Thai manufacturers need to improve competitiveness in EU market

 

   

BANGKOK (NNT) - Thai manufacturers and exporters have to improve their competitiveness in the European market after the EU-Vietnam free-trade agreement (FTA) became effective in August 2020.

 

Trade Negotiations Department Director-General Auramon Supthaweethum said EU buyers may consider importing products from Vietnam instead of Thailand if they find cheaper goods there.

 

According to Mrs Auramon, Thai entrepreneurs need to speed up differentiating their products, focusing more on quality development and standards upgrades as well as optimizing export privileges from existing FTAs between Thailand and key partners.

 

 

-- © Copyright NNT 2021-02-01

 

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The manufacturers can do little about the rise of the baht and decline of the euro and pound. 

Vietnams cheaper.than thailand,i used to bring an empty bag to thailand and take it back full,now i take a full bag( full of things for friends) and bring back an empty one,( and wallet)

An off topic post has been removed. 

5 hours ago, webfact said:

Thai manufacturers and exporters have to improve their competitiveness in the European market after the EU-Vietnam free-trade agreement (FTA) became effective in August 2020

Thailand doesn't do well on a level playing field.

Cheap is one thing but Western & EU citizens look for quality as well as price.

6 hours ago, Curt1591 said:

The manufacturers can do little about the rise of the baht and decline of the euro and pound. 

I would beg to differ on that statement.

There are so many things that the manufacturers could do to make their products more cost effective against the currency fluctuations.

When you are in this kind of situation, you make your Business leaner, meaner and more efficient in order to compete and hold Market share. Many Thais suffer very badly from sitting on their A@@#s and expecting the work to just fall through the door.

In todays Business World, if you are not Lean, Mean and Competetive, you are quickly left behind to wallow in self pity.

The only way forwards is to invest in Technology, and People that can use that Technology.. Thailand lacks the Technology, people, and the will to change, thats why they are now suffering over more progressive Countries such as Vietnam

 

 

23 minutes ago, Cake Monster said:

I would beg to differ on that statement.

There are so many things that the manufacturers could do to make their products more cost effective against the currency fluctuations.

When you are in this kind of situation, you make your Business leaner, meaner and more efficient in order to compete and hold Market share. Many Thais suffer very badly from sitting on their A@@#s and expecting the work to just fall through the door.

In todays Business World, if you are not Lean, Mean and Competetive, you are quickly left behind to wallow in self pity.

The only way forwards is to invest in Technology, and People that can use that Technology.. Thailand lacks the Technology, people, and the will to change, thats why they are now suffering over more progressive Countries such as Vietnam

 

 

Thais also lack critical thinking skills, and the will to do things differently.  Laziness is embedded in the culture~it is essentially a set up for failure.

Unfortunately, there are many Thai companies that have no idea how to handle the increased requirements and bureaucracy of the new EU Regulations, which are in the process of replacing EU Directives. The EU has tightened education requirements for positions such as those Responsible for Regulatory Requirements and a lot of Thai qualifications are not accepted by the EU. Vietnam have been asking for help in trying to access the EU market and have succeeded over the past decade. My experience of their workforce is that they are hard working, willing to learn and willing to follow instructions. Language requirement into the EU for labelling and other documentation put Thailand at a disadvantage.

2 hours ago, Cake Monster said:

I would beg to differ on that statement.

There are so many things that the manufacturers could do to make their products more cost effective against the currency fluctuations.

When you are in this kind of situation, you make your Business leaner, meaner and more efficient in order to compete and hold Market share. Many Thais suffer very badly from sitting on their A@@#s and expecting the work to just fall through the door.

In todays Business World, if you are not Lean, Mean and Competetive, you are quickly left behind to wallow in self pity.

The only way forwards is to invest in Technology, and People that can use that Technology.. Thailand lacks the Technology, people, and the will to change, thats why they are now suffering over more progressive Countries such as Vietnam

 

 

Why, when there is the tried and true Chinese method - devalue the yuan !?!

I've seen Vietnamese work and I've seen Thais work. Much as I enjoy staying in Thailand and among Thais, let's just say as far as workers are concerned, the Vietnamese run circles around the Thais. That they are ALSO cheaper certainly doesn't help either!

 

I think Thailands Xenophobia stops it from joining FTA's so easily. Vietnam is very forward looking compared to backward looking Thailand

36 minutes ago, ourmanflint said:

I think Thailands Xenophobia stops it from joining FTA's so easily. Vietnam is very forward looking compared to backward looking Thailand

A draconian communist government with the worse human rights abuse in all of SEA. But yeah they amazing anti xenophobic ????

11 hours ago, kingdong said:

Vietnams cheaper.than thailand,i used to bring an empty bag to thailand and take it back full,now i take a full bag( full of things for friends) and bring back an empty one,( and wallet)

 

I was watching a virtual walk video shot in London, and a street market had bananas that were cheaper than I can get them in Thailand. What's all that about! It's getting to be that, apart from 5* hotels, everywhere is cheaper than Thailand. It seems to be that whenever things go up in price in Thailand it's buy 15-20%, whereas in the real world they might increase by 2-3%.

Thailand also has a problem regarding their bad press in Europe.

The coconut milk scandal, with animal abuse (monkeys) - has seriously hurt Thai exports to Europe.

 

We don't forget.....

 

 

Thailand itself is to expensive

Prices are at the same level or above of western countries. People want quality and fair prices.

 

If you can not do both and other can do it you lose the market.

 

Thailand think they are alone.

 

They forget South Korea started as a lower level compared to Thailand and see where they are now.

18 hours ago, hotchilli said:

Thailand doesn't do well on a level playing field.

Cheap is one thing but Western & EU citizens look for quality as well as price.

They sell a load of chicken to the UK, about 18% of their consumption, mainly to 

the catering trade, now they're out of Europe maybe that will increase.

 

I can't speak for the price, but there were strict rules on standards from DEFRA so I 

would imagine he quality was ok.

22 hours ago, madmen said:

A draconian communist government with the worse human rights abuse in all of SEA. But yeah they amazing anti xenophobic ????

Both of those statements can be true at the same time.