Toshiba To Keep Production Base In Thailand

[webfact]

Toshiba to Keep Production Base in Thailand

BANGKOK: -- Toshiba affirms it will keep its production base in Thailand even though it was affected by last year's devastating floods. However, the company remains worried about political conflicts and other unpredictable natural disasters.

Product and Marketing Manager of Toshiba Thailand, Suthee Suwongwattanakul disclosed that the Toshiba plant at the Bangkadi Industrial Estate in Pathum Thani Province has resumed production at 70 to 80 percent capacity after operations were halted due to last year's floods.

The manager added that the company has no plan to relocate its base to other countries and has implemented flood prevention measures. Furthermore, the company has been preparing a budget to invest in new products this year.

Growth sales projection is targeted at 40 to 50 percent this year, particularly for tablets and touchscreen desktop products.

However, the company remains concerned about political conflicts and unpredictable natural disasters.

A shortage of labor is another issue of concern because the company has been expanding its investment gradually.

Suthee stated the minimum wage hike to 300 baht will not impact the firm as it has been paying wage of more than that amount to its employees.

In the meantime, Intel Micro Electronics of Thailand Marketing Manager, Datchani Prukwattananont believes that the IT business in Thailand will continue to see steady growth.

IT firms are preparing for the “2012 Com Mart Thailand” which will be the first and largest IT event of this year.

It will be held from March 22 to 25 at the Queen Sirikit National Convention Center.

Organizers expect nearly three billion baht to be generated from the sales of IT devices such tablets, notebooks, smart phones and other accessories.

-- Tan Network 2012-03-01

[webfact]

FLOODS

Most Japanese companies to stay in Thailand despite floods

Most Japanese companies with subsidiaries in Thailand plan to stay in their current locations despite last year's devastating floods, a Japanese trade official said Thursday.

Thai-Japanese Chamber of Commerce official Yoshito Kato said only three Japanese electronics manufacturing companies have made plans to relocate as a result of the floods, which badly disrupted supply chains dependent on factories located in industrial zones north of the Thai capital.

"Most of these companies will stay in the same locations in Thailand, that’s for sure," Kato said.

"Most of the companies will be back to full capacity by April or May," he added.

According to a survey of Thai-Japanese joint ventures published this week by the Japan External Trade Organisation, some 8 per cent of the 366 respondents said they planned to relocate to other countries, including Malaysia, Indonesia or Vietnam.

The survey said about 64 per cent of the responding Japanese companies see overall business conditions in Thailand improving, while 18 per cent were pessimistic.

Prime Minister Yingluck Shinawatra is scheduled to visit Japan on March 6-9 in a bid to regain the confidence of Japanese investors.

Kato said Japanese investors hoped Yingluck’s government would implement effective flood-prevention policies and keep Japanese-based companies informed of its plans.

-- The Nation 2012-03-01

[Unkomoncents]

That's great news for Thailand. Some of the current government's real efforts to consolidate flood management powers (even if not yet completely successful) and the development of water retention infrastructure must be partly behind Japanese manufacturers' general vote for confidence. I also would have to think that Japan's own economic straights (strong yen and the Fukushima Disaster) would disincentivize Japanese companies from abandoning the massive investments they've made in Thailand's logistical networks. I certainly hope things hold together. To lose large numbers of Japanese companies would be a major crisis for Thailand.

[philw]

That's great news for Thailand. Some of the current government's real efforts to consolidate flood management powers (even if not yet completely successful) and the development of water retention infrastructure must be partly behind Japanese manufacturers' general vote for confidence. I also would have to think that Japan's own economic straights (strong yen and the Fukushima Disaster) would disincentivize Japanese companies from abandoning the massive investments they've made in Thailand's logistical networks. I certainly hope things hold together. To lose large numbers of Japanese companies would be a major crisis for Thailand.

Worthy of note that 2 positive stories get almost no response from the forum.

I bet there would have been about 50 posts by now if the headline had been to the effect that they were pulling out.

Says a lot about those who populate thaivisa.

Edited March 1, 2012 by philw

[Reasonableman]

And your supercilious contribution is to whine. So that's all you're here for?

That's great news for Thailand. Some of the current government's real efforts to consolidate flood management powers (even if not yet completely successful) and the development of water retention infrastructure must be partly behind Japanese manufacturers' general vote for confidence. I also would have to think that Japan's own economic straights (strong yen and the Fukushima Disaster) would disincentivize Japanese companies from abandoning the massive investments they've made in Thailand's logistical networks. I certainly hope things hold together. To lose large numbers of Japanese companies would be a major crisis for Thailand.

Worthy of note that 2 positive stories get almost no response from the forum.

I bet there would have been about 50 posts by now if the headline had been to the effect that they were pulling out.

Says a lot about those who populate thaivisa.

[philw]

And your supercilious contribution is to whine. So that's all you're here for?

That's great news for Thailand. Some of the current government's real efforts to consolidate flood management powers (even if not yet completely successful) and the development of water retention infrastructure must be partly behind Japanese manufacturers' general vote for confidence. I also would have to think that Japan's own economic straights (strong yen and the Fukushima Disaster) would disincentivize Japanese companies from abandoning the massive investments they've made in Thailand's logistical networks. I certainly hope things hold together. To lose large numbers of Japanese companies would be a major crisis for Thailand.

Worthy of note that 2 positive stories get almost no response from the forum.

I bet there would have been about 50 posts by now if the headline had been to the effect that they were pulling out.

Says a lot about those who populate thaivisa.

Do you understand what an "observation" is, reasonable man ??

[Reasonableman]

Yes, and that was not one. You sought to denigrate other members. A snide and pointless "observation".

And your supercilious contribution is to whine. So that's all you're here for?

That's great news for Thailand. Some of the current government's real efforts to consolidate flood management powers (even if not yet completely successful) and the development of water retention infrastructure must be partly behind Japanese manufacturers' general vote for confidence. I also would have to think that Japan's own economic straights (strong yen and the Fukushima Disaster) would disincentivize Japanese companies from abandoning the massive investments they've made in Thailand's logistical networks. I certainly hope things hold together. To lose large numbers of Japanese companies would be a major crisis for Thailand.

Worthy of note that 2 positive stories get almost no response from the forum.

I bet there would have been about 50 posts by now if the headline had been to the effect that they were pulling out.

Says a lot about those who populate thaivisa.

Do you understand what an "observation" is, reasonable man ??

[philw]

Bit oversensitive aren't we ???

Can you show me or explain the denigration in a fair observation??

[tlansford]

Yes, and that was not one. You sought to denigrate other members. A snide and pointless "observation".

And your supercilious contribution is to whine. So that's all you're here for?

- sniper -

Worthy of note that 2 positive stories get almost no response from the forum.

I bet there would have been about 50 posts by now if the headline had been to the effect that they were pulling out.

Says a lot about those who populate thaivisa.

Do you understand what an "observation" is, reasonable man ??

Don't be offended reasonableman. Your posts tend to be quite reasonable.

So are philw's.

And this one from philw is IMO, accurate. While it is certainly partly human nature, there is a population on TVF dedicated to maligning and blaming the govt at every opportunity. It is a bit of a knee-jerk reaction, I think.

Regarding Toshiba, it seems from the article that they are not moving the plant. I can only speculate on why, but it is good for the industry to see that Tosh is at 70 - 80% production again.

Also interesting is that the minimum wage increase has no impact on Tosh. Regarding foreign firms investing in Thailand, this is one of the important points. The Thai min wage is often not a factor.

I am curious if anyone is going to the “2012 Com Mart Thailand” at the end of the month?

[catmac]

Bit oversensitive aren't we ???

Can you show me or explain the denigration in a fair observation??

Of course he can't, but wait for it, any moment now someone will be shouting "Thaksin, Thaksin"!

[Reasonableman]

Actuallly, the comment was not an observation, it was a denigration, so let's not feign shock-horror. My reaction was apolitical, unlike your own. A sideswiped negative generalisation about members is superfluous and inappropriate. You are also members, are you not? It was offensive to all members, and self-promoting, therefore deserving of my comment. The Thaksin etc., political inference is yours, and irrelevant, but that is your issue, not mine.

[jchfriis]

"However, the company remains worried about political conflicts and other unpredictable natural disasters."

I guess with politicians being what they are all over the world, you could call them a natural disaster!

[yoshiwara]

Large companies like Toshiba rarely make a sudden decision to up sticks and leave a substantial investment. They have put down a marker of concern and will no doubt review the situation and see if the Government implements necessary changes. They will have to deal with the effect of single events disrupting production centralised in one location/one country, but these plans take time. Meanwhile Thailand is considered relatively stable compared to alternative locations which have their own problems. Japanese companies do not want to put all their eggs in the Chinese basket so Japanese FI in Thailand continues for now.

[phiphidon]

Actuallly, the comment was not an observation, it was a denigration, so let's not feign shock-horror. My reaction was apolitical, unlike your own. A sideswiped negative generalisation about members is superfluous and inappropriate. You are also members, are you not? It was offensive to all members, and self-promoting, therefore deserving of my comment. The Thaksin etc., political inference is yours, and irrelevant, but that is your issue, not mine.

Well here's an observation for you - just a selection of posts from the glass always empty brigade ( wrt this government and Japanese investment after the floods )

He (Abhisit) can't make promises for the government, but he can say what he thinks is happening,

and what he would do if he returns to office in the future. And if he can plug the hemorrhage

of Japanese cash leaving Thailand for safer investments, he helps Thailand in a large way.

8-30% of Japanese investment not returning post flood, numbers Yingluck apparently

is not capable of correcting.

8% is no laughing matter.

Incompetence, sloth and greed runs off the a significant segment of industry that gives jobs and pays taxes.

Clearly the owners don't believe the anti-Flood government propaganda campaign and are voting with their feet and their assets

A factory owner friend from Pathum Thani told me a month ago that in his industrial estate, which didn't flood, roughly 30% of tenants discontinued their contracts in the immediate aftermath of the floods (November).

I met an engineer from a very well know company who said he's been instructed to start looking at alternatives. Not good for Thailand.

Thailand increased the minimum wage, attempting to stimulate domestic demand and grow local industry to insulate it from external shocks in the USA and Europe - the floods have effectively run alongside the wage rise to leave big business questioning if bigger profits can be made easier, on other shores (in Vietnam, Cambodia, Burma).

Now tell me what Phil W said was wrong.

[Reasonableman]

Actuallly, the comment was not an observation, it was a denigration, so let's not feign shock-horror. My reaction was apolitical, unlike your own. A sideswiped negative generalisation about members is superfluous and inappropriate. You are also members, are you not? It was offensive to all members, and self-promoting, therefore deserving of my comment. The Thaksin etc., political inference is yours, and irrelevant, but that is your issue, not mine.

Well here's an observation for you - just a selection of posts from the glass always empty brigade ( wrt this government and Japanese investment after the floods )

He (Abhisit) can't make promises for the government, but he can say what he thinks is happening,

and what he would do if he returns to office in the future. And if he can plug the hemorrhage

of Japanese cash leaving Thailand for safer investments, he helps Thailand in a large way.

8-30% of Japanese investment not returning post flood, numbers Yingluck apparently

is not capable of correcting.

8% is no laughing matter.

Incompetence, sloth and greed runs off the a significant segment of industry that gives jobs and pays taxes.

Clearly the owners don't believe the anti-Flood government propaganda campaign and are voting with their feet and their assets

A factory owner friend from Pathum Thani told me a month ago that in his industrial estate, which didn't flood, roughly 30% of tenants discontinued their contracts in the immediate aftermath of the floods (November).

I met an engineer from a very well know company who said he's been instructed to start looking at alternatives. Not good for Thailand.

Thailand increased the minimum wage, attempting to stimulate domestic demand and grow local industry to insulate it from external shocks in the USA and Europe - the floods have effectively run alongside the wage rise to leave big business questioning if bigger profits can be made easier, on other shores (in Vietnam, Cambodia, Burma).

Now tell me what Phil W said was wrong.

Sorry, you'll have to play that game alone. Enjoy your evening.

[phiphidon]

Actuallly, the comment was not an observation, it was a denigration, so let's not feign shock-horror. My reaction was apolitical, unlike your own. A sideswiped negative generalisation about members is superfluous and inappropriate. You are also members, are you not? It was offensive to all members, and self-promoting, therefore deserving of my comment. The Thaksin etc., political inference is yours, and irrelevant, but that is your issue, not mine.

Well here's an observation for you - just a selection of posts from the glass always empty brigade ( wrt this government and Japanese investment after the floods )

He (Abhisit) can't make promises for the government, but he can say what he thinks is happening,

and what he would do if he returns to office in the future. And if he can plug the hemorrhage

of Japanese cash leaving Thailand for safer investments, he helps Thailand in a large way.

8-30% of Japanese investment not returning post flood, numbers Yingluck apparently

is not capable of correcting.

8% is no laughing matter.

Incompetence, sloth and greed runs off the a significant segment of industry that gives jobs and pays taxes.

Clearly the owners don't believe the anti-Flood government propaganda campaign and are voting with their feet and their assets

A factory owner friend from Pathum Thani told me a month ago that in his industrial estate, which didn't flood, roughly 30% of tenants discontinued their contracts in the immediate aftermath of the floods (November).

I met an engineer from a very well know company who said he's been instructed to start looking at alternatives. Not good for Thailand.

Thailand increased the minimum wage, attempting to stimulate domestic demand and grow local industry to insulate it from external shocks in the USA and Europe - the floods have effectively run alongside the wage rise to leave big business questioning if bigger profits can be made easier, on other shores (in Vietnam, Cambodia, Burma).

Now tell me what Phil W said was wrong.

Sorry, you'll have to play that game alone. Enjoy your evening.

It's not a game - it's the reality of posts on this forum. Good evening.

[witsawakorn]

That's great news for Thailand. Some of the current government's real efforts to consolidate flood management powers (even if not yet completely successful) and the development of water retention infrastructure must be partly behind Japanese manufacturers' general vote for confidence. I also would have to think that Japan's own economic straights (strong yen and the Fukushima Disaster) would disincentivize Japanese companies from abandoning the massive investments they've made in Thailand's logistical networks. I certainly hope things hold together. To lose large numbers of Japanese companies would be a major crisis for Thailand.

Worthy of note that 2 positive stories get almost no response from the forum.

I bet there would have been about 50 posts by now if the headline had been to the effect that they were pulling out.

Says a lot about those who populate thaivisa.

Not everyone fortunately but I agree with your comment. Personally I take pleasure in the silence of the Doom and Gloomers who take pleasure at any chance to make a negative comment about LoS whilst apparently choosing to live here in preference to their country of origin.

[DP25]

Companies aren't staying because they have confidence in the government's flood prevention measures. They stay because they don't think they'll be stupid enough to flood the country again due mismanaging dams to benefit their rice subsidy scheme.

[SantiSuk]

Companies aren't staying because they have confidence in the government's flood prevention measures. They stay because they don't think they'll be stupid enough to flood the country again due mismanaging dams to benefit their rice subsidy scheme.

Add to that the horrendous cost of relocating and the love of visiting Japanese bosses for some cheap Thai nookie. You may laugh and it was a bit of a tongue in cheek comment, but rich people like cheap sex too you know