Thailand to lose market share in China to neighbours in next few years

[webfact]

Thailand to lose market share in China to neighbours in next few years

BANGKOK: -- Thailand is losing its Chinese market to its neighbours over the next five years because of their labour competency and manufacturing quality, the University of the Thai Chamber of Commerce warns.

Aat Pisanwanich, director of the Centre for International Trade Studies at the University of the Thai Chamber of Commerce said the flow of foreign investors both from Asean and beyond Asean, such as South Korea and Japan, will help to reinforce the labour capability and manufacturing quality of those countries.

As a consequence, this will definitely affect existing Asean players, particularly Thailand, he said.

Thailand will stands to lose an estimated US$ 3.62 billion worth of trade in the Chinese market to these neighbours, he said.

Thailand is now second only to Malaysia in the Chinese market, with a 1.95% share from a 10% market share of trade of Asean in China valued at US$ 250 billion a year

Asean’s market share in China is expected to grow in 2019 to 11%, with China’s trade amounting to US$ 2 trillion.

Thailand’s market share during the period is forecast to grow to 1.97%.

However Thailand’s ranking is expected to slip to fourth place, as Indonesia and Vietnam are to overtake Thailand in 2019.

Mr Aat then urged Thai exporters and authorities to conduct more in-depth studies of China’s market and its consumers’ demands, tastes and consumption behaviour in each province, set up distribution centres in key cities and maintain the standard of Thai products.

According to the latest study on Thailand’s product competitiveness against Asean in the China market between 2015 and 2019, Thai products that are expected to become less competitive include rice, fishery products, textiles and apparel, shoes, gems and jewellery, electrical appliances and electronics.

Products with promising prospects are rubber and rubber products, tapioca, fruits and processed food.

Source: http://englishnews.thaipbs.or.th/thailand-lose-market-share-china-neighbours-next-years


-- Thai PBS 2014-11-26

[Cuchulainn]

Thailand has had its head in the sand (or up its arrse) for the last century. What do you expect?

[hughben]

And their laws to protect the elite from foreigners owning businesses that will raise standards etc., don't help.

[iReason]

Som nam naa.

[jaltsc]

"Thailand is losing its Chinese market to its neighbours over the next five years because of their labour competency and manufacturing quality..."

No one saw this one coming...Inside of Thailand. Everyone saw this one coming...Outside of Thailand.

The logical result for an under-trained, under-educated and ethnocentric population.

Edited November 26, 2014 by jaltsc

[Tatsujin]

Anyone taking bets that Thailand won't actually go fully "into" ASEAN at the end of the day and make up excuses as to why they can't "comply" ...?

They just are not in any way, shape or form ready for it.

[Anthony5]

Anyone taking bets that Thailand won't actually go fully "into" ASEAN at the end of the day and make up excuses as to why they can't "comply" ...?

They just are not in any way, shape or form ready for it.

Don't be so negative, everyone in Thailand knows that all the other Asean members will look to the hub that Thailand is to improve themselves.

[kurnell]

Thailand no 1!

[zaphod reborn]

And nothing to do with the rising cost of labor in Thailand, the unreasonable amounts of red tape and corruption to deal with on the government level, the artificially inflated baht currency, the increasing uncertainty caused by abrupt about-faces in government policies and unauthorized anti-business utterances of public officials.

Put the blame on the rising stock of neighboring countries and not your own government's abysmal failures.

[chainarong]

Don't fall for the trap and place all your eggs in one basket , look for trade not only with China, look outside the square or you could be in big trouble like OZ with there mineral exports going down quicker than a Thai Helicopter.

[Cuchulainn]

Thailand no 1!

I go witt you. Stay long time. Love you too mutt. ​

[Thai at Heart]

Dont worry. Elsewhere, some numpty elsewhere was arguing with me that Thailand doesn't need FDI.

Obviously everyone else in the region loves FDI, but Thailand so far developed it doesn't need it.

[Fred Flinstone]

Well i hope Thailand manages to head that off-

Truly its sad to see a country loose so much so quickly

[Thailand]

This never happened under the last military government.

[gemini81]

Who would have ever thought that'd happen to SE Asia's favorite banana republic.

[Cuchulainn]

What have bananas ever done to you!!??

[Baerboxer]

This never happened under the last military government.

Wouldn't have 'happened" under the last Shin regime. Madam Traveler would have paid a visit and signed billions of MOU's and G2G deals, all very confidential and to secret to tell the details. Mr. "White lies" would, well, er, lie about them. All good news, never bad under the Shins.

[Suffinator]

Anyone taking bets that Thailand won't actually go fully "into" ASEAN at the end of the day and make up excuses as to why they can't "comply" ...?

They just are not in any way, shape or form ready for it.

I have my doubts. The excuse will be the same as the last few times ... "Thais unprepared to compete against their neighbours due to lack of education." This will be swiftly followed up with the Education Ministry announcing reforms and attracting vast numbers of foreign volunteers to teach English.

Friend of mine used to work in a school teaching ... it's a thankless task as any course work is then scrutinized by the Thai teachers and anything they don't like (or rather don't understand) is taken out leaving the teachers with almost nothing to teach.

As long as Thailand remains glued to nationalism and protectionism it will continue to lose market share to its neighbours. Of course if the Junta decided to change the FBA then the slide they are talking about will be far more rapid.

[Suffinator]

What have bananas ever done to you!!??

Probably because they are bent like most Thai politicians.

[zydeco]

All the sucking up to China, willing to be their toxic waste dump, buying their tofu trains, and bringing in their high quality tourists and pffft. They still lose.

[Emster23]

It would make me weep, if I were the weeping kind, how thick headed and short sighted the ruling class of this country is. I'd toss them off a pier given the opportunity. It's the vast majority who are decent, hard working people who of course will suffer from the non-education they get at schools, the corruption top to bottom, the bleeding by the rich.

[Lupatria]

Looks like the guy is bored and eyes an inactive post making heretical statements like these

[Time Traveller]

that's a pity

[Chris Lawrence]

Maybe they could provide better education for the masses? But if that is done, the masses may start to understand who is actually bending them over?

[marcusd]

"Mr Aat then urged Thai exporters and authorities to conduct more in-depth studies of China’s market and its consumers’ demands, tastes and consumption behaviour in each province, set up distribution centres in key cities and maintain the standard of Thai products.

According to the latest study on Thailand’s product competitiveness against Asean in the China market between 2015 and 2019, Thai products that are expected to become less competitive include rice, fishery products, textiles and apparel, shoes, gems and jewellery, electrical appliances and electronics.?

Very easy - PRICE. Its that simple. Thailand is NO LONGER cheap nor competitive

[Muhendis]

It would make me weep, if I were the weeping kind, how thick headed and short sighted the ruling class of this country is. I'd toss them off a pier given the opportunity. It's the vast majority who are decent, hard working people who of course will suffer from the non-education they get at schools, the corruption top to bottom, the bleeding by the rich.

There are several major reasons why companies are struggling to compete. It is my opinion that the bleeding by the rich is the most damaging. Let us take a look at a fictional company that was set up twenty years ago producing a good product with a reasonable demand. The owner employs lots of cheap poorly educated labour, and pockets as much as he/she can, putting only a minimal amount back into the company. Another company in say Cambodia, also makes a similar product but reinvests some of the profit in acquiring new machinery and better staff from time to time. The Cambodian company product will become easier and cheaper to produce and more profitable allowing the company to expand. The first company will quite likely eventually fold because of its lack of competitiveness against the second company. This scenario is not uncommon in the western world also.

[retsdon]

Not exactly surprising news. I remember about 10 years ago a friend teaching at the Rajaphat ttelling me about some visiting Chinese exchange students compared to the locals. The Chinese would snap up everything he gave them and more. Learn 10 new words a day? No problem - off their own bat they'd learn 15. Ask them to write a 200 word essay? They'd write 250 words and hand in a rewritten correction the next day. With the locals? Getting them to do anything, and certainly anything properly, was like pulling teeth.

ASEAN is going to be very scary for Thailand.

[maidee]

what does thailand procude that cannot be done in other neighboring countries ???

innovation ? education ?

investment at 49% of your own money ?

[bangon04]

"However Thailands ranking is expected to slip to fourth place, as Indonesia and Vietnam are to overtake Thailand in 2019."

and they had better hope that Myanmar doesn't get its act together ....

[farangmick]

One time I too would say som nam naa and sit back to watch the GBP THB exchange rate work in my favour. Now with two young sons I cannot afford to send to international schools, let alone foreign universities, I am rather less self centred. I really hope Thailand gets its act together, but not very optimistic.