Why Does The Thailand Economy So Resilient?

[Renoir]

Hi,

Thailand has been hit by a tsunami, numerous demonstrations and some of them violent, a flood, political instability and most people on this forum seems to think that the government is not doing a good job. However, the economy had been growing steadily and the value of the Baht is strong. Why do you think the economy is so resilient?

Renoir

[lovelomsak]

I thought this flood made it apparent why Thailand is resilient and baht is strong. Their labour force is the most necessary labour force right now in the world. Look what happened to the auto manufacturing industries in other countries when Thailands exports quit because of floods. All electronic industry the world over was effected. When Thailand is at a stand still the world has to wait till it it gets going again. Most large companies have put all their eggs in one cheap labour basket.

Thai cheap labour wil keep industry here and the baht will remain strong. All the dreamers here that think their countries are in control are exactly that dreamers. See how long the USA could survive without Thailand as a trade partner. Japan couldnot be worldly competitive in the auto industry without Thailand.

As long as labour is cheap and controlled by a few Thailand will keep the trade and baht strong.

Why do you think we had the coup in 2006?

Edited November 13, 2011 by lovelomsak

[4.real]

I thought this flood made it apparent why Thailand is resilient and baht is strong. Their labour force is the most necessary labour force right now in the world. Look what happened to the auto manufacturing industries in other countries when Thailands exports quit because of floods. All electronic industry the world over was effected. When Thailand is at a stand still the world has to wait till it it gets going again. Most large companies have put all their eggs in one cheap labour basket.

Thai cheap labour wil keep industry here and the baht will remain strong. All the dreamers here that think their countries are in control are exactly that dreamers. See how long the USA could survive without Thailand as a trade partner. Japan couldnot be worldly competitive in the auto industry without Thailand.

As long as labour is cheap and controlled by a few Thailand will keep the trade and baht strong.

Why do you think we had the coup in 2006?

Apologies this should have been in reply to the O.P.

There is no welfare state.

Impoverished Immigrants do NOT get preferential [none in fact]free housing on arrival.

Nor do they get free health care including expensive cancer treatment.

Education is not a free'human right ' to any child .

Government papers are not printed in up to 30 different languages.

Schools do not have mutiple costly interpreters.

there are no open borders.....

And,to the best of my knowledge,there are no government funded,costly social workers [mainly of immigrant parentage] informing the 'poor' of all their rights to government 'benefits'

Anything else you need to know?

Edited November 13, 2011 by 4.real

[lovelomsak]

I thought this flood made it apparent why Thailand is resilient and baht is strong. Their labour force is the most necessary labour force right now in the world. Look what happened to the auto manufacturing industries in other countries when Thailands exports quit because of floods. All electronic industry the world over was effected. When Thailand is at a stand still the world has to wait till it it gets going again. Most large companies have put all their eggs in one cheap labour basket.

Thai cheap labour wil keep industry here and the baht will remain strong. All the dreamers here that think their countries are in control are exactly that dreamers. See how long the USA could survive without Thailand as a trade partner. Japan couldnot be worldly competitive in the auto industry without Thailand.

As long as labour is cheap and controlled by a few Thailand will keep the trade and baht strong.

Why do you think we had the coup in 2006?

Apologies this should have been in reply to the O.P.

There is no welfare state.

Impoverished Immigrants do NOT get preferential [none in fact]free housing on arrival.

Nor do they get free health care including expensive cancer treatment.

Education is not a free'human right ' to any child .

Government papers are not printed in up to 30 different languages.

Schools do not have mutiple costly interpreters.

there are no open borders.....

And,to the best of my knowledge,there are no government funded,costly social workers [mainly of immigrant parentage] informing the 'poor' of all their rights to government 'benefits'

Anything else you need to know?

If I read this right these are your reasons for a resilient economy? What I read is why it has cheap labour. So same as my post cheap labour is the drawing card. Cheap labour of course has all the problems you mention. Sorry for thinking that was already understood by the educated, in my post.

Edited November 13, 2011 by lovelomsak

[farang000999]

Thailand benefits largely from all the cheap labor that exists because of all the people from Vietnam, Cambodia, Myanmar. whether multi national companies hire these illegal aliens or they work for Thais, it is the same end result, very very very cheap labor as they supply of humans is huge.

while the thai economy is "strong", most thais have miserable lives and live hand to mouth.

this is something largely misleading when we talk about "strong economies"... thailand is a banana republic at the end of the day.

western countries are making tons of bad decisions though and w/ all the corruption if westerners dont get their head out of their ass soon they will also live in a banana republic.

Edited November 13, 2011 by farang000999

[waza]

Yep a centeralised location, subsidised set up costs, legal pollution, low insurance low energy and labour costs, have made Thailand a hub of manufacturing. Its also a tourist hub and the rice basket of Asia. All these exports give Thailand a current account surplus.

Thailand Current Account

Thailand reported a current account surplus equivalent to 404 Million USD in September of 2011.look here That means even though Thailand was flooded all month they still made 1,250,000.000 baht profit in September.

Edited November 13, 2011 by waza

[farang000999]

Any by "they" we mean the 1% of Thais that own the factories of all that stuff the slaves workers created.

[Kwasaki]

Thailand Economy So Resilient ? OP !!! No idea really, always thought the baht goes up and down according to what the US dollar does.

1. There is no welfare state.

2. Impoverished Immigrants do NOT get preferential [none in fact]free housing on arrival.

3. Nor do they get free health care including expensive cancer treatment.

4. Education is not a free'human right ' to any child .

5. Government papers are not printed in up to 30 different languages.

6. Schools do not have mutiple costly interpreters.

7. There are no open borders.....

8. And,to the best of my knowledge,there are no government funded,costly social workers [mainly of immigrant parentage] informing the 'poor' of all their rights to government 'benefits'

9. Anything else you need to know?

1. Mother-law get money each month from the government and the brother in-law because he cannot work. !!

2. No don't want it either but at least they send em back. !!

3. Thai people do get free health but still have to pay for some medication, as for cancer if your poor, times up. !!

4. Two of my young family get free schooling in government schools. !!

5. Quite right too, why you need more than two. !!

6. What you need them for, not necessary anyhow. !!

7. As 2 good job an all. !!

8. As 7 good job an all. !!

9. Well !! not really thanks, 3 ish out of 8 not bad.

Edited November 13, 2011 by Kwasaki

[isanbirder]

IMO most of these answers are barking up the wrong tree. There are two basic reasons why the Thai economy is resilient:-

1. Self-sufficiency in food.

2. No debt to service (the country has reserves, not debts).

[Ricardo]

Perhaps the Thai economy is merely more resilient, than those of the countries we come from, which explains the stronger Baht ?

Also it's growing from a low starting-point, so apparent higher-growth may just be catch-up, compared with elsewhere ?

Thailand & S.E.Asia experienced a crash in 1997/8, and then didn't allow their banks to buy cruddy investments, created in the bastions of capitalism, and backed by a world-wide property-bubble, amongst other things ! Even so, the banks appear very-unwilling (IME), to write-down the losses of that previous time.

Thai social-welfare appears to consist mainly of aged-parents whose kids support them, whilst they look after the grandchildren, and unemployment means returning to the agricultural areas from which many workers originally came ? A cheap-but-bad hospital-system, and a similar education-system, aren't too expensive to maintain. The government old-age pension is 500B/month. Rural roads are topped with 1-2 inches of tarmac, which is mainly sand/gravel, bound together with the minimum of tar, and these wear out just as quickly as you'd expect. The rail-system is old & clapped-out.

But we still seem to enjoy living here, most of us, and most of the time !

Edited November 13, 2011 by Ricardo

[lovelomsak]

I hope my math is right on this one.

An auto worker in a plant in America is said to cost the company $70 an hour including all the benefit packages. With that in mind a 40 hour week to employ him costs $2800. The cost for a Thai worker is $6.50 a day, with no benefits. So one weeks 40 hour weeks cost for an american auto worker will get you 89 thai auto workers for a week. The big companies want the cheap labour, and the economy stays strong. I amnot judging it just feel this is whats gives the country the power to maintain its resiliency.

[roamer]

The question has to be will it remain resilient ? Before the floods there were concerns about whether it could continue to attract the foreign investment, essential to its growth, in the face of growing competition from the new kids on the block.

I think the answer to that might now be no.

Can it hold on to what it has ? Just one of many factors may be the massive hikes in insurance costs for companies doing business in LOS.

Its wait and see time.

[theblether]

I thought this flood made it apparent why Thailand is resilient and baht is strong. Their labour force is the most necessary labour force right now in the world. Look what happened to the auto manufacturing industries in other countries when Thailands exports quit because of floods. All electronic industry the world over was effected. When Thailand is at a stand still the world has to wait till it it gets going again. Most large companies have put all their eggs in one cheap labour basket.

Thai cheap labour wil keep industry here and the baht will remain strong. All the dreamers here that think their countries are in control are exactly that dreamers. See how long the USA could survive without Thailand as a trade partner. Japan couldnot be worldly competitive in the auto industry without Thailand.

As long as labour is cheap and controlled by a few Thailand will keep the trade and baht strong.

Why do you think we had the coup in 2006?

At the risk of being cheeky, you are joking right? Do you contend that the world is at the behest of Thailand? I think you can be rest assured that the car manufacturers are now looking at relocating their factories, for precisely the reasons you mentioned. They can't afford disruption to supplies.

[KeyserSoze01]

I hope my math is right on this one.

An auto worker in a plant in America is said to cost the company $70 an hour including all the benefit packages. With that in mind a 40 hour week to employ him costs $2800. The cost for a Thai worker is $6.50 a day, with no benefits. So one weeks 40 hour weeks cost for an american auto worker will get you 89 thai auto workers for a week. The big companies want the cheap labour, and the economy stays strong. I amnot judging it just feel this is whats gives the country the power to maintain its resiliency.

Some would call this exploitation while others would call it good business.

Once the lower classes begin to pull themselves up out of the muck, they will demand wage equality to the rest of the world. Yet another reason for the elites to keep the genie in the bottle and the the rice farmers in the fields.

[roamer]

I hope my math is right on this one.

An auto worker in a plant in America is said to cost the company $70 an hour including all the benefit packages. With that in mind a 40 hour week to employ him costs $2800. The cost for a Thai worker is $6.50 a day, with no benefits. So one weeks 40 hour weeks cost for an american auto worker will get you 89 thai auto workers for a week. The big companies want the cheap labour, and the economy stays strong. I amnot judging it just feel this is whats gives the country the power to maintain its resiliency.

Some would call this exploitation while others would call it good business.

Once the lower classes begin to pull themselves up out of the muck, they will demand wage equality to the rest of the world. Yet another reason for the elites to keep the genie in the bottle and the the rice farmers in the fields.

The math is rather simplistic I'm afraid, there are other cost factors involved. But your not comparing like with like, Thailand to the USA. You should be comparing Thailand to places like Vietnam because that is where a lot of FDI (foreign direct investment) is heading and the flood will only increase that. Do you realise how much the costs of this will be to companies with their supply chains disrupted affecting manufacture all around the globe ? You really think they are just going to mark it up as a one off event and be content to go back to work like nothing has happened ?

Thailand may hold onto the auto industry, it will have a lot harder task to hold onto electronics manufacturers and similar industries which are easier to relocate.

And yes the demands for wage equality in a country where a high baht makes life more costly for all can't be too far away.

The future ? Oh yes, must not forget the massive investments in areas like education that could lead to innovation must we ?

[4.real]

I thought this flood made it apparent why Thailand is resilient and baht is strong. Their labour force is the most necessary labour force right now in the world. Look what happened to the auto manufacturing industries in other countries when Thailands exports quit because of floods. All electronic industry the world over was effected. When Thailand is at a stand still the world has to wait till it it gets going again. Most large companies have put all their eggs in one cheap labour basket.

Thai cheap labour wil keep industry here and the baht will remain strong. All the dreamers here that think their countries are in control are exactly that dreamers. See how long the USA could survive without Thailand as a trade partner. Japan couldnot be worldly competitive in the auto industry without Thailand.

As long as labour is cheap and controlled by a few Thailand will keep the trade and baht strong.

Why do you think we had the coup in 2006?

Apologies this should have been in reply to the O.P.

There is no welfare state.

Impoverished Immigrants do NOT get preferential [none in fact]free housing on arrival.

Nor do they get free health care including expensive cancer treatment.

Education is not a free'human right ' to any child .

Government papers are not printed in up to 30 different languages.

Schools do not have mutiple costly interpreters.

there are no open borders.....

And,to the best of my knowledge,there are no government funded,costly social workers [mainly of immigrant parentage] informing the 'poor' of all their rights to government 'benefits'

Anything else you need to know?

If I read this right these are your reasons for a resilient economy? What I read is why it has cheap labour. So same as my post cheap labour is the drawing card. Cheap labour of course has all the problems you mention. Sorry for thinking that was already understood by the educated, in my post.

I should have added .'There is no need to work for a low wage..No need to work at all. The government of Britain [cannot speak for the other European countries] will pay you more than the minimum wage to stay at home watching tv and producing vast numbers of offspring .

These offspring will learn that you can live quite happily in England without the hassle of getting up in the morning to go to work.

[Thaddeus]

IMO most of these answers are barking up the wrong tree. There are two basic reasons why the Thai economy is resilient:-

1. Self-sufficiency in food.

2. No debt to service (the country has reserves, not debts).

Nope, they are barking up the right tree, but at the wrong cat.

[elliss]

IMO most of these answers are barking up the wrong tree. There are two basic reasons why the Thai economy is resilient:-

1. Self-sufficiency in food.

2. No debt to service (the country has reserves, not debts).

Nope, they are barking up the right tree, but at the wrong cat.

it is the pathetic value of the USD, uncle sam.s demise ,

along with the GBP, good bog paper,

that make the thai baht , appear stronger .

this is the NEW natural norm of the world economy .

you have been warned .

:jap:

[roamer]

I thought this flood made it apparent why Thailand is resilient and baht is strong. Their labour force is the most necessary labour force right now in the world. Look what happened to the auto manufacturing industries in other countries when Thailands exports quit because of floods. All electronic industry the world over was effected. When Thailand is at a stand still the world has to wait till it it gets going again. Most large companies have put all their eggs in one cheap labour basket.

Thai cheap labour wil keep industry here and the baht will remain strong. All the dreamers here that think their countries are in control are exactly that dreamers. See how long the USA could survive without Thailand as a trade partner. Japan couldnot be worldly competitive in the auto industry without Thailand.

As long as labour is cheap and controlled by a few Thailand will keep the trade and baht strong.

Why do you think we had the coup in 2006?

Apologies this should have been in reply to the O.P.

There is no welfare state.

Impoverished Immigrants do NOT get preferential [none in fact]free housing on arrival.

Nor do they get free health care including expensive cancer treatment.

Education is not a free'human right ' to any child .

Government papers are not printed in up to 30 different languages.

Schools do not have mutiple costly interpreters.

there are no open borders.....

And,to the best of my knowledge,there are no government funded,costly social workers [mainly of immigrant parentage] informing the 'poor' of all their rights to government 'benefits'

Anything else you need to know?

If I read this right these are your reasons for a resilient economy? What I read is why it has cheap labour. So same as my post cheap labour is the drawing card. Cheap labour of course has all the problems you mention. Sorry for thinking that was already understood by the educated, in my post.

I should have added .'There is no need to work for a low wage..No need to work at all. The government of Britain [cannot speak for the other European countries] will pay you more than the minimum wage to stay at home watching tv and producing vast numbers of offspring .

These offspring will learn that you can live quite happily in England without the hassle of getting up in the morning to go to work.

Take 'em out and shoot them ?

[Thongkorn]

Thailand and other Asian country's will have labour problems in the future , they are about 50 years behind the West. as Food prices go up and commodities they will want more money, then they will join Unions and on we go Europe in the sixty's, The same goes for China, its happening now.

[onionluke]

Shoot them at the end of the job . Ask yourself , who will be doing the shooting ?

[johna]

yes you are all correct, its cheap labour that keeps the Thai economy strong, and the average Thai uneducated minimum wage earner is wearing a red shirt to show solidarity with his educated minimum wage OWS counterpart.

[onionluke]

yes you are all correct, its cheap labour that keeps the Thai economy strong, and the average Thai uneducated minimum wage earner is wearing a red shirt to show solidarity with his educated minimum wage OWS counterpart.

Welcome to the new capitalism .

What is OWS ? ( I don't know )

It's a long day in the field , and in the sun any old shirt will do . Try it .

[theblether]

The old saying........

There are three kinds of lies, lies, damned lies, and statistics.

In the recent past the US would expect growth rates of 2 - 3% every year.

Here in Thailand they get hot about growing 8% in a year. If the US grew by 2.2% in a singular year it was the equivalent of the entire GDP of Thailand.

Last month the UK growth was 0.5%, that annual growth works out at a 1/3rd of the total GDP of Thailand.

There's some perspective for you huh? and if that isn't enough, if you looked at the per capita income of the new powerhouse China, it ranks at number 98 in the world.......

China and Thailand might have currency reserves but that is only because they are not funding the necessary services for their populace. If that is the social model you would like to embrace then good for you. I'll choose the UK way any day.

One of the major problems that Thailand has is that it's economy is reliant on tourism and foreign owned manufacturing. You can bet there conversations taking place now at Toyota and Honda amongst many many others about what to do with their Thai manufacturing bases in light of the recent floods. The Thai government is in no position to prevent foreign owned businesses from re-locating.

So there's the nub of the problem.........Thailand is overly reliant on foreign manufacturers and tourists. They need to grow far more indigenous businesses.

[onionluke]

The old saying........

There are three kinds of lies, lies, damned lies, and statistics.

In the recent past the US would expect growth rates of 2 - 3% every year.

Here in Thailand they get hot about growing 8% in a year. If the US grew by 2.2% in a singular year it was the equivalent of the entire GDP of Thailand.

Last month the UK growth was 0.5%, that annual growth works out at a 1/3rd of the total GDP of Thailand.

There's some perspective for you huh? and if that isn't enough, if you looked at the per capita income of the new powerhouse China, it ranks at number 98 in the world.......

China and Thailand might have currency reserves but that is only because they are not funding the necessary services for their populace. If that is the social model you would like to embrace then good for you. I'll choose the UK way any day.

One of the major problems that Thailand has is that it's economy is reliant on tourism and foreign owned manufacturing. You can bet there conversations taking place now at Toyota and Honda amongst many many others about what to do with their Thai manufacturing bases in light of the recent floods. The Thai government is in no position to prevent foreign owned businesses from re-locating.

So there's the nub of the problem.........Thailand is overly reliant on foreign manufacturers and tourists. They need to grow far more indigenous businesses.

I will add that that is , but .......

Linton Kwesi Johnston Edited November 14, 2011 by onionluke

[Thaddeus]

What is OWS ? ( I don't know )

Out of Work Scousers ...... but that is primarily by choice.

[onionluke]

What is OWS ? ( I don't know )

Out of Work Scousers ...... but that is primarily by choice.

All the best lads I ever met apart from thee ......

[Thaddeus]

What is OWS ? ( I don't know )

Out of Work Scousers ...... but that is primarily by choice.

All the best lads I ever met apart from thee ......

I'm from Liverpool

[lovelomsak]

Thailand and other Asian country's will have labour problems in the future , they are about 50 years behind the West. as Food prices go up and commodities they will want more money, then they will join Unions and on we go Europe in the sixty's, The same goes for China, its happening now.

I see your point about the future if it wasnot Asia. Anyone trying to unionise or get more for the workers will more than likely be shot in the street or his whole family anniliated. Asia power groups donot deal with things the same as caucasians. People still donot understand life has no value here and it willnot change in the near or distant future. Cheap labour is the life source for the rich and powerful in Asia they willnot give it up.I amnot saying it is right or wrong just stating the obvious. The countries will just become more corrupt and more dangerous or as some would say will go complete circle,back to where they started. 50 years ago tourists didnot come to many places in Asia too dangerous and too corrupt. The question is will business still be done with them, for the cheap labour and services?

[theblether]

The old saying........

There are three kinds of lies, lies, damned lies, and statistics.

In the recent past the US would expect growth rates of 2 - 3% every year.

Here in Thailand they get hot about growing 8% in a year. If the US grew by 2.2% in a singular year it was the equivalent of the entire GDP of Thailand.

Last month the UK growth was 0.5%, that annual growth works out at a 10% of the total GDP of Thailand.

There's some perspective for you huh? and if that isn't enough, if you looked at the per capita income of the new powerhouse China, it ranks at number 98 in the world.......

China and Thailand might have currency reserves but that is only because they are not funding the necessary services for their populace. If that is the social model you would like to embrace then good for you. I'll choose the UK way any day.

One of the major problems that Thailand has is that it's economy is reliant on tourism and foreign owned manufacturing. You can bet there conversations taking place now at Toyota and Honda amongst many many others about what to do with their Thai manufacturing bases in light of the recent floods. The Thai government is in no position to prevent foreign owned businesses from re-locating.

So there's the nub of the problem.........Thailand is overly reliant on foreign manufacturers and tourists. They need to grow far more indigenous businesses.