The Federation of Thai Industries (FTI) has called on the government to raise import duties or limit the influx of cheap Chinese goods to safeguard local factories.

 

The FTI warns that the surge of low-cost Chinese products is causing Thai industries to struggle, leading to a significant number of factory closures.

 

In the first five months of this year, 567 factories in Thailand have shut down, averaging 28 closures per week and resulting in approximately 15,000 job losses.

 

This figure slightly surpasses last year's average of 26 weekly closures. The FTI's vice president, Nava Chantanasurakhon, highlighted that even though new factories opening outnumber those closing, the trend remains alarmingly concerning.

 

One of the primary challenges for Thai manufacturers is the increased import of inexpensive Chinese products. China's focus on exporting to ASEAN countries, including Thailand, has intensified due to stricter import regulations imposed by the US and the European Union on Chinese goods.

 

Consequently, Thai industries such as plastics, metals, wood, and wood processing have been severely impacted.

 

To protect these vulnerable sectors, the FTI recommends the government implement higher tariffs and stricter import restrictions on Chinese products. Additionally, Nava emphasised the need for measures to reduce domestic production costs, which include addressing fuel prices, logistics, and raw material expenses.

 

The FTI also advocates for government assistance in helping Thai industries restructure to enhance their competitiveness in the global market.

 

The call for action from the FTI is an urgent appeal to shield local businesses from the overwhelming pressure of cheaper imports and to ensure the sustainable growth of Thailand's manufacturing sector.

 

File photo courtesy: Quora

 

-- 2024-06-21

 

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3 hours ago, webfact said:

The Federation of Thai Industries (FTI) has called on the government to raise import duties or limit the influx of cheap Chinese goods to safeguard local factories.

Thailand just cannot compete in a free market.

They go around the world begging for FTA's then tax the hell out of all imports.

That’s only 27 more closures than before and not surprising considering how the economy is doing. They say unemployment is down and more companies registered this year than last. They need to get their stories straight. Thailand used to be cheap but now they’re increasing prices so go figure. 

4 hours ago, webfact said:

The FTI warns that the surge of low-cost Chinese products is causing Thai industries to struggle, leading to a significant number of factory closures

Aka China's sacrificial economic lamb to help China's economy to grow. PM Thavisin might want to first get China's viewpoint on placing duties and VAT on Chinese imports. Or China might leverage its greatest economic tool against Thailand - Chinese tourism. 

What?  How many times are they going to repeat this tax story.... This must be the 3rd 4th time in many months they have said this was going to happen and it has not.... 

Now they've just stepped over the boundary, your masters will be very disappointed! You wouldn't want to become like the Philippines to the Chinese, the Chinese don't play very nice.

do it now before the China-Thailand railway is completed and boxcars of cheap products arrive

more tax... how novel! puke thai, the party that keeps on taking

6 hours ago, webfact said:

The FTI warns that the surge of low-cost Chinese products is causing Thai industries to struggle, leading to a significant number of factory closures.

Thailand does not even make most of the cheap products that China does. 

 Have a look at those and diversify numpties, I just wanted some white board pens with a magnet, replacement remotes, CHINA only has this type of stuff. Even Telephones "made" here, have Chinese parts. 

7 hours ago, webfact said:

In the first five months of this year, 567 factories in Thailand have shut down, averaging 28 closures per week and resulting in approximately 15,000 job losses.

 

7 hours ago, webfact said:

even though new factories opening outnumber those closing, the trend remains alarmingly concerning.

 

So actually the number of factories is increasing, not decreasing, meaning this is a completely invented "crisis"...

Government Urged to Increase Import Duty on Cheaper Chinese Products

 

I think it has more to do with making more money on the Thai stuff and not enough competition .

Looks like the disease Greed . 

Can't make More profit  then Cry to the government.

Farmers done the same instead of, putting other crops on their farm and upgrade their produce and Farm.

It will just increase inflation without making Thai manufacturers any more competitive. They don't even make this low end stuff anyway.

13 hours ago, webfact said:

The Federation of Thai Industries (FTI) has called on the government to raise import duties or limit the influx of cheap Chinese goods to safeguard local factories.

The poorest segment of society get a break and then the government steps in to protect the profits of Thai corporations by screwing the poorest segment of society seeking to economize.  Happiness to the people! 

7 hours ago, redwood1 said:

What?  How many times are they going to repeat this tax story.... This must be the 3rd 4th time in many months they have said this was going to happen and it has not.... 

That was the plan to add VAT to all imports , this is to increase import duty on Chinese

exports , 

 

regards Worgeordie

10 hours ago, hotchilli said:

Thailand just cannot compete in a free market.

They go around the world begging for FTA's then tax the hell out of all imports.

I not sure that's fair. The CCP heavily subsidises it's industries and floods the international market with cheap goods. EV's are a good example of this. Prison labor is also used in China to produce extremely cheap products.

3 minutes ago, dinsdale said:

I not sure that's fair. The CCP heavily subsidises it's industries and floods the international market with cheap goods. EV's are a good example of this. Prison labor is also used in China to produce extremely cheap products.

And Thailand has thousands of migrant labourers working on the minimum or less wage to keep production costs down.

They see that as okay but want to stop competition.

Is that fair?

5 minutes ago, hotchilli said:

And Thailand has thousands of migrant labourers working on the minimum or less wage to keep production costs down.

They see that as okay but want to stop competition.

Is that fair?

I was not talking about that was I but nobody can deny that China is flooding the international market with cheap products which was my point. If you want to argue then argue against the point I'm making. As for Thailand using cheap labor, cheap labor is used everywhere in this era of globalisation is it not.

12 hours ago, dinsdale said:

I was not talking about that was I but nobody can deny that China is flooding the international market with cheap products which was my point. If you want to argue then argue against the point I'm making. As for Thailand using cheap labor, cheap labor is used everywhere in this era of globalisation is it not.

Both China and Thailand provide cheap products via different methods.

 

Notice the theme here:
Carbon taxes
Tariffs on lower priced products from China
Taxes on lower priced imported products
More creative taxation now targeting non-resident/non-citizens

Tax tax tax tax tax

Who does it most seriously impact?  The poorest segments of society.
In the meanwhile inflation is screwing the middle class and poor.  Ironically the village poor may be the least impacted as locally grown foods, produce, and single-item noodle-shop foods tend not to go up in price as there is huge pushback at the local level.  But go to a corporate grocery or other stores in cities and you see the inflation in spades.  Items increasing in price by 20% to 60% or more over the last four years and those prices will never go back down.

On the flip side, consumers like myself simply stop buying discretionary junk and processed foods which are targets for inflation and shrinkflation. 

So taxation and inflation, especially carbon taxes, are going to drive the commoner-classes into neo-feudalism.  Which may be the point after all. 

18 hours ago, dinsdale said:

I was not talking about that was I but nobody can deny that China is flooding the international market with cheap products which was my point

Take a look another way:  China is producing goods at a lower cost and providing consumers with value.  So communist China is out free-marketing the countries who advertise themselves as free-market democracies and bastions of freedom - who then screw their consumers by levying taxes and tariffs on the low priced goods that their own country can produce themselves.
I find it amazing the Western consumers pick up their government and media talking points and verbally bash China for being the lowest priced seller of consumer goods.  All they do is give their own government permission to tax those items and make them more expensive for themselves while the government pockets the taxes and tariffs and spends on items that don't help manufacturers - like dropping carbon taxes.

Making inexpensive foreign goods don't make local manufacturers "more competitive."  Shaking those manufacturers who can't compete out of the market makes the market more competitive and those who CAN compete fill the vacuum.

"China subsidizes it's manufacturers!  Arrrrgghhh!"

Well - get a clue Thailand et.al.  Ditch the self-imposed economic constraints on your manufacturing base - like freaking Carbon Taxes!  Morons! 

On 6/21/2024 at 3:14 AM, webfact said:

To protect these vulnerable sectors, the FTI recommends the government implement higher tariffs and stricter import restrictions on Chinese products. Additionally, Nava emphasised the need for measures to reduce domestic production costs, which include addressing fuel prices, logistics, and raw material expenses.

Protectionism doesn't foster free-trade and lower consumer prices.  If you can't compete, either get out of the market or figure out ways where you can compete.  Figure out what China needs and promote your manufacturing base to produce the widgets China needs.  If you're going to join the BRICS, Thailand, you better figure out how to compete in that economic union - tariffs ain't gonna cut it.

And you don't "reduce domestic production costs" by rising tariffs on imported parts and by rising taxes - and saddling your manufacturing base with freaking carbon taxes.

I always found it wierd that the Thai government makes more Tax on imported items than they do on items made in Thailand. In many cases 40% duty - plus import tax - plus 7% VAT.

So the less Thailand manufacturers, the more Tax the government makes.

20 hours ago, connda said:

"China subsidizes it's manufacturers!  Arrrrgghhh!"

So the CCP isn't heavily subsidising BYD??????? It's not a free market economy when governments heavily subsidise it's manufacturers. US now putting 100% tariffs on Chinese EV's and Germany is soon to follow.

The notion that Thailand can compete with China either in technical capabilities or on productivity is laughable. A whole world and 50 years of change are needed.

 

Meantime Thailand will continue to slide down the ladder to client-state status, much like Laos and the Myanmar regime.

On 6/20/2024 at 9:14 PM, webfact said:

In the first five months of this year, 567 factories in Thailand have shut down, averaging 28 closures per week and resulting in approximately 15,000 job losses

Didn't read replies so might have been said, but guaranteed that many of the local closures had them setting up shop in China to bring same products back anyway, all the while lowering overheads. Upshot is bigger profits for Thai owner (and the Chinese system) and the shaft for Thai workers. The whole world is going/has gone this way. Cheap tat and online shopping etc.

The US and British governments award "Incentive Grants" to foreign and domestic car manufacturers to build factories, but that does not count. They would fall over themselves to finance a BYD assembly line.

There's a lot more revenue to be earned by seriously taxing imports of cheap Chinese EV's. Maybe the Thai car factories wouldn't be closing down and laying workers off at an alarming rate if they'd done that to start with.