Where Does All The Money Come From

[srisatch]

Where does all the money come from?

I live in a small village. Basically I have three neighbours. Though there are of course others and some of them appear poor...though my wife did say: " don't be fooled by appearances... they are from other provinces and probably have mansions there"!! The daughter next door has recently graduated from university and is thus able to work in 7/11/Tesco/the Phone shop for c.7000B a month (Parents appear not to work!!??). The next neighbours are a nurse and work for the Amphur. Have eventually admitted to earning about 30000B a month…though I suspect more…have two cars..new Vios and New Vigo...apparently easy credit if you work for government, though guy says he bought Vigo with 'Fresh Money' (I love that phrase). The third neighbour has some land and a new Mercedes.

In the morning I take my children to school in Chiang Mai and come home shaking with fear from having been nearly rammed several times by maniacs driving NEW Toyota Vigos and Fortuners let alone Isuzu Mu7s at 140kph.

In the UK where we live (sometimes) most people we know drive slightly ageing Fords or VWs. All these neighbours have cars, mobile phones, satellite TV and DVDs and own their own houses..many of them as far as I can gather worth several million Baht

Can some-one explain where all the money comes from here?

Edited September 22, 2008 by srisatch

[ozzydom]

Hard work perhaps.

Appearances can be deceiving in Los, I see quite a few locals who dont appear to have two 10 baht coins to rub together,but T/W assures me they are very wealthy .

When I ask ,how do they get rich ? the usual reply is ,"Oh they have many farms,grow many rice or have many rubber trees ,as the case may be.

[sylviex]

I wonder about this, too.

I have decided it is possible that the explanation might lie in a rather more casual relationship with the law than is customary in our home countries, but am unable to figure out the details. (Nor do I wish to, really; they might prove tempting .)

But yes, it is odd. Years of honest labour in Australia & Asia have brought security but no series of pink icecream cake-like palaces or football clubs.

Not that I crave such a life -- it has serious drawbacks and I believe that less wealth disparity around the world is desirable.

I have seen migrants from a variety of ethnic backgrounds buy property in Australia and build personal wealth. They spend not a cent on anything unneeded; the homes are bare (with the exception of their kids' rooms, which overflow with toys) and they wear -- and wash -- the same clothes each day.

And it is much harder here to earn a sum of money that won't float off in the wind. No, I don't know at all.

[Wrong Turn]

Hard work perhaps.

Appearances can be deceiving in Los, I see quite a few locals who dont appear to have two 10 baht coins to rub together,but T/W assures me they are very wealthy .

When I ask ,how do they get rich ? the usual reply is ,"Oh they have many farms,grow many rice or have many rubber trees ,as the case may be.

My landlord is a husband & wife.

They drive old, scrappy cheap model motorcycles. They dress in average, cheaply looking clothes.

They own 5 large apartments that we know of. I assume they have other things going on to.

One person that speak the language fluently says they check the gold prices a lot.

Some people hide their wealth. Perhaps there is a reason for it beyond, frugality.

[h90]

Hard work perhaps.

Appearances can be deceiving in Los, I see quite a few locals who dont appear to have two 10 baht coins to rub together,but T/W assures me they are very wealthy .

When I ask ,how do they get rich ? the usual reply is ,"Oh they have many farms,grow many rice or have many rubber trees ,as the case may be.

My landlord is a husband & wife.

They drive old, scrappy cheap model motorcycles. They dress in average, cheaply looking clothes.

They own 5 large apartments that we know of. I assume they have other things going on to.

One person that speak the language fluently says they check the gold prices a lot.

Some people hide their wealth. Perhaps there is a reason for it beyond, frugality.

I have some customer hard working Thai Chinese....they come with an old car or two stroke motorbike and buy between 20-100.000 Baht per month in hydraulic seals and they buy from different sources not only me and the seals are a very low percentage of the complete business.

One in particular, if you would sit him below the skytrain...you would give him 10 Baht, but he is super rich (explained my wife that he purchase everything himself, no matter if 1.000.000 or just 5 Baht, because staff zigzag money).

[soundman]

Looks can be very deceiving.

The richest man, and 2nd largest landholder, in my amphur wears shitty tracksuits, drives a beat up old Toyota and lives in a couple of rooms at the front of his 150B per night budget hotel.

Almost everyone in the amphur, who has a new car has bought it on credit & in many instances, they couldn't come up with 10,000B if their lives depended on it.

There is probably 50k+ people living in my amphur & all the wealth, land and business is owned by around ten large, wealthy families or large, usually public listed, companies. All the remaining crumbs are scatered piecemeal amongst the remainder of the population.

The irony is that what would be considered wealthy in the west, say a net worth of a couple of million dollars, wouldn't even raise an eyebrow amongst the wealthy Thai's in my area.

Cheers,

Soundman.

[Boater]

i do not from a lot of thais, if they earn 20K a month, they will spend upto 70 % of there salary on there car???????

[WinnieTheKhwai]

I think it's a combination of a truly free market economy and little (if any) taxes.. Loads of people do trading of some sort.. sometimes people running tiny shophouses or even noodle restaurants make loads of money.

Edited September 22, 2008 by WinnieTheKhwai

[h90]

i do not from a lot of thais, if they earn 20K a month, they will spend upto 70 % of there salary on there car???????

often "part-time" car as often after 6-12 month the company take it back.....

don't even have 20 Baht in the pocket but a new car....

[terrier123]

Where does all the money come from?

I live in a small village. Basically I have three neighbours. Though there are of course others and some of them appear poor...though my wife did say: " don't be fooled by appearances... they are from other provinces and probably have mansions there"!! The daughter next door has recently graduated from university and is thus able to work in 7/11/Tesco/the Phone shop for c.7000B a month (Parents appear not to work!!??). The next neighbours are a nurse and work for the Amphur. Have eventually admitted to earning about 30000B a month…though I suspect more…have two cars..new Vios and New Vigo...apparently easy credit if you work for government, though guy says he bought Vigo with 'Fresh Money' (I love that phrase). The third neighbour has some land and a new Mercedes.

In the morning I take my children to school in Chiang Mai and come home shaking with fear from having been nearly rammed several times by maniacs driving NEW Toyota Vigos and Fortuners let alone Isuzu Mu7s at 140kph.

In the UK where we live (sometimes) most people we know drive slightly ageing Fords or VWs. All these neighbours have cars, mobile phones, satellite TV and DVDs and own their own houses..many of them as far as I can gather worth several million Baht

Can some-one explain where all the money comes from here?

Has baffled me for 10 years. Small town in Isaan with all major car dealers selling new cars every day. Tesco full baskets. Everyone eats out, drink most days. However broke, they always appear to find money somewhere. Maybe every family has someone in the Entertainment Industry ??

[lazeeboy]

Where does all the money come from?

I live in a small village. Basically I have three neighbours. Though there are of course others and some of them appear poor...though my wife did say: " don't be fooled by appearances... they are from other provinces and probably have mansions there"!! The daughter next door has recently graduated from university and is thus able to work in 7/11/Tesco/the Phone shop for c.7000B a month (Parents appear not to work!!??). The next neighbours are a nurse and work for the Amphur. Have eventually admitted to earning about 30000B a month…though I suspect more…have two cars..new Vios and New Vigo...apparently easy credit if you work for government, though guy says he bought Vigo with 'Fresh Money' (I love that phrase). The third neighbour has some land and a new Mercedes.

In the morning I take my children to school in Chiang Mai and come home shaking with fear from having been nearly rammed several times by maniacs driving NEW Toyota Vigos and Fortuners let alone Isuzu Mu7s at 140kph.

In the UK where we live (sometimes) most people we know drive slightly ageing Fords or VWs. All these neighbours have cars, mobile phones, satellite TV and DVDs and own their own houses..many of them as far as I can gather worth several million Baht

Can some-one explain where all the money comes from here?

Has baffled me for 10 years. Small town in Isaan with all major car dealers selling new cars every day. Tesco full baskets. Everyone eats out, drink most days. However broke, they always appear to find money somewhere. Maybe every family has someone in the Entertainment Industry ??

or a rich white son in law

[srisatch]

Thailand is one of the world’s major rice producers. It is also the third largest sugar producing country. There has been a deal of Japanese investment in the electronics assembly business. There is also the clothing and footwear and tourism and selling wooden tat to tourists. But there is a negligible manufacturing base and little energy resource. And the last mobile phone I bought in Bangkok was made in Hungary!

And yes! When I worked in Hong Kong I used to go into the highest floors of tower blocks and having negotiated the Boss and Armani suited ‘helpers’ the real power and wealth used to mosey out in shorts and a dirty T Shirt

But none of that really explains how, where I live, in the ricefields of Chiang Mai there is quite extensive wealth. In the UK and France, where we sometimes try to live, it is clear that there has been an accumulation of wealth through property and trade over a number of centuries. But there is no quite ostentatious display of wealth like here.

Maybe that is also the case here that there has been an accumulation of assets over a long period and that money is now being spent. My wife used to go to the bank in Sukothai and come home reeling because she had to wait while a couple of Grannies deposited 2 million Baht in cash they had brought in to Kasikorn Bank in their handbags. The cash sums, too, being deposited here in San Sai defy belief.

[onzestan]

Favorable tax-regime ?

onzestan

[DP25]

But there is a negligible manufacturing base and little energy resource.

There is plenty of manufacturing in Thailand. The automotive industry is the largest sector of the economy and is worth twice what tourism is. They manufacture almost 1.5 million vehicles per year, as well as millions of motorbikes as well, and the numbers for both are only going to increase.

[srisatch]

But there is a negligible manufacturing base and little energy resource.

There is plenty of manufacturing in Thailand. The automotive industry is the largest sector of the economy and is worth twice what tourism is. They manufacture almost 1.5 million vehicles per year, as well as millions of motorbikes as well, and the numbers for both are only going to increase.

Yes but it is under Japanese franchises, licences etc. And the profits do not entirely revert to the Thai economy....and then those vehicles have to be paid for.............

[thaihome]

Thailand is one of the world’s major rice producers. It is also the third largest sugar producing country. There has been a deal of Japanese investment in the electronics assembly business. There is also the clothing and footwear and tourism and selling wooden tat to tourists. But there is a negligible manufacturing base and little energy resource. And the last mobile phone I bought in Bangkok was made in Hungary!

And yes! When I worked in Hong Kong I used to go into the highest floors of tower blocks and having negotiated the Boss and Armani suited ‘helpers’ the real power and wealth used to mosey out in shorts and a dirty T Shirt

But none of that really explains how, where I live, in the ricefields of Chiang Mai there is quite extensive wealth. In the UK and France, where we sometimes try to live, it is clear that there has been an accumulation of wealth through property and trade over a number of centuries. But there is no quite ostentatious display of wealth like here.

Maybe that is also the case here that there has been an accumulation of assets over a long period and that money is now being spent. My wife used to go to the bank in Sukothai and come home reeling because she had to wait while a couple of Grannies deposited 2 million Baht in cash they had brought in to Kasikorn Bank in their handbags. The cash sums, too, being deposited here in San Sai defy belief.

Manufacturing is a huge industry in Thailand, valued at some 1,680.1 billion baht (about 4 times the value of agriculture at 375.4 billion baht). The largest manufacturing segment is indeed electronics assembly, often of components made in China but requiring a bit more skilled labor then what is available in China. The manufacturing of transportation equipment is fast growing into the largest segment

Though not having much oil, there are large gas reserves in Gulf that allows Thailand to only have to import less then half it’s energy requirements at this point. This is indeed a limited resource so there will be a need in the near future to expand exploration in the Gulf, which is why it so important to come to agreement with Cambodia on the disputed territory (which is what the temple stuff is actually about).

Would be much better if you did some research first instead of basing your opinion on what you observe from your CM rice paddy.

TH

[JetsetBkk]

Hard work perhaps.

Appearances can be deceiving in Los, I see quite a few locals who dont appear to have two 10 baht coins to rub together,but T/W assures me they are very wealthy ....

The old lady who lives opposite the end of my soi owns a lot of land worth tens of millions of baht. I still see her rummaging through the bins of my soi, and sometimes I toot my horn when I'm about to dump a load of plastic so she can come and salvage it.

"Where there's muck there's brass."

[Johpa]

There is plenty of manufacturing in Thailand. The automotive industry is the largest sector of the economy and is worth twice what tourism is. They manufacture almost 1.5 million vehicles per year, as well as millions of motorbikes as well, and the numbers for both are only going to increase.

There is indeed plenty of small manufacturing, but Thailand remains predominately rural. And most of the people farming the land do not actually own the land but rent it Thai style, which means they pay 50% of the harvest to the landlord. Over the past 30 or so years many of those who owned land outside the major cities, like Chiang Mai, sold their padi land to land developers who built all those red tiled roof housing developments favored by the new middle class and ex-pats. These folks, those who did not squander their windfall, then went out and bought agricultural land further afield from struggling rural families. Their main daytime job is to drive over once or twice a year to check on their tenants and collect their yearly income.

If they had a male Chinese connection they might have invested into manufacturing in town as they would have also perhaps had access to credit. And either way, if they preferred to reside in the more rural areas alongside family, usually the wife's family, her sisters, then they would stay and avoid any ostentatious life style for a number of reasons. Besides, being wealthy up-country is not the same as being wealthy in Bangkok. They can afford a nice car while residing in the countryside where there are few expenses and the house land was often inherited, but would not be able to do so if they were to move into an urban environment.

[cmbe]

Hard work perhaps.

Appearances can be deceiving in Los, I see quite a few locals who dont appear to have two 10 baht coins to rub together,but T/W assures me they are very wealthy .

When I ask ,how do they get rich ? the usual reply is ,"Oh they have many farms,grow many rice or have many rubber trees ,as the case may be.

My landlord is a husband & wife.

They drive old, scrappy cheap model motorcycles. They dress in average, cheaply looking clothes.

They own 5 large apartments that we know of. I assume they have other things going on to.

One person that speak the language fluently says they check the gold prices a lot.

Some people hide their wealth. Perhaps there is a reason for it beyond, frugality.

I have some customer hard working Thai Chinese....they come with an old car or two stroke motorbike and buy between 20-100.000 Baht per month in hydraulic seals and they buy from different sources not only me and the seals are a very low percentage of the complete business.

One in particular, if you would sit him below the skytrain...you would give him 10 Baht, but he is super rich (explained my wife that he purchase everything himself, no matter if 1.000.000 or just 5 Baht, because staff zigzag money).

I saw a lot of peoples who choosed to live in this way of life, they have a lot of money but do not use it so much to buy matirial things for make the life better or comfortable more, or maybe they thing what they have it already good enough for their life.

I know somepeople who have 12 members in family, they live in the same house, before was small wood house with small convenience store in a small village in Isaan which have not any commercial bank there. After many years passed, Bangkok bank open new branch in this village and a officer from the bank came to their house to give advise for open new account and deposit money in her bank. They said OK and ask the bank's officers come to their house for correct and count all money that they keep it in the small old wood house, those officers took time almost all day to count money more than 10 millions baht (with a lot of coins), then bring all money to the bank and open an account for this people and now one of their doughter is working for this bank too.

They live so simple life, before they have a three wheels bike with a place for delivery goods to customers in the village, dress a very old cloths (I almost never see their father dress shirt or T-shirt, only pantalon), every day work and work, no time to use money, no time to relax.

Another experience, a couple with 2 young children, they go around with also three wheels bike and look for plastics, bottles,paper, metal or anything that people trouw out then go to recycle shop to sale all things what they found. They have everage 800-1000 baht per day, I saw they look like many day did not take a shower, dirty cloths and poor. I asked this people (father of those children) where do you live? He said; I have no house and we sleep everywhere that we find the place such as under the bridge, beside the road, etc. and take a shower in the canal. All the money that they earn, they use for survise and also keep for buy some old metal or other things from other peoples then sale again to recycle shop. I count they can earn money more than people who work in the bank, if they manage their money good they can get better life soon. I hope for them.

[justcruisin]

It is quiet amazing actually..the families who I have known in rural areas of Australia displayed the same traits..living a spendthrift life whilst having massive yearly income,then buying another property for 1 or 2Mill dollars every couple of years and living like hermits in the country with very little or no contact with other people.

My thai neighbour and his wife have 5 houses in Chiangmai and a couple of farms,they only retired at the age of 60 last year,after a working overseas for many years as a chef working in high class hotels in USA and Australia.

Just go's to show you can't judge a book by its cover.

No pretence..just good financial management of their lives.

I think a lot of western people still have to learn it is not easy nor desirable to try to emulate other peoples lifestyles,just do the best for #1

[kiakaha]

Looks can be very deceiving.

The richest man, and 2nd largest landholder, in my amphur wears shitty tracksuits, drives a beat up old Toyota and lives in a couple of rooms at the front of his 150B per night budget hotel.

Almost everyone in the amphur, who has a new car has bought it on credit & in many instances, they couldn't come up with 10,000B if their lives depended on it.

There is probably 50k+ people living in my amphur & all the wealth, land and business is owned by around ten large, wealthy families or large, usually public listed, companies. All the remaining crumbs are scatered piecemeal amongst the remainder of the population.

The irony is that what would be considered wealthy in the west, say a net worth of a couple of million dollars, wouldn't even raise an eyebrow amongst the wealthy Thai's in my area.

Cheers,

Soundman.

The patriach of the PatpongPanich family (yes, they own all the Patpong land) walks around Patpong in beach shorts and flip flops.Looks like a street vendor.

[thaihome]

There is indeed plenty of small manufacturing, but Thailand remains predominately rural. And most of the people farming the land do not actually own the land but rent it Thai style, which means they pay 50% of the harvest to the landlord. Over the past 30 or so years many of those who owned land outside the major cities, like Chiang Mai, sold their padi land to land developers who built all those red tiled roof housing developments favored by the new middle class and ex-pats. These folks, those who did not squander their windfall, then went out and bought agricultural land further afield from struggling rural families. Their main daytime job is to drive over once or twice a year to check on their tenants and collect their yearly income.

If they had a male Chinese connection they might have invested into manufacturing in town as they would have also perhaps had access to credit. And either way, if they preferred to reside in the more rural areas alongside family, usually the wife's family, her sisters, then they would stay and avoid any ostentatious life style for a number of reasons. Besides, being wealthy up-country is not the same as being wealthy in Bangkok. They can afford a nice car while residing in the countryside where there are few expenses and the house land was often inherited, but would not be able to do so if they were to move into an urban environment.

It's too bad the facts do not support your perception of what you would like Thailand to be. With a workforce of some 37 million people, about 14 million work in agriculture, almost 22 million work in "non-agriculture". Doesn't sound "predominately rural" to me.

TH

[Heng]

There are all types. The endless stream of 'baffled' folks is pretty amusing though.

[Johpa]

It's too bad the facts do not support your perception of what you would like Thailand to be. With a workforce of some 37 million people, about 14 million work in agriculture, almost 22 million work in "non-agriculture". Doesn't sound "predominately rural" to me.

TH

Depends on your perspective I guess. And rest assured my perception is not based merely upon my likes or hopes. Many of those who work in the non-agricultural areas are workers from rural areas who still maintain legal residences, tabian baan, in the rural areas. In the cities they tend to live in dorms or, as we read in the newspapers all too often, temporary slums. Some of these folks will be successful and become urban dwellers. But most remain rural folks who will return to the rural areas. I suppose that my perception is different than many here as the vast majority of my time in-country has been spent living and interacting amongst those rural folks.

[lifeisrandom]

with all due respect,

it sounds like farang here are repeating stories their gf told them that she was told

"oh they sooooo simple, have 122024 billion baht and walk to market to buy apples themselves"

i am sure they have many trips to bkk and 5 star hotels mixed in with their simple living. rich people in small villages are thrown into political roles and must play a role like an actor if they dont want to be burned alive by the peasants.

[Heng]

rich people in small villages are thrown into political roles and must play a role like an actor if they dont want to be burned alive by the peasants.

Nah, they're too lazy and unorganized to get one of those burned at the stake parties set up.

[lifeisrandom]

well that is lucky.

i have seen some of those celebrity cribs on thai tv and i am always surprised at the lack of security and the rural surroundings. they arent scared of some late night yaba uped visitors? everyone must know where all the really nice, really pretty houses are in their little village.