

 

And stubborn..... Try going to the local market and haggle as a foreigner. You will pay 4X more than local price. They feel they loose face if they don't cheat. Sellers attitude is much more Chinese oriented.

 

But for big companies I'm sure Vietnam is much more attractive than Thailand price-wise.

Just another nail in the coffin of Thailand, and unfortunately a lot will follow, but the present Government plays a big part in its downfall... 

13 hours ago, ozz1 said:

Hopefully all the rich hisos are happy with the high baht this is what happens when your exports get too expensive this is only the start of things  tourists wont come exports will slowly disappear but the elite dont care its a shame and the poor thai people will suffer

It's nothing to do with hi-so's, as someone just said, you can't buck the market. The Thai Baht at the moment is the strongest currency in SE Asia and FX experts see it rising further. Thailand certainly hasn't as much debt to sanitize after corona as the West, Johnson has just said that the UK may never recover, America's troubles are just starting and Europe's biggest economy, Germany, has seen an unprecedented drop in exports and although they have a huge industrial basis and less debt than most to fall back on they too will struggle to return to normalcy. Out of interest I follow the FX market, it looks like a roller coaster ride changing drastically every day seemingly without any logic behind it, stock prices up or down don't seem to be connected to the worth of the currency, it's just panic. 

8 hours ago, EricTh said:

As usual , there're lots of negative speculation from some members here.

 

It's written that Pana is moving due to cost efficiency which means Thai baht is strong and maybe Thai wages are going up.

 

During this pandemic, the Thai baht hasn't dropped much but will strengthen further once their tourism industry gets moving again soon. Go figure,

Go figure what?punters are going to flock back to a third world country and pay a lot more for it than their home countries?and where are there tourists going to come from?there's a world wide recession in the post.

12 minutes ago, soalbundy said:

It's nothing to do with hi-so's, as someone just said, you can't buck the market. The Thai Baht at the moment is the strongest currency in SE Asia and FX experts see it rising further. Thailand certainly hasn't as much debt to sanitize after corona as the West, Johnson has just said that the UK may never recover, America's troubles are just starting and Europe's biggest economy, Germany, has seen an unprecedented drop in exports and although they have a huge industrial basis and less debt than most to fall back on they too will struggle to return to normalcy. Out of interest I follow the FX market, it looks like a roller coaster ride changing drastically every day seemingly without any logic behind it, stock prices up or down don't seem to be connected to the worth of the currency, it's just panic. 

Please don't insert logic into the discussion. The former blue collar workers on Thaivisa with little economic knowledge know better. Its all a secret plot of the junta and HiSo to keep the baht up. 

 

They forget the market rules the price of the currency, they also only see the negative news in Thailand but forget about the problems of Europe and Thailand.

 

Like everyone else id love to see a low THB as i get income in euros but that does not mean i forget what has been taught to me when i studied economics.  

7 hours ago, anon7854 said:

Most likely low paying jobs. Something Thailand or any other country should not cry about.  

.......except for the workers that are going to lose their jobs, of course.

6 minutes ago, robblok said:

Please don't insert logic into the discussion. The former blue collar workers on Thaivisa with little economic knowledge know better. Its all a secret plot of the junta and HiSo to keep the baht up. 

 

They forget the market rules the price of the currency, they also only see the negative news in Thailand but forget about the problems of Europe and Thailand.

 

Like everyone else id love to see a low THB as i get income in euros but that does not mean i forget what has been taught to me when i studied economics.  

And how would one define the markets? How about a load of shiny arsed spivs and as for the so called " experts" and analysts how many of them foresaw the 2008 crash,?

10 minutes ago, kingdong said:

And how would one define the markets? How about a load of shiny arsed spivs and as for the so called " experts" and analysts how many of them foresaw the 2008 crash,?

Duh nobody knows for sure else they were all super rich but they do know better then the people here on Thaivisa who have conspiracy theories and don't see the large picture. They also have no formal economic training and can't even work out what affects the currency and what not. I have largely given up trying to explain as it requires people to have basic understanding of economics and not bar stool economics.

 

So you think you know so well how do the HiSo and Government prop up the baht without anyone knowing. (all currency transactions are recorded and can be viewed by anyone with the right tools)

Edited May 22, 20206 yr by robblok

36 minutes ago, robblok said:

Duh nobody knows for sure else they were all super rich but they do know better then the people here on Thaivisa who have conspiracy theories and don't see the large picture. They also have no formal economic training and can't even work out what affects the currency and what not. I have largely given up trying to explain as it requires people to have basic understanding of economics and not bar stool economics.

 

So you think you know so well how do the HiSo and Government prop up the baht without anyone knowing. (all currency transactions are recorded and can be viewed by anyone with the right tools)

While the band keeps playing the spiv s keep dancing,just like the titanic going down.( bit off topic but so,s the eu )

2 minutes ago, kingdong said:

While the band keeps playing the spiv s keep dancing,just like the titanic going down.( bit off topic but so,s the eu )

So you have no answer. Why am i not surprised.

 

Currency transactions are all available for everyone to see. Decisions of the BOT (interest percentage) are also for all to see. So I wonder how this conspiracy works. If there was such a thing there would be proof. 

 

I worked at a stock trading company for 4-5 years and you can see all market transactions. If someone is buying up stock or currency its clearly visible on trading systems. You can see the volume that is traded per day per hour even. So anything out of the ordinary would be spotted.

 

So please tell me how is it done.