Thai factory closures, a victim of Chinese imports surge

[Will B Good]

9 minutes ago, Gecko said:

So explain please why they can produce cheaper than anyone else.

 

Economy of scale and few imported raw materials plus a plentiful workforce that is severely oppressed....working long hours, minimal holidays and low pay.

[JonnyF]

1 minute ago, KhunLA said:

I consider that a good thing, for the Thai economy and workers.

 

I assume you have never worked in a Thai factory under Chinese ownership.

 

Japanese companies tend to have much higher ethics in terms of how they treat their workforce. 

[digbeth]

the protectionist 200% import tax to 'protect' the local auto industry seems to make the local japanese manufacturer complacent rather than innovate and compete, equivalent models honda were cheaper and better equipped and cheaper in Europe built in the UK

 

no wonder they seem to crumbles at the slightest invasion from China

[KhunLA]

8 minutes ago, JonnyF said:

 

I assume you have never worked in a Thai factory under Chinese ownership.

 

Japanese companies tend to have much higher ethics in terms of how they treat their workforce. 

Nobody forces anyone to work anywhere ... choices abound.   I worked some crap jobs, nobody forced me to.  I worked crap jobs that paid better or better bennies.  My choice ... we all prostitute ourselves, till we don't have to.

 

Some bad deals, some OK, some better ... choices.   Chose wisely.

[LivingNThailand]

21 minutes ago, MalcolmB said:

28 minutes ago, Gecko said:

So explain please why they can produce cheaper than anyone else.

Better workers, less taxes and red tape, scale of production, smarter, less profit per unit.

Government subsidies.   I know from personal experience.

[Purdey]

Capitalism is all about beating the next person. Can't compete? Get out of the market. However, today it seems to be, we can't compete so let's ban their products or put up artificial barriers. 

[JonnyF]

11 minutes ago, KhunLA said:

Nobody forces anyone to work anywhere ... choices abound.   I worked some crap jobs, nobody forced me to.  I worked crap jobs that paid better or better bennies.  My choice ... we all prostitute ourselves, till we don't have to.

 

Some bad deals, some OK, some better ... choices.   Chose wisely.

 

Choices for Thai workers will become fewer and far less attractive if the Chinese move in and drive Japanese and European manufacturers out.

 

The Chinese are not known for their human rights record and employee welfare. 

[ChipButty]

Thai's dont want work, they want the money, 

[watchcat]

15 hours ago, BangkokReady said:

 

She's been in steady employment for 20 years.  That's a long time to be still paying off a reasonable family car.  Chances are she got into debt buying things she didn't need.

 

Making 9-10000 baht per month. Not easy to save money on salay like that, but I agree that probably she bought things she didn't  need also.

[watchcat]

5 minutes ago, ChipButty said:

Thai's dont want work, they want the money, 

 She worked 20 years before her job was was terminated.

 

 

[MalcolmB]

40 minutes ago, LivingNThailand said:

Government subsidies.   I know from personal experience.

All countries with car industries do it.

[JonnyF]

21 minutes ago, ChipButty said:

Thai's dont want work, they want the money, 

 

Don't we all? 😃

 

I know hard working Thais and lazy Thais. Same as I know hard working farangs and lazy farangs. 

[placnx]

5 hours ago, mfd101 said:

The difference between the Oz past and the Thai present is in the wages paid to the factory workers.

 

China's GDP per capita is twice Thailand's and its GDP per capita in PPP is about the same as Thailand's. Yet Thailand still can't compete ...

To make comparisons, it would be better to compare median incomes than GDP per capita.

[placnx]

1 hour ago, KhunLA said:

I consider that a good thing, for the Thai economy and workers.   Look at the countries that outsource most of their manufacturing now (to CH ), and they seemed to simply become a service oriented workforce for the elite.

 

What to citizens of those countries complain about ... 'we don't manufacture anything any more'.   Along with the loss of employment opportunities, for those that depend on employers for income.

The pandemic experience is forcing a rethink. Since China is an historical source of pandemics, now the thinking is to curtail outsourcing to China and shorten the supply chain. In the US case, that means more manufacturing relocated to Mexico. Still, Thailand will get some of the industry moving out of China, but higher-end production is more likely moving to Malaysia or other countries with a well-educated workforce.

[Guderian]

You'd think they'd have the wit to look at what the Americans and Europeans are doing to stem the flow of super-subsidised Chinese car dumping, and adapt it to suit their situation. But no, just let the Chinese hollow out Thailand's industrial base, they can always attract more tourists, after all. <rollseyes>

[LivingNThailand]

1 hour ago, MalcolmB said:

1 hour ago, LivingNThailand said:

Government subsidies.   I know from personal experience.

All countries with car industries do it.

Chinese government subsidizes all industries, including clothing, electronics, toys, bags, you name it, they do it.

[MalcolmB]

1 minute ago, LivingNThailand said:

Chinese government subsidizes all industries, including clothing, electronics, toys, bags, you name it, they do it.

Yes, it works well government supporting business instead of taxes and red tape

[john donson]

complaining that cd killed vinyl plate, or online music killed music shops?

 

go with the flow

 

AI will not take many jobs in thailand...

[KhunLA]

54 minutes ago, placnx said:

The pandemic experience is forcing a rethink. Since China is an historical source of pandemics, now the thinking is to curtail outsourcing to China and shorten the supply chain. In the US case, that means more manufacturing relocated to Mexico. Still, Thailand will get some of the industry moving out of China, but higher-end production is more likely moving to Malaysia or other countries with a well-educated workforce.

 

Too funny or silly to reply. 

 

Is there any manufacturing left, that ha moved to MX.   Thai are educated enough to do anything needed for manufacturing.  If not, robotics will do it.

 

1 hour ago, JonnyF said:

 

Choices for Thai workers will become fewer and far less attractive if the Chinese move in and drive Japanese and European manufacturers out.

 

The Chinese are not known for their human rights record and employee welfare. 

 

I think who owns the company is the least of the Thai workers concerns.  The immigrant workforce they have to compete against is more of an issue.   So more jobs will be welcomed for those that wish to work.

[Aussie999]

3 hours ago, BangkokReady said:

 

Thailand is used to being in demand with foreign tourists and businesses. They view it in a "they need us more than we need them" kind of way, and don't seem to understand that it is possible to drive people away. One of the drawbacks to the "Thai supremacy" ideology.

 

If their economy is 20% tourism and 25% foreign manufacturing, you would think they would be looking for ways to attract foreign people and make them want to stay, rather than blaming them for everything pushing them away.

Stop thinking logically... 555

[LivingNThailand]

22 hours ago, MalcolmB said:

22 hours ago, LivingNThailand said:

Chinese government subsidizes all industries, including clothing, electronics, toys, bags, you name it, they do it.

Yes, it works well government supporting business instead of taxes and red tape

This is how it works (in basic math)   If a factory in China makes something that costs $1 and they want to sell it for $2 to make a profit the Chinese government gives the Chinese factory a $1 subsidy so the Chinese factory can sell it for $1. 

 If a factory in Thailand makes a similar item that costs $1 and the Thai factory wants to sell it for $2 to make a profit the Thai government does not give the Thai factory $1 subsidy so the Thai Factory has to sell the item for $2.   

Now the public can choose the $1 Chinese product or a similar $2 Thai product.    Chinese government subsidies hurt Thai factories.   The Thai government could impose duties or tariffs to make it more competitive.   

I'm not an expert on what and if there are duties and tariffs that the Thai government imposes.   I do know that I used to import into the US from Thailand and even with the duties and tariffs imposed on our projects we could not compete with the Chinese subsidized products even though the duties and tariffs were the same for each country.    Chinese government-subsidized products hurt other country's bottom line.

Edited July 17 by LivingNThailand

[spidermike007]

Politics is only a small part of the problem here. The economy is still reeling after 9 years of the "Prayuth Decimation" and tremendous levels of incompetence with regard to economic policy. From what I hear new car sales are down over 40%, the used car market is dead, condo and home sales are down, and manufacturers are leaving Thailand in droves, with very little new investment coming in.

 

Thailand is in for quite a ride over the next few years, and that doesn't even take into account the probability of a huge worldwide economic correction, which I believe is coming. 

 

Thailand has witnessed nearly 2,000 factory closures in the past year, upending its manufacturing sector thatcontributes nearly a quarter of its gross domestic product (GDP).

 

“The industrial sector has slumped, and capacity utilisation has fallen below 60 per cent,” Mr Srettha told Parliament last week. “It is clear that the industry needs to adapt.” As a result, job losses jumped by 80 per cent during the same period, with more than 51,500 workers left without work, the data shows.

 

 

https://www.straitstimes.com/business/thai-economy-faces-upheaval-due-to-factory-closures-cheap-chinese-imports

[fondue zoo]

On 7/16/2024 at 3:15 PM, KhunLA said:

we all prostitute ourselves, till we don't have to.

 

I'm never going to stop! wooohoo

 

[OneMoreFarang]

Should we blame China and their companies to be able to offer many things cheaper than the rest of the world?

 

If none-Chinese manufacturers can offer better quality, then I am sure they will keep customers who want high quality.

If, however, China can compete in price and quality, why should people spend more money?

 

It's business. If companies and factories are competitive, then they will stay in the business. If not, then not. 

[fondue zoo]

 

The extended family here have owned two medium size factory sites (textile related) for many years now.

At the last get together the talk was grim, contracts not being renewed, accounts not getting paid, order numbers drastically reduced (local and OS), new clients are more difficult to find, nobody wants to commit to anything. etc. They didn't 100% blame imports but admitted in some cases complacency had become a problem, so this year they've really had to pull a finger out pivot and hustle to make things happen.

[0ffshore360]

On 7/16/2024 at 11:50 AM, Gecko said:

So explain please why they can produce cheaper than anyone else.

Volume.

 

[metisdead]

A post that was a misquote of another member's post and a reply has been removed.

[Gknrd]

Drive over to Laos if you want to see what Thailand will be like in 10 years..

Thailand is China's number 1 supporter in SE Asia. It is just a matter of time now.

You wanted it, you got it. If Thai, best to learn Chinese.

 

And in different news, my area in central Texas is booming to a point where money is like water. The government in the US is banning, restricting, and taxing Chinese goods into the ground. 

Manufacturing in the US is at an all time high and factory's are popping up everywhere. Chinese desperate to bypass the sanctions are moving into Mexico by the millions. Now the Mexican government is putting their foot down. 

Growth here is outstanding and is expected to drive employment and growth for the next 50 years. 

 

All this while Thailand has shunned the Westerners. Thailand is getting what it deserves. It will follow China into the ground.. 

 

Whoops Thailand, you drank the Chinese cool-aid, and now you are seeing the results. While the Western allies are pulling together you will be stuck with China, Russia, North Korea, Iran.  Good luck with that cluster <deleted>...

We don't want you anymore.

 

Edited July 18 by Gknrd