Thailand to raise the minimum wage result in the garment industry to move overseas

Thai government decided that, in two years, the Thai minimum wage to 250 baht / day, the policy will directly hit populist labor-intensive industries, especially the garment industry, forcing manufacturers to move out of Thailand, in order to maintain market competitiveness.

    Thai exporters that Vietnam, Indonesia, Bangladesh and China have business opportunities. Some Thai companies have moved their factories in Vietnam a few years ago.
    Thai industry source said, within two years the minimum wage from 215 baht ($ 7) to 250 baht is unreasonable, will weaken Thailand's competitiveness. The burden of pressure on manufacturers to fully shoulder, make them more difficult to quote a competitive
portable mobile phone charger
Price competitiveness.

    So they have to move out of Thailand to produce the one hand, the use of cheap foreign labor, on the other hand, the use of foreign tax credits available, free trade agreements.

    President of Thai Garment Manufacturers Association, said Sukij Kongpiyacharn, Thailand's largest clothing manufacturer six Nice clothes (Nice Apparel), high-tech group (Hi-Tech Group), Winton Textile (Thong Thai

Textile), Nanyang Textile (Nan Yang Textile), the Statue of Liberty costume (Liberty Garment) and the Hong Seng Knitting (Hong Seng Knitting) is investigating three potential sites countries in preparation for the three

National construction.
    The clothing manufacturer mainly produces sports apparel. They plan to plant an average investment for each new 800-1,000 million.

    Last year, sales of these big companies add 700 million U.S. dollars, while Thailand exports amounted to 3.2 billion.

    Statue of Liberty Group, Ho Chi Minh City in Vietnam a few years ago built a factory, employing 2,000 workers. Nanyang built a textile factory in China.

    The six projected the company's future overseas investment by at least 25,000 job opportunities for Thai workers.

   & NbspSukij that rely mainly on labor-intensive production of the apparel industry, manufacturers have to pay the wages higher than minimum wage. For example, the general average daily wages of skilled workers is 300 baht (10 dollars) -400 baht ($ 13

), Including 2 hours overtime.

    He said that this is the first wave of wave of Thai manufacturers to invest overseas, but more companies are considering following their practice.