American firms looking at relocating production bases to Thailand amid US-China trade war

[webfact]

American firms looking at relocating production bases to Thailand amid US-China trade war

By Wichit Chaitrong

The Nation

 

 

US Secretary of Commerce Wilbur Ross meets Finance Minister Uttama Savanayana on Monday to promote the United States’ Indo-Pacific strategy.

 

US business leaders on a visit to Thailand are seeking opportunities, especially potential relocation of their production bases, as they manage risks stemming from the US-China trade war, director-general of the Finance Ministry’s Fiscal Policy Office Lavaron Sangsnit said on Tuesday (September 5).

 

US Secretary of Commerce Wilbur Ross and the delegation of executives representing 16 American companies met Finance Minister Uttama Savanayana to discuss trade and investment between the two countries on the sidelines of Asean Summit on Monday.

 

US firms are interested in investing in the Eastern Economic Corridor (EEC), the government’s flagship project.

 

Baxter International, one of world’s leading medical supplies manufacturers, has already invested in the EEC.

 

The company executives are also looking at energy, infrastructure and financial services areas, Lavaron said.

 

Ross and the US delegation are visiting Thailand, Indonesia and Vietnam as part of the Trump administration’s efforts to promote its Indo-Pacific strategy, which has been seen as counter move against China’s Belt and Road Initiative.

 

Ross also expressed US support for Thailand 4.0 and praised the kingdom for moving up to the 21st place in the Doing Business ranking and successfully hosting the Asean Summit and Related Summits between November 2 and 4 in Bangkok.

 

Source: https://www.nationthailand.com/business/30378080

 

-- © Copyright The Nation Thailand 2019-11-05

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[zydeco]

5 minutes ago, webfact said:

US firms are interested in investing in the Eastern Economic Corridor (EEC), the government’s flagship project.

Until the find out that they need to spend all day at their local immigration office filing TM30s every time they take a business trip outside the country.

[keith101]

This will be another boost to the value of the Thai baht making it even harder to live here .

[FritsSikkink]

40 minutes ago, zydeco said:

Until the find out that they need to spend all day at their local immigration office filing TM30s every time they take a business trip outside the country.

No they don't.

[Grumpy John]

Do these USA companies not see the benefits of relocating to Vietnam or Crapbodia......?  They will get treated well in those countries with a cheap labour force to boot.  Maybe I should write to them and explain the situation.

[Oziex1]

The fake news office isn't working too well, or maybe too well!

[Number 6]

I guess to take advantage of those human rights abuses the US is alleging.

 

[legend49]

Dreamers.

[soalbundy]

By the time they have sorted it all out there will be a trade deal  between the USA and China and there will be a rethink, especially with trump threatening the firms who would dare remove production to Thailand from the US.

[yellowboat]

15 hours ago, FritsSikkink said:

No they don't.

Wow, what a zinger.

 

Would look at the new and improved Malaysia and fast forward moving Vietnam.  Thai government  still feels entitled for some odd reason.   Thai workers and factories are great, but the cha cha government spoils it all. 

 

Getting things in and out of Malaysia was easier and they have a large number of people who speak English.  

[fforest1]

I guess these American Companies will learn the hard way that if Thai people dont like their job they just dont bother showing up for work...lol........Thais dont make good factory slaves...

[impulse]

Investing in Production bases?  More like warehouses where they can repackage their Chinese made stuff into boxes marked "Made in Thailand" to circumvent the punitive duties while they last. 

[neeray]

15 minutes ago, fforest1 said:

I guess these American Companies will learn the hard way that if Thai people dont like their job they just dont bother showing up for work...lol........Thais dont make good factory slaves...

"Thais dont make good factory slaves..."

 

That may be just a bit too broad of a brush that you are painting with.

I know first hand of quite a number of Thai workers who work extremely well and reliably for base level wages in Thailand.

[rabas]

17 hours ago, Grumpy John said:

Do these USA companies not see the benefits of relocating to Vietnam or Crapbodia......?  They will get treated well in those countries with a cheap labour force to boot.  Maybe I should write to them and explain the situation.

 

Thailand offers unique business opportunities to US citizens who are allowed to fully own 100% of a Thai company under what's known as the Thailand America Amity Treaty. I don't think that is possible in places like Vietnam.

[norfolkc]

They wont come here these boys have priced themselves out of the market 

[impulse]

54 minutes ago, rabas said:

Thailand offers unique business opportunities to US citizens who are allowed to fully own 100% of a Thai company under what's known as the Thailand America Amity Treaty. I don't think that is possible in places like Vietnam.

 

How many significant sized businesses are owned by citizens, as opposed to corporations?

[Isaan sailor]

Methinks Wilbur suffers from dyslexia...Baht at 30.24 on USD, not 42.03.

[tyga]

1 hour ago, neeray said:

"Thais dont make good factory slaves..."

 

That may be just a bit too broad of a brush that you are painting with.

I know first hand of quite a number of Thai workers who work extremely well and reliably for base level wages in Thailand.

It is about good management. We don't have any issue with Thai workforce being absent or late for work. Like everywhere you just need the right work ethic and team spirit. Thais are very adept at doing long hours in what many in the West would regard as boring jobs. I have heard this from my friends in the automotive sector where there work ethic is compared favourably with many countries in Europe.

 

[happy chappie]

What a great idea.move you production/company to Thailand then try to sell you goods at the thai baht rate.

there I see international car,tyre manufacturers that are laying off workers and closing down factories and they think its a good place to invest in?????

[yellowboat]

2 hours ago, rabas said:

 

Thailand offers unique business opportunities to US citizens who are allowed to fully own 100% of a Thai company under what's known as the Thailand America Amity Treaty. I don't think that is possible in places like Vietnam.

What are those "unique" opportunities?  What unique business opportunities are available to Treaty of Amity companies besides ownership ?   Why is there more opportunity in Thailand than other parts of Asia? 

[Srikcir]

21 hours ago, webfact said:

especially potential relocation of their production bases, as they manage risks stemming from the US-China trade war

Overlooked in Trump's tariff war with China allegedly to protect American manufacturers is that it actually hurts American manufacturers based in China!

It's no small cost and time to re-establish their Chinese manufacturing facilities and intra-China supply chains to another country not to mention disruption of business stability with the change in worker skills, labor and business laws, language, customs, etc. 

Yet what is apparent is that these American overseas manufacturers have no interest in relocating to the US - thus defeating Trump's "national security" premise of bringing American manufacturing back to the US.

[DrTuner]

6 hours ago, yellowboat said:

Would look at the new and improved Malaysia and fast forward moving Vietnam. 

Muslim and communist. Yes, it does matter even if they say it doesn't. Thailand is a de facto military [insert waldemort word here]. Singapore is too expensive. Laos, commie. Cambodia a backwater, Myanmar same as Thailand. Seems it's a matter of selecting the smallest evil. Things were easier in the good old colonial days.

[StayinThailand2much]

23 hours ago, Grumpy John said:

Do these USA companies not see the benefits of relocating to Vietnam or Crapbodia......?  They will get treated well in those countries with a cheap labour force to boot.  Maybe I should write to them and explain the situation.

I think they were just being polite, telling Thailand's officials 'you are great', while having their eyes on Vietnam...

 

Why would any company invest in a country with uneducated/-qualified and unmotivated/lazy staff, unstabile government, lack of infrastructure and language skills, record corruption, inane bureaucracy, and backwardness, if they can have the opposite just a thousand kilometers to the east?

[CNXexpat]

7 hours ago, StayinThailand2much said:

I think they were just being polite, telling Thailand's officials 'you are great', while having their eyes on Vietnam...

 

Why would any company invest in a country with uneducated/-qualified and unmotivated/lazy staff, unstabile government, lack of infrastructure and language skills, record corruption, inane bureaucracy, and backwardness, if they can have the opposite just a thousand kilometers to the east?

Don´t you think that the companies make a research before making a decision? 

[yellowboat]

 

16 hours ago, DrTuner said:

Muslim and communist. Yes, it does matter even if they say it doesn't. Thailand is a de facto military [insert waldemort word here]. Singapore is too expensive. Laos, commie. Cambodia a backwater, Myanmar same as Thailand. Seems it's a matter of selecting the smallest evil. Things were easier in the good old colonial days.

Worked in Malaysia for a few years.   It is a fine place especially now with corrupt government gone .   English is widely spoken, food is good and cost of living is affordable.    

[JAFO]

16 hours ago, StayinThailand2much said:

Why would any company invest in a country with uneducated/-qualified and unmotivated/lazy staff, unstabile government, lack of infrastructure and language skills, record corruption, inane bureaucracy, and backwardness, if they can have the opposite just a thousand kilometers to the east?

Because its not as bad as you say it is. Quite simple really. The companies I work and have worked for find qualified staff, they work hard, are paid well, treated well. Language is not a problem as most people speak in English. Most companies transfer operations here with little to no issues and in many cases it goes very fast. The only thing I would agree on is the unstable government but that has sense stabilized. Now I speak from a strictly business point of view for US companies that move operations offshore. 

 

But I can say that eventually Thailand will do like China did and price themselves out of the market.

 

 

[JAFO]

21 hours ago, tyga said:

It is about good management. We don't have any issue with Thai workforce being absent or late for work. Like everywhere you just need the right work ethic and team spirit. Thais are very adept at doing long hours in what many in the West would regard as boring jobs. I have heard this from my friends in the automotive sector where there work ethic is compared favourably with many countries in Europe.

You are absolutely right. It boils down to management, work environment. Most that join are excited to join a bigger company because they get to work in an AC environment, Usually get benefits, paid holidays and bonuses.