8% of Japanese firms in Thailand plan to move new business into the kingdom despite cost rises

[webfact]

(Right) The President of the Japan External Trade Organization (JETRO) in Thailand has revealed that 25% of Japanese firms currently in Thailand plan to expand in 2023 while only 1% have plans to contract. The good news comes despite a fall in confidence at the end of 2022 and also with the news that 8% of Japanese firms here are planning to move business concerns to Thailand from other countries in 2023. Deputy Prime Minister Supattanapong Punmeechaow (inset centre)

 

by Joseph O' Connor

Deputy Prime Minister Supattanapong Punmeechaow defends Thailand as a place to do business as it loses ground to Indonesia and Vietnam which maintain lower electricity tariffs, offer younger workers and more competitive labour costs. Pointing to lower interest rates compared to other ASEAN countries, the country’s economic czar says that across the board, the kingdom remains a competitive place to do business and work.

A Japanese business leader has confirmed the results of a survey which showed declining confidence levels among Japanese firms in Thailand towards the end of last year but has indicated that there has been a change in recent weeks and now predicts that 25% of Japanese concerns will expand in Thailand in 2023 while only 1% will see a decline. He also promises that 8% of firms are moving to relocate business operations from other countries to Thailand as supply chains are being reordered with a move worldwide to make firms less reliant on China. On Sunday, Thailand’s deputy prime minister for the economy and energy, Supattanapong Punmeechaow, admitted that the kingdom’s electricity costs were higher than both Indonesia and Vietnam, its two key ASEAN competitors for inward investment but insisted that overall, Thailand remains a competitive place to do business.

 

Deputy Prime Minister and Minister of Energy Supattanapong Punmeechaow, this weekend, defended the kingdom’s industrial policies following concerns expressed following a survey conducted by Japanese business interests in Thailand which showed rapidly declining confidence in the latter half of 2022.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2023/02/05/8-per-cent-of-japanese-firms-to-move-business-to-thailand/

 

-- © Copyright Thai Examiner 2023-02-06

 

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[hotchilli]

3 hours ago, webfact said:

Deputy Prime Minister Supattanapong Punmeechaow defends Thailand as a place to do business as it loses ground to Indonesia and Vietnam which maintain lower electricity tariffs, offer younger workers and more competitive labour costs. Pointing to lower interest rates compared to other ASEAN countries, the country’s economic czar says that across the board, the kingdom remains a competitive place to do business and work

Remains competitive until it isn't, for many reasons Thailand is losing ground to it's neighbours who are up to date.

When the cost of moving out of Thailand becomes affordable a lot will go.

 

[jacko45k]

19 minutes ago, hotchilli said:

Remains competitive until it isn't, for many reasons Thailand is losing ground to it's neighbours who are up to date.

When the cost of moving out of Thailand becomes affordable a lot will go.

 

I am a bit surprised Thailand remains attractive to them.... most of the population comes across as a bit work shy and they have to import people to do the real physical work.

[Blumpie]

A country based on not bringing foreign workers in will have to change their tactics, and we can see this playing out.  Put simply, Japanese have no workers to fulfill these positions.  

[hotchilli]

2 hours ago, jacko45k said:

I am a bit surprised Thailand remains attractive to them.... most of the population comes across as a bit work shy and they have to import people to do the real physical work.

It's losing it's attractiveness for new business.

The large automotive companies probably don't like the cost of upping sticks and moving production.

But if new facilities are made next door then work will be slowly transferred.

[smedly]

8% of Japanese firms in Thailand plan to move new business into the kingdom

 

 

are they actually reporting this as "good news" ?

 

where is the other 92% going ?

 

IMO there is nothing good about this

[smedly]

2 hours ago, jacko45k said:

I am a bit surprised Thailand remains attractive to them.... most of the population comes across as a bit work shy and they have to import people to do the real physical work.

8% says the opposite - I would agree if it was more than 80%

 

there is obiously something very wrong when 92% of established foreign businesses are going elsewhere 

[nigelforbes]

7 minutes ago, smedly said:

8% of Japanese firms in Thailand plan to move new business into the kingdom

 

 

are they actually reporting this as "good news" ?

 

where is the other 92% going ?

 

IMO there is nothing good about this

It says that 8% of existing Japanese forms in Thailand, plan to bring in business from other countries, into Thailand. The other 92% aren't doing anything apart from run their businesses here the way they have in the past.

 

 

[nigelforbes]

Japan is the biggest single investor in Thailand and has been for decades, their continued FDI flows are nearly always the largest of any country. None of that points towards problems.

[Cake Monster]

8 hours ago, webfact said:

Deputy Prime Minister Supattanapong Punmeechaow defends Thailand as a place to do business as it loses ground to Indonesia and Vietnam which maintain lower electricity tariffs, offer younger workers and more competitive labour costs. Pointing to lower interest rates compared to other ASEAN countries, the country’s economic czar says that across the board, the kingdom remains a competitive place to do business and wo

Not a single mention of the fact that the more competitive labour Costs are mainly attributed to workers being better Educated, more highly qualified and highly skilled.