The Thai Economy Is In Crisis

[Mid]

Thailand Cuts Benchmark Rate for Fifth Time to Boost Growth

By Anuchit Nguyen

snip

Southeast Asia's second-biggest economy may expand as little as 3.8 percent this year, the slowest pace since 2001, as political conflicts hurt consumer and business confidence. The economy expanded 5 percent last year.

snip

me .........??

never said a thing .

[bingobongo]

so lets see, not only were the farmers votes thrown out by the "glorious coup", but now they are poorer than they were last year at this time, oh these fraudulent elections (if they ever happen) will be quite interesting........

Farmers, exporters face losses

Strong baht has ripple effect on agriculture

Mr Pornsilp said farmers have to sell their products at bargain prices to exporters, who in turn have to sell their agricultural exports for less than their true value so their businesses can survive the financial crunch.

Economists agreed that farm business operators, mostly involved in shrimp, rice, rubber and cassava exports, would be the next victims of the baht's surge. They urged the government to review its policy and solutions to the problem.

http://www.bangkokpost.com/News/18Jul2007_news01.php

Edited July 18, 2007 by bingobongo

[Mid]

... somehow I miss ThaiGoon

Japan's Honda announces output expansion plans for India, Thailand

07.18.07, 12:07 AM ET

TOKYO (Thomson Financial) - Honda Motor Co Ltd, the second-largest Japanese automaker, unveiled Wednesday a fresh growth strategy that will see it boost its car production capacity in India and Thailand while opening a new factory in Argentina.

The moves are designed to offset dwindling domestic demand.

forbes.com

The benefits of this type of investment in assembly and manufacturing on the Thai economy is dubious. Remember when the Thais were bragging on and on about how exports were up "18%" and then someone finally spoke up saying that most of the growth was from foreign invested high tech companies. Those companies were and still are benefiting from cheaper material imports. I don't see how high tech foreign invested companies benefit the majority of Thais when the bulk of the profit is shifted into multinational pockets. I suppose Thai workers may benefit but they are being paid cheap developing world wages to maintain highly profitable foreign enterprise. That's a small slice of the pie when you consider the bigger picture.

Thailand approves Tata truck project

Wed Jul 18, 2007 4:50 PM IST

BANGKOK (Reuters) - Top bus and truck maker, Tata Motors Ltd, won Thai government approval on Wednesday to produce a redesigned pick-up truck in Thailand, where it has a joint venture with Thonburi Assembly.

Tata Motors (Thailand) Ltd, owned 70 percent by the Indian company, planned to invest 1.3 billion baht ($39 million) in the project to produce up to 35,000 1-tonne trucks a year, the state-run Board of Investment said in a statement.

[aznyron]

we all can talk and complain until we are blue in the face but the true fact is the people who can do some thing about will not because that would mean they were wrong so it better to wreck a country then admit your wrong six months ago I posted my opinion on what happening with the thai baht I found out I was right they were buying up USD to strenthen the thai baht but unfortunatly it blew up in there face now what is there next step

[highdiver]

the fact that bored farrangs... some that dont even live in thailand post headlines as to imply that there is a crisis does not make it a crisis .

I hope you don't mean me, by saying that, Highdiver.

I'm not such a negative doom sayer, just a realist registering news, that's all.

You know, after bad times, good times will run around the corner and opportunities will knock on your/our door again.

Like it always will.

Good times, bad times: the good times will stay in our minds forever, the bad ones we'll tell our grandchildren; how badly we suffered...

LaoPo

oh no my dear Laopo.

i enjoy reading your posts as they are factual and your reasoning is based on facts and not an Anti thai.

debating with you even though I may not agree with you I can still benefit from another view.

i did have a few spins with you and I may have contridicted you as you me... but i never recalled you being Anti Thai

the members that i was refering to are the ones that use this thread and infact any thread on thai Visa to post anti thai bashing posts mostly with a false sense of superiority over the thais because they are "western".

I find it hilarious that those members who have ample amounts of time so they can post all day know more about economy then the higly educated and qulified people at the central bank of thailand. or more about investments then reputable firms who do it.

the point of this discussion was if thailand was in a crisis. by all economy basics they are not!!

slow down in some sectors yes, changing world economy impact yes. but then again what countries are not having ups and downs..

is there a crisis no!!

[highdiver]

so lets see, not only were the farmers votes thrown out by the "glorious coup", but now they are poorer than they were last year at this time, oh these fraudulent elections (if they ever happen) will be quite interesting........

Farmers, exporters face losses

Strong baht has ripple effect on agriculture

Mr Pornsilp said farmers have to sell their products at bargain prices to exporters, who in turn have to sell their agricultural exports for less than their true value so their businesses can survive the financial crunch.

Economists agreed that farm business operators, mostly involved in shrimp, rice, rubber and cassava exports, would be the next victims of the baht's surge. They urged the government to review its policy and solutions to the problem.

http://www.bangkokpost.com/News/18Jul2007_news01.php

Rubbish

if you have time to leave your computer and realy go and visit the farming areas you will see they are more prosperous then former years.

midland has told you about the new agri techonlogy. but dont let the fact of life come itno your alternative reality.

I can tell you about what i invested in... rubber and palm oil.

prices are up from last year and rubber prices went up twice in the last month.

rubber farmers here in the south are making a killer profit. in the nackon si tamart area have now 4 new tesco centres. and for the first time in many years there are traffic jams because the farmers have bought new cars.

plam oil demand has risen over the past 3 years and prices are almost doubled. thai plam oil exporters are closing future deals on it as it is so in demand.

the USA has approved imports of tropical Thai fruit for the american market and those who are doing it know to well how many american wholesalers are in thailand on the look out for thai suppliers.

chinese buyers will buy any food produce.. specially rice for the chineese market as they have over 1.5 billion peopple to feed.

here in samui there are 3 shrimp farms. they dont sell anything locally as all the load was prebooked by japanese firms.

cassava in now a very in demand product for producing alternat bio fules and huge companies are roaming thailand looking to buy land for growing cassava or change frams to grow it.

the only ones affected by the rising baht is thoise forign countries that dont have agriculture as they have bcaome so industiralised and service oriented they stopped farming. now they need to pay more to eat.

[LaoPo]

the fact that bored farrangs... some that dont even live in thailand post headlines as to imply that there is a crisis does not make it a crisis .

I hope you don't mean me, by saying that, Highdiver.

I'm not such a negative doom sayer, just a realist registering news, that's all.

You know, after bad times, good times will run around the corner and opportunities will knock on your/our door again.

Like it always will.

Good times, bad times: the good times will stay in our minds forever, the bad ones we'll tell our grandchildren; how badly we suffered...

LaoPo

oh no my dear Laopo.

i enjoy reading your posts as they are factual and your reasoning is based on facts and not an Anti thai.

debating with you even though I may not agree with you I can still benefit from another view.

i did have a few spins with you and I may have contridicted you as you me... but i never recalled you being Anti Thai

the members that i was refering to are the ones that use this thread and infact any thread on thai Visa to post anti thai bashing posts mostly with a false sense of superiority over the thais because they are "western".

I find it hilarious that those members who have ample amounts of time so they can post all day know more about economy then the higly educated and qulified people at the central bank of thailand. or more about investments then reputable firms who do it.

the point of this discussion was if thailand was in a crisis. by all economy basics they are not!!

slow down in some sectors yes, changing world economy impact yes. but then again what countries are not having ups and downs..

is there a crisis no!!

Thanks Highdiver

The word 'crisis' does have many different meanings but I agree Thailand is not in the same -crisis- situation as back in '97 but it's critical and not in a good shape.

What worries me most is the situation for the rural poor people where more than 50% of Thai Labor have to survive; I wonder how many people depend on these 50%+....I fear those people will be the main obstacle for the upcoming new Constitution referendum as well as elections.

The sentence in Bingo's post is right and wrong at the same time; it's not 'next victims' but already 'present victims'...

"Economists agreed that farm business operators, mostly involved in shrimp, rice, rubber and cassava exports, would be the next victims of the baht's surge. They urged the government to review its policy and solutions to the problem."

Most of the economic news in and about Thailand is ALWAYS about industry, investments, car production, High Tech products etc. etc. but almost NEVER about the rural people in agriculture. But hey, yes, I know that 50% produces just a mere 16% of GDP, so what am I talking about?

I said before that IMHO there are two Thailands':

1. Industry related (including service and tourism)

&

2. Agriculture (the vast majority of Thai people....!)

The latter is suffering most.

What annoys me most is the absolute lack of information from the now infamous 'Bureau of Public Relations' of the CNS & Government, HOW to improve the lives of so many Thai in rural areas. It could very well bounce back for the CNS/Government in the future...

NEVER EVER underestimate the power of the people...they will come...sooner or later.

Their only focus is "how can we damage Mr. T. most" and influence the people of Thailand about that and at the same time take the focus away from the REAL problems, Thailand is facing now.

That pi##ses me off, big time !

Rant over.

LaoPo

[bingobongo]

highdiver this is just for you, i hope it reaches you in time......

[highdiver]

the fact that bored farrangs... some that dont even live in thailand post headlines as to imply that there is a crisis does not make it a crisis .

I hope you don't mean me, by saying that, Highdiver.

I'm not such a negative doom sayer, just a realist registering news, that's all.

You know, after bad times, good times will run around the corner and opportunities will knock on your/our door again.

Like it always will.

Good times, bad times: the good times will stay in our minds forever, the bad ones we'll tell our grandchildren; how badly we suffered...

LaoPo

oh no my dear Laopo.

i enjoy reading your posts as they are factual and your reasoning is based on facts and not an Anti thai.

debating with you even though I may not agree with you I can still benefit from another view.

i did have a few spins with you and I may have contridicted you as you me... but i never recalled you being Anti Thai

the members that i was refering to are the ones that use this thread and infact any thread on thai Visa to post anti thai bashing posts mostly with a false sense of superiority over the thais because they are "western".

I find it hilarious that those members who have ample amounts of time so they can post all day know more about economy then the higly educated and qulified people at the central bank of thailand. or more about investments then reputable firms who do it.

the point of this discussion was if thailand was in a crisis. by all economy basics they are not!!

slow down in some sectors yes, changing world economy impact yes. but then again what countries are not having ups and downs..

is there a crisis no!!

Thanks Highdiver

The word 'crisis' does have many different meanings but I agree Thailand is not in the same -crisis- situation as back in '97 but it's critical and not in a good shape.

What worries me most is the situation for the rural poor people where more than 50% of Thai Labor have to survive; I wonder how many people depend on these 50%+....I fear those people will be the main obstacle for the upcoming new Constitution referendum as well as elections.

The sentence in Bingo's post is right and wrong at the same time; it's not 'next victims' but already 'present victims'...

"Economists agreed that farm business operators, mostly involved in shrimp, rice, rubber and cassava exports, would be the next victims of the baht's surge. They urged the government to review its policy and solutions to the problem."

Most of the economic news in and about Thailand is ALWAYS about industry, investments, car production, High Tech products etc. etc. but almost NEVER about the rural people in agriculture. But hey, yes, I know that 50% produces just a mere 16% of GDP, so what am I talking about?

I said before that IMHO there are two Thailands':

1. Industry related (including service and tourism)

&

2. Agriculture (the vast majority of Thai people....!)

The latter is suffering most.

What annoys me most is the absolute lack of information from the now infamous 'Bureau of Public Relations' of the CNS & Government, HOW to improve the lives of so many Thai in rural areas. It could very well bounce back for the CNS/Government in the future...

NEVER EVER underestimate the power of the people...they will come...sooner or later.

Their only focus is "how can we damage Mr. T. most" and influence the people of Thailand about that and at the same time take the focus away from the REAL problems, Thailand is facing now.

That pi##ses me off, big time !

Rant over.

LaoPo

I agree with you about Rural thailand however I beg to differ on the definitions.

Rural thailand consists of farmers and samll non farming comuntites.

As for farming:

not many years ago those comuntites did not even have elctricity but now they have access to information via television and via internet. not all of them use it but they have acess to it wich was not there a few years ago.

mobile phonmes have now made comuniction easier as the land line phones were very scarce.

in general I belive that if you look at things on a multi year level the standrad oflife in most farming comuntities had dveloped and improved.

farmers who own land and are growing high potential produce such as rubber and palm oil are doing extremly well.

so are many agri marine producers. even with the growing rate of the baht a Kilo of shrim inthailand is still 90% cheaper then any European or amercian producer.

As for non farming comnuities. those that do nor own land or for various reasons have taken the path of becoming non agricultural. they are indeed in problem.

I belive that more guidence to thiose comunities is needed as they live in rural areas and goverment investment is needed by giving them lands to develop or developing those comunities.

let us not forget that this problem is not only a problem in thailand and unfortunatly all over the world the rural comunities are making less money then the city folks.

as for your political rants. well we are all entitled to get pi##ses off at something.

[highdiver]

highdiver this is just for you, i hope it reaches you in time......

must be realy feel bad to sell your property last year and have your cash "safely tucked"in a western country...

if only you left it in thailand in baht you would have made a 15%.

if you would have sold your property now with the booming prices it would have made 30%

oh the pain.....

[Mid]

... somehow I miss ThaiGoon

Japan's Honda announces output expansion plans for India, Thailand

07.18.07, 12:07 AM ET

TOKYO (Thomson Financial) - Honda Motor Co Ltd, the second-largest Japanese automaker, unveiled Wednesday a fresh growth strategy that will see it boost its car production capacity in India and Thailand while opening a new factory in Argentina.

The moves are designed to offset dwindling domestic demand.

forbes.com

Thailand approves Tata truck project

Wed Jul 18, 2007 4:50 PM IST

BANGKOK (Reuters) - Top bus and truck maker, Tata Motors Ltd, won Thai government approval on Wednesday to produce a redesigned pick-up truck in Thailand, where it has a joint venture with Thonburi Assembly.

Tata Motors (Thailand) Ltd, owned 70 percent by the Indian company, planned to invest 1.3 billion baht ($39 million) in the project to produce up to 35,000 1-tonne trucks a year, the state-run Board of Investment said in a statement.

Thailand: Mitsubishi to open third plant and launch new SUV

By Automotive World staff writer (MVR)

18 July, 2007

Mitsubishi Motors Corporation (MMC) is planning to establish a new plant in Thailand to meet demand from Europe and other overseas markets, according to a report carried by Bloomberg.

"The company is looking at sites for a new Thai plant," the company's spokesman Masahiro Matsumura said, confirming earlier comments from president Osamu Masuko.

Source: Automotive World

[highdiver]

... somehow I miss ThaiGoon

Japan's Honda announces output expansion plans for India, Thailand

07.18.07, 12:07 AM ET

TOKYO (Thomson Financial) - Honda Motor Co Ltd, the second-largest Japanese automaker, unveiled Wednesday a fresh growth strategy that will see it boost its car production capacity in India and Thailand while opening a new factory in Argentina.

The moves are designed to offset dwindling domestic demand.

forbes.com

Thailand approves Tata truck project

Wed Jul 18, 2007 4:50 PM IST

BANGKOK (Reuters) - Top bus and truck maker, Tata Motors Ltd, won Thai government approval on Wednesday to produce a redesigned pick-up truck in Thailand, where it has a joint venture with Thonburi Assembly.

Tata Motors (Thailand) Ltd, owned 70 percent by the Indian company, planned to invest 1.3 billion baht ($39 million) in the project to produce up to 35,000 1-tonne trucks a year, the state-run Board of Investment said in a statement.

Thailand: Mitsubishi to open third plant and launch new SUV

By Automotive World staff writer (MVR)

18 July, 2007

Mitsubishi Motors Corporation (MMC) is planning to establish a new plant in Thailand to meet demand from Europe and other overseas markets, according to a report carried by Bloomberg.

"The company is looking at sites for a new Thai plant," the company's spokesman Masahiro Matsumura said, confirming earlier comments from president Osamu Masuko.

Source: Automotive World

Mid stop it...

every time you get rosy glases the stock market goes down...

please dont change sides.. you are confusing me

[bingobongo]

have you fed your unicorn in fantasy land today highdiver?

as for the 1.8% unemployment rate, if you include the near destitute farm sector (who might as well be unemployed given their pittance in earnings) that is not what would be considered a "robust middle class". well done junta, well done

Jobless figures show economy under pressure

According to the National Statistical Office, there were 580,000 jobless Thais in May this year, an increase of 80,000 from the same month in 2006.

The Thai Chambers of Commerce University is worried about the current low consumption rate and the absence of new investment in the business sector.

http://www.bangkokpost.com/News/19Jul2007_news22.php

Edited July 18, 2007 by bingobongo

[LaoPo]

Cash-strapped Thai Silp still facing troubles

Rumours that company may shut down again

Workers at the cash-strapped Thai Silp South East Asia Import Export Co still face an uncertain future as the troubled garment manufacturer has yet to get the loans it needs to stay afloat. They are still not certain their salaries, which are due tomorrow, will be paid in cash. Rumours have spread that the factory management may issue them with cheques that may be difficult to cash.

There have also been strong rumours that the factory will shut down again tomorrow.

Deputy Prime Minister Kosit Panpiemras, the industry minister, yesterday denied the government had promised to secure loans for the clothing manufacturer. He said the company would have to work out its financial problems itself. The government would intervene only if the employees require assistance.

Labour and Social Welfare Department chief Phadungsak Thephatsadin na Ayudhya advised the workers to gather at Samut Prakan's provincial labour office if the factory is closed tomorrow.

Labour officials would be there to assist and give advice about compensation and severance pay, he said.

He said the company's future looked grim and it might close down again if it could not find the money to pay the wages bill.

Thai Silp produces clothing for global brands such as Adidas and Nike. It closed down last week because it had money problems, prompting angry protests by the 5,000 employees who had been given no prior warning. The owners decided to resume production after being promised financial assistance.

Bangkok Post/General News, July 19, 2007

rest article here:

http://www.bangkokpost.com/News/19Jul2007_news12.php

LaoPo

[Maxi101]

so lets see, not only were the farmers votes thrown out by the "glorious coup", but now they are poorer than they were last year at this time, oh these fraudulent elections (if they ever happen) will be quite interesting........

Farmers, exporters face losses

Strong baht has ripple effect on agriculture

Mr Pornsilp said farmers have to sell their products at bargain prices to exporters, who in turn have to sell their agricultural exports for less than their true value so their businesses can survive the financial crunch.

Economists agreed that farm business operators, mostly involved in shrimp, rice, rubber and cassava exports, would be the next victims of the baht's surge. They urged the government to review its policy and solutions to the problem.

http://www.bangkokpost.com/News/18Jul2007_news01.php

Rubbish

if you have time to leave your computer and realy go and visit the farming areas you will see they are more prosperous then former years.

midland has told you about the new agri techonlogy. but dont let the fact of life come itno your alternative reality.

I can tell you about what i invested in... rubber and palm oil.

prices are up from last year and rubber prices went up twice in the last month.

rubber farmers here in the south are making a killer profit. in the nackon si tamart area have now 4 new tesco centres. and for the first time in many years there are traffic jams because the farmers have bought new cars.

plam oil demand has risen over the past 3 years and prices are almost doubled. thai plam oil exporters are closing future deals on it as it is so in demand.

the USA has approved imports of tropical Thai fruit for the american market and those who are doing it know to well how many american wholesalers are in thailand on the look out for thai suppliers.

chinese buyers will buy any food produce.. specially rice for the chineese market as they have over 1.5 billion peopple to feed.

here in samui there are 3 shrimp farms. they dont sell anything locally as all the load was prebooked by japanese firms.

cassava in now a very in demand product for producing alternat bio fules and huge companies are roaming thailand looking to buy land for growing cassava or change frams to grow it.

the only ones affected by the rising baht is thoise forign countries that dont have agriculture as they have bcaome so industiralised and service oriented they stopped farming. now they need to pay more to eat.

Mention this in a true farming area and the words might stuck in your ....

[bingobongo]

so is this a rainbow or lollipop highidiver?

Electronics industry competitiveness to decline in 2nd half: KRC

http://etna.mcot.net/query.php?nid=30594

[Mid]

Thai Silp to be shut down Friday

Thu, July 19, 2007 : Last updated 22:45 pm

Crisis-hit Thai Silp South East Asia Import Export Co Ltd has informed him of the decision to shut down the factory on Friday, Labour Minister Apai Chandanachulaka said Thursday. He said that the shutdown would be effective on August 7.

Owner of Thai Silp

"The company has the rights to discontinue the business. The government will then step in to ensure that employees receive legal compensations as well as relocating them to new plants. I believe that all 4,400 workers could have new jobs," he said.

nationmultimedia.com

[bingobongo]

nothing to see here, move along........addidas cuts orders and soon nike will follow

Concern other firms also at risk

Garment-maker to shut next month

Fears of rising unemployment were heightened when Rama Shoes Industry, an original-equipment manufacturer of Nike shoes, suffered a cut in orders. Rama Shoes and its six parts manufacturers employ a total of 6,985 staff, said Labour Minister Apai Chandanachulaka. Rama Shoes alone has more than 4,000 workers.

http://www.nationmultimedia.com/2007/07/20...ss_30041598.php

Edited July 20, 2007 by bingobongo

[Prakanong]

nothing to see here, move along........addidas cuts orders and soon nike will follow

Concern other firms also at risk

Garment-maker to shut next month

Fears of rising unemployment were heightened when Rama Shoes Industry, an original-equipment manufacturer of Nike shoes, suffered a cut in orders. Rama Shoes and its six parts manufacturers employ a total of 6,985 staff, said Labour Minister Apai Chandanachulaka. Rama Shoes alone has more than 4,000 workers.

http://www.nationmultimedia.com/2007/07/20...ss_30041598.php

I could be wrong but I think I might have read in Straits Times yesterday Nike are expanding in Indonesia and maybe Vietnam - anyone have the report?

This is what I continually point to - Thailand is losing against others in the region and really need to take heed - comparitive and competative advantage anyone?

[midas]

I could be wrong but I think I might have read in Straits Times yesterday Nike are expanding in Indonesia and maybe Vietnam - anyone have the report?

This is what I continually point to - Thailand is losing against others in the region and really need to take heed - comparitive and competative advantage anyone?

Prakanong at this point in time it would be interesting to see how countries like Vietnam, Indonesia, Cambodia etc

compare to Thailand in terms of tax incentives, more favorable company ownership rules,

more favorable employment laws etc ?

In other words it may not just be problems with the Baht exchange rate that help company directors

decide to relocate now they are being forced to consider this issue I'm wondering if they might find some other

benefits in neighbouring countries as well ?

[Prakanong]

I could be wrong but I think I might have read in Straits Times yesterday Nike are expanding in Indonesia and maybe Vietnam - anyone have the report?

This is what I continually point to - Thailand is losing against others in the region and really need to take heed - comparitive and competative advantage anyone?

Prakanong at this point in time it would be interesting to see how countries like Vietnam, Indonesia, Cambodia etc

compare to Thailand in terms of tax incentives, more favorable company ownership rules,

more favorable employment laws etc ?

In other words it may not just be problems with the Baht exchange rate that help company directors

decide to relocate now they are being forced to consider this issue I'm wondering if they might find some other

benefits in neighbouring countries as well ?

Could not agree more - big companies will use their treasury to negate as much currency fluctuation as possible and use their different location as well.

I am pretty certain the items you mention are much more important in decision making regarding location.

Cost of labour to at the bottom end of the operations function but its not always about cost is it?

Evaluating country v's country involves the fundamentals plus say Porters diamond or five forces.

Vis a vis Thailand I personally think Vietnam will be the most interesting to watch over the next decade - just a hunch.

Vietnam need the English skills though from my own company's experience there with our Thai manger speaking English to a large room full of Dr's being translated for them by one guy - one industry but the language of a lot of sectors need English.

[highdiver]

nothing to see here, move along........addidas cuts orders and soon nike will follow

Concern other firms also at risk

Garment-maker to shut next month

Fears of rising unemployment were heightened when Rama Shoes Industry, an original-equipment manufacturer of Nike shoes, suffered a cut in orders. Rama Shoes and its six parts manufacturers employ a total of 6,985 staff, said Labour Minister Apai Chandanachulaka. Rama Shoes alone has more than 4,000 workers.

http://www.nationmultimedia.com/2007/07/20...ss_30041598.php

I could be wrong but I think I might have read in Straits Times yesterday Nike are expanding in Indonesia and maybe Vietnam - anyone have the report?

This is what I continually point to - Thailand is losing against others in the region and really need to take heed - comparitive and competative advantage anyone?

what you "continually point to" is that Thailand should remain a "cheap labour" country producing at low cost for the benfefit of the westerners who want to have cheap production.

As i pointed out to you before when the cheap labour ends in neigbouring countries and in Asia they will probebly move to africa or afganistan. producres are allways looking out for cheap labour.

are you sugesting that thailand needs to remain that way.

its time for thais to move on to better and higer industries. thailand should aim to improve should it not.?

with the sure rise in education and new higer technology thailand will have a better advanteage in the future competing with more developed countries.

[bingobongo]

hello highdiver, you linger like a bad stink.......but back to the news.....

Rising baht bites the hands that feed exports

http://www.euro2day.gr/articlesfna/39207016/

[Prakanong]

nothing to see here, move along........addidas cuts orders and soon nike will follow

Concern other firms also at risk

Garment-maker to shut next month

Fears of rising unemployment were heightened when Rama Shoes Industry, an original-equipment manufacturer of Nike shoes, suffered a cut in orders. Rama Shoes and its six parts manufacturers employ a total of 6,985 staff, said Labour Minister Apai Chandanachulaka. Rama Shoes alone has more than 4,000 workers.

http://www.nationmultimedia.com/2007/07/20...ss_30041598.php

I could be wrong but I think I might have read in Straits Times yesterday Nike are expanding in Indonesia and maybe Vietnam - anyone have the report?

This is what I continually point to - Thailand is losing against others in the region and really need to take heed - comparitive and competative advantage anyone?

what you "continually point to" is that Thailand should remain a "cheap labour" country producing at low cost for the benfefit of the westerners who want to have cheap production.

As i pointed out to you before when the cheap labour ends in neigbouring countries and in Asia they will probebly move to africa or afganistan. producres are allways looking out for cheap labour.

are you sugesting that thailand needs to remain that way.

its time for thais to move on to better and higer industries. thailand should aim to improve should it not.?

with the sure rise in education and new higer technology thailand will have a better advanteage in the future competing with more developed countries.

Oh the Harvard MBA chimes in!

You really just do not get it do you - when do I advocate Thailand being a low cost low labour capital country in order to compete?

Please point to this rise in human capital through education you see happening plus the rise of the hi tech high value industry in Thailand - it would be grat to see but the fact is its not happening and Thailand will fall further behind the likes of Singapore and Malaysia and will be overtaken by the likes of Vietnam.

Its you who likes them cheap mate and wish the rural Thai's to remain so!

Your ramblings and lack of wider view make you out a joke on this thread - stay in your cocoon island boi

Edited July 20, 2007 by Prakanong

[Prakanong]

hello highdiver, you linger like a bad stink.......but back to the news.....

Rising baht bites the hands that feed exports

http://www.euro2day.gr/articlesfna/39207016/

Now now - this is a man who thinks comparitive and competative advantage is only about cost ;-)))

Nuff said

[midas]

Vis a vis Thailand I personally think Vietnam will be the most interesting to watch over the next decade - just a hunch.

Vietnam need the English skills though from my own company's experience there with our Thai manger speaking English to a large room full of Dr's being translated for them by one guy - one industry but the language of a lot of sectors need English.

I was in Hanoi just two months ago and without any shadow of a doubt Vietnam is already a serious competitor !

I don't think you should worry about their future linguistic skills - just give them time. The point is I got the impression

that the younger generation understand clearly the need for English and are willing to put in the work to gain the

language skills. Don't forget many of the older generation in Vietnam had to be multilingual i.e. Vietnamese, French and

in some cases even Russian on top of that ! The same goes in Cambodia - when

the youngsters do learn English there I'm sorry to say they have far superior pronunciation of English than the Thai's.

[midas]

what you "continually point to" is that Thailand should remain a "cheap labour" country producing at low cost for the benfefit of the westerners who want to have cheap production.

As i pointed out to you before when the cheap labour ends in neigbouring countries and in Asia they will probebly move to africa or afganistan. producres are allways looking out for cheap labour.

are you sugesting that thailand needs to remain that way.

its time for thais to move on to better and higer industries. thailand should aim to improve should it not.?

with the sure rise in education and new higer technology thailand will have a better advanteage in the future competing with more developed countries.

highdiver perhaps standards of education in this region should be the subject of another comparative study ?

In another recent thread we saw the headlines About 79,000 second graders illiterate

BANGKOK: -- About 79,000 second graders were illiterate, according to the students' scores in the national test.

-- The Nation 2007-07-09

It is all very well to be proud of one's national language but if you want to do business your country must devote

more resources to ensuring you can communicate effectively. Much of the success of Singapore is attributed

to Lee Kuan Yew's recognition that the first priority after independence was to ensure the population had good

English-speaking skills. I feel some of the other countries in this region also recognise this to a greater degree

than the Thai's ever have................

[Prakanong]

Vis a vis Thailand I personally think Vietnam will be the most interesting to watch over the next decade - just a hunch.

Vietnam need the English skills though from my own company's experience there with our Thai manger speaking English to a large room full of Dr's being translated for them by one guy - one industry but the language of a lot of sectors need English.

I was in Hanoi just two months ago and without any shadow of a doubt Vietnam is already a serious competitor !

I don't think you should worry about their future linguistic skills - just give them time. The point is I got the impression

that the younger generation understand clearly the need for English and are willing to put in the work to gain the

language skills. Don't forget many of the older generation in Vietnam had to be multilingual i.e. Vietnamese, French and

in some cases even Russian on top of that ! The same goes in Cambodia - when

the youngsters do learn English there I'm sorry to say they have far superior pronunciation of English than the Thai's.

I have no doubt they will do it and probably accelerate past Thailand with English skilss in doing so!

They are a pretty determined resurceful nation - look at what they achieved in many years of war plus isolation folowing their defeat of the USA?

The ties with the USa are opening up for them - they have a diaspora who remit money and provide educated returners - Vietnam is a good bet to be the powerhouse of the Greater Mekong supplanting Thailand

[Mid]

Thai Silp to be shut down Friday

Thu, July 19, 2007 : Last updated 22:45 pm

Crisis-hit Thai Silp South East Asia Import Export Co Ltd has informed him of the decision to shut down the factory on Friday, Labour Minister Apai Chandanachulaka said Thursday. He said that the shutdown would be effective on August 7.

Owner of Thai Silp

"The company has the rights to discontinue the business. The government will then step in to ensure that employees receive legal compensations as well as relocating them to new plants. I believe that all 4,400 workers could have new jobs," he said.

nationmultimedia.com

Bankers to meet on Thai Silp case Monday

Fri, July 20, 2007 : Last updated 17:41 pm

A group of creditors of financially-troubled Thai Silp South East Asia Import Export Co Ltd will meet with the company's executives again next week.

According a statement from Kasikornbank, the group of creditors consisting of the bank, Bangkok Bank, Siam Commercial Bank, Bank of Ayudhya and HSBC in Thailand hosted an urgent meeting Friday morning to discuss possible solutions for Thai Silp.

"We're committed to lend financial assistance to the company under a sound business plan or a business rehabilitation plan," the statement said.

The financial institutions are ready to send in experts to help the company's owners draft the rehabilitation plan. They will also seek a meeting with the company's owners on Monday for further discussion

.

- The Nation

[LaoPo]

Thai Silp to be shut down Friday

Thu, July 19, 2007 : Last updated 22:45 pm

Crisis-hit Thai Silp South East Asia Import Export Co Ltd has informed him of the decision to shut down the factory on Friday, Labour Minister Apai Chandanachulaka said Thursday. He said that the shutdown would be effective on August 7.

Owner of Thai Silp

"The company has the rights to discontinue the business. The government will then step in to ensure that employees receive legal compensations as well as relocating them to new plants. I believe that all 4,400 workers could have new jobs," he said.

nationmultimedia.com

Bankers to meet on Thai Silp case Monday

Fri, July 20, 2007 : Last updated 17:41 pm

A group of creditors of financially-troubled Thai Silp South East Asia Import Export Co Ltd will meet with the company's executives again next week.

According a statement from Kasikornbank, the group of creditors consisting of the bank, Bangkok Bank, Siam Commercial Bank, Bank of Ayudhya and HSBC in Thailand hosted an urgent meeting Friday morning to discuss possible solutions for Thai Silp.

"We're committed to lend financial assistance to the company under a sound business plan or a business rehabilitation plan," the statement said.

The financial institutions are ready to send in experts to help the company's owners draft the rehabilitation plan. They will also seek a meeting with the company's owners on Monday for further discussion

.

- The Nation

I'm afraid the government AND the bankers will be busy in the coming months with the decline in orders and difficult position for the -sports- shoemakers also, apart from the textile and fashion industry..

The point is that we've seen this situation in the west before and help/subsidize for declining industries, in the end, NEVER helps. It's throwing (collective Tax-)money out of the window.

It's the industries themselves who have to adapt....FAST.

But they prefer to blame circumstances 'beyond' their influence, which isn't true of course (like the western companies did before).

l'Histoire se Repete.

LaoPo