Thailand factory closures surge as cheap imports hit local industries

[snoop1130]

 

Factory closures in Thailand have surged this year, with local electronics, steel, and plastics manufacturers bearing the brunt as demand declines and cheap imports inundate the domestic market, according to the Industry Ministry.

 

The closures were evaluated based on the investment value of the affected factories. Electronic parts and printed circuit board factories topped the list with an investment value of 2.29 billion baht (US$62 million), said Industry Minister Pimphattra Wichaikul.

 

Second on the list were steel and iron factories, with investments amounting to 1.45 billion baht (US$39 million), followed by plastic manufacturing facilities valued at 930 million baht (US$25 million).

 

From January to May, 488 factories across various industrial sectors ceased operations, Pimphattra noted, citing data from the Department of Industrial Work. These closures represent a combined investment value of 14 billion baht (US$380 million).

 

During this five-month period, 12,551 workers were laid off as companies struggled to remain competitive against foreign rivals offering lower-priced products. Some local manufacturers attempted to mitigate the issue by relocating production to neighbouring countries to leverage free-trade agreements, she added.

 

 

The EAF Long Product Steel Producers Association previously indicated that several local steel manufacturers face potential closure this year due to competitive pressures from Chinese imports. The influx of Chinese steel has significantly impacted Thailand’s steel industry, reducing capacity utilisation to a mere 28% between January and February, the association reported.

 

The Office of Industrial Economics revised its forecast for Thailand’s Manufacturing Production Index, predicting it will either remain flat or increase by 1% year-on-year in 2024. This is a downgrade from earlier growth projections of 2-3%, reported Bangkok Post.

 

Despite the downturn in several sectors, the Industry Ministry highlighted that some entrepreneurs, particularly in the food, animal feed, and fertiliser industries, are forging ahead with new investments. Between January and May, these sectors saw the establishment of 848 new factories, with a total investment value of 149.8 billion baht (US$4 billion), said Pimphattra.

 

“Local manufacturers cannot compete with rivals who sell products at lower prices. Some decided to solve the problem by relocating their production facilities to neighbouring countries to take advantage of free-trade agreements.”

 

The outlook for Thailand’s manufacturing sector remains mixed, with some industries facing significant challenges while others continue to invest and expand.

 

By Bright Choomanee

Picture courtesy of Bangkok Post

 

Source: The Thaiger 2024-06-27

 

Get our Daily Newsletter - Click HERE to subscribe

[John Drake]

China is going to reduce Thailand to an industrial wasteland, a country of peasants tending rice, sugar cane, and rubber. Yes, China is going to return Thailand to the 1900s.

[hotchilli]

15 hours ago, snoop1130 said:

Factory closures in Thailand have surged this year, with local electronics, steel, and plastics manufacturers bearing the brunt as demand declines and cheap imports inundate the domestic market, according to the Industry Ministry.

But don't fear, although closures have surged this year, we were told a month ago that new opening were higher.

[hotchilli]

13 hours ago, John Drake said:

China is going to reduce Thailand to an industrial wasteland, a country of peasants tending rice, sugar cane, and rubber. Yes, China is going to return Thailand to the 1900s.

I though it already was

[Snackbar]

Ukraine fallout leads to ten fold investment increase

[RichardColeman]

14 hours ago, John Drake said:

China is going to reduce Thailand to an industrial wasteland, a country of peasants tending rice, sugar cane, and rubber. Yes, China is going to return Thailand to the 1900s.

Agreed, and any high speed rail line will speed that up to. It's just a shame the powers that be cannot see it

[Thingamabob]

1 hour ago, RichardColeman said:

Agreed, and any high speed rail line will speed that up to. It's just a shame the powers that be cannot see it

The powers that be here are well looked after by the Beijing govt.

[JimHuaHin]

China basically considers Thailand as a colony - a place where China can dump its cheap excess produce, send is excess workers (an estimated 400,000 in Thailand, according to Chinese sources), and exploit Thailand's natural resources.  All with the help of the local Chinese-Thai businesses which have close links to the Chinese Communist Party.  (Search for information on the first overseas business to invest in China after the 1949 Chinese Communist Revolution (hint - it was a Thai company), and which Thai company has factories in virtually every Chinese province?)

[harryviking]

Is Thailand the only country in the world that does not protect its own industry from the cheap imports from China?? Are they so afraid of China that they allow those subsidized products to ruin their businesses?? Grow some balls and put a 100 % tariffs on them!

[john donson]

17 hours ago, John Drake said:

China is going to reduce Thailand to an industrial wasteland, a country of peasants tending rice, sugar cane, and rubber. Yes, China is going to return Thailand to the 1900s.

 

different from now how ?

 

well thailand has something in abundance what china lacks...

 

women in the 'entertainment' industry...

 

maybe they can start buying these women , for a while and start a china forum complaining 

[ujayujay]

18 hours ago, John Drake said:

China is going to reduce Thailand to an industrial wasteland, a country of peasants tending rice, sugar cane, and rubber. Yes, China is going to return Thailand to the 1900s.

Nonsense: Thailand's industry is not competitive. According to your theory, all countries that trade with China will go bankrupt industrially

[Denim]

3 hours ago, RichardColeman said:

Agreed, and any high speed rail line will speed that up to. It's just a shame the powers that be cannot see it

 

Well, maybe the pile of brown envelopes is now so high they can't see over the top of it.

[Denim]

59 minutes ago, john donson said:

 

different from now how ?

 

well thailand has something in abundance what china lacks...

 

women in the 'entertainment' industry...

 

maybe they can start buying these women , for a while and start a china forum complaining 

 

There is a bit in the BP about how China is surging ahead in the production of life like sex dolls with AI build in.  Gonna be hard for the locals to compete about 5 years from now.

[mason 45]

3 hours ago, RichardColeman said:

Agreed, and any high speed rail line will speed that up to. It's just a shame the powers that be cannot see it

cannot or don't want to see it?

[Almer]

4 hours ago, RichardColeman said:

Agreed, and any high speed rail line will speed that up to. It's just a shame the powers that be cannot see it

They can see it, but it will impact the peasants not them. 

[spidermike007]

China is the biggest culprit as they continue to subsidize their factories, running up historic amounts of debt, and ruining the playing field. They just don't seem to care.

 

The upside is that the Chinese economy is in very big trouble, and the next 5 years or so is going to be quite a fascinating roller coaster ride. 

[Almer]

Just now, Almer said:

They can see it, but it will impact the peasants not them. 

It's a shame the peasants can't see it, and of course when as I exspect I will be paying tax on funds transfered here there will be even less to go round, then x it by many many.