Thai business stories

Choosing cheap Chinese Products over Thai jobs

By needchange, Created on: 17/10/2010, Last updated on: 24/11/2015

» Everyone knows the story of what has been happening in the US in terms of the trade deficit with China. If you go to Walmart, almost every product sold there comes from China. Walmart is America's biggest retailer if I'm correct. The trend is the same at many other retailers around the country. So...

• drake commented : [quote="Voice":1vwk1lbc]Hello needchange! I do agree with you there about Thailand should encouraging our Thai companies to be more productive which could help our country in this economic crisis. [/quote:1vwk1lbc] Say, Voice. There isn't really an "economic crisis" in Thailand right now. SET has gone through the roof this year and the exchange rate is at the best it's been in over a decade. The state of general prosperity, that is something else completely different. [quote:1vwk1lbc]As Thailand still has cheap labour our good could be compatible with China or we could go for quality good items like electronic gadget as such.[/quote:1vwk1lbc] Industrial advances or economic prosperity and employment does not have a direct relationship these days as robots can do a large number of jobs better and cheaper than man. 'Cheap labor' alone just don't cut it anymore. Look at India and Mexico and ask yourself why aren't they ahead of China ? [quote:1vwk1lbc]The government should invest more in it people rather prodding in single area of agriculture. Even in the area we still cannot beat China for the best price for we can make.[/quote:1vwk1lbc] If all you have is a hammer, everything looks like a nail. The [i:1vwk1lbc]leadership[/i:1vwk1lbc] for this country, and I'm being overly generous with that word, are without a clue. They are stuck in a box, a very small box. They shuns new ideas and concepts. Most of them can't think of anything beyond their own gains. Sacrifice and service, that is just hollow propaganda for someone else. Yes, the country should invest in the people and their education but there are several other major obstacles. The fanciful social & environmental responsibility directive is one. I mean, who in the right mind would want to deal with the new worker's rights and environmental redtapes on top of the corruptions and the Manana attitude when they can go to China, or VietNam, or Podunk and won't have to deal with most of that ? Then, on the physical side, the country has anemic shipping infrastructure and inadequate supply of electrical energy. Without electricity there is no industry. Look like VietNam got that msg loud and clear and is seriously doing something about it by committing to a Nuke. Thai govt., well, they are still tooling about on that subject as if they've got all the time in the world. They might get around to decide to [i:1vwk1lbc]talk[/i:1vwk1lbc] about this sometime after hell froze over and all the foreign Green Nut NGOs or (foreign) special interest lobby had stop meddling, and all the officials agree on their piece of the pie. I mean, they've only been talking about digging a canal across the Kra Isthmus (คอคอดกระ) since the day of King Narai and nothing has been done so far beyond kicking the tires and a lot more talk. There's always t[i:1vwk1lbc]he next life[/i:1vwk1lbc] to get around to do it, right ?

• bew commented : I agree with K.Drake on the lack of visionary leaders in Thailand and K.Needchange on regulation. The problem isn't the regulation per se, but is the consistence of law enforement. The enforcement in environmental regulation at Map Ta Phut is stricted, while in the other area is very lax. The law enforcement is quite selective. Why China stays ahead of India & Mexico was a topic for discussion in my class yesterday. I've been to all these three countries. For Mexican case, higher cost of labour as a result of NAFTA and product quality as a result of poorly trained human resources and Mañana mentality are main factors. For Indian case, very poor quality in work and lack of time-conciousness probably owing to many religious festival in India. The high in English of Indian people doesn't guarantee product quality and punctuality. You can see difference in work quality between Indian & Chinese construction workers in Singapore. Investment in human resource is very important, but only leaders who have a strategic vision can see this. Let me predict the future of Thailand: 1.Low-skill Thai workers will lose their jobs forever. Only few of them go back to rice paddy field. 2.Thailand will have by both hi-tech & low-tech products from China forever. Owing to cost, Thailand can't compete with China for low-tech products. Owing to technological development, Thailand can't compete with China for hi-tech products. The advantage of China's economy of scale over Thailand's one will be a decisive factor. 3.Thailand will rely on tourism based on Art/Craft/Agricultural Cottage until this industry is insustainable. 4.Sex industry will prosper & last forever, as low-skilled female workers can't find any other jobs.

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