Thailand Withers As Myanmar Rises: Opinion

[BuddyPinkham]

Myanmar has a lot of opportunities. India building the 4 land highway across it. Oil and gas possibilities off the coast. Pristine untouched coastline and islands. A largish population with a huge workforce (low skilled) at the ready. Politicians wanting foreign investment and willing to build necessary diplomatic ties.

In Japan Yingluck was pitching the Burmese deep water port facility so was that for the benefit of Thailand or family interests ?

I would take a wild bet on the latter

[chiangmaikelly]

I am sure you are better informed than I but didn't Ford just open a big plant in Thailand and close one in Australia? So I guess the answer to your question, "What would I do if I were Ford? Open plants in Thailand and close them in Australia.

They open plants here to export, the domestic market is just icing on the cake that the government taxes to death in return for allowing the car makers to transfer price their margins out of the country.

One could in essence look at it, as buying a car made in Thailand in Thailand add a subsidy to the manufacturers.

So are you saying it is bad for Thailand when Ford opens a plant and employs thousands in primary and secondary products and services in Thailand?

Not at all. It was more in answer to the statement about taxation of cars in Thailand. Many of these companies are BOI, so pay virtually no income taxes, so as a sop to the manufacturers as a show of commitment to the manufacturers the government taxes the crap out of the imports to give them a protected status, and makes the consumer pay rather high excise taxes on domestically produced vehicles.

Its all great that they open factories and bring jobs here, it is just that the government uses their excise system to collect pretty high taxes on cars made domestically, in lieu of making BOI a little less generous. Thus, car buyers (consumers) are essentially subsidising the BOI status of the car manufacturers in Thailand. It is very much a chicken and egg situation, with the consumer ending up covered with the egg.

Just so I understand when thousands of Thai people get jobs and money at Ford and the hundreds of other factories that supply Ford and they buy cars because they have a good paying job that is, "covered with egg?"

Edited May 28, 2013 by chiangmaikelly

[Thai at Heart]

@ ChiangmaiKelly

It is all car consumers, not just Ford employees. The car manufacturers are encouraged to invest here with the promise of a captive market and generous tax concessions, and then the government puts a whopping great tax on the domestic cars and even greater one on imported cars exploiting the consumer and limiting his choice, to the benefit of the companies invested here.

This is an economic arguement for changing the rules and regs about car taxation in Thailand for the benefit of consumers, who after all are fairly numerous, and end up paying often a far greater price for cars produced in Thailand, than consumers do in the rest of the world. The government is essentially paying for the benefits it gives under BOI, by taxing the consumption of cars as opposed to taxing the companies producing here.

The consumer is essentially paying for the privelege of having access to a car manufactured in his own country. Odd contradiction.

[chiangmaikelly]

@ ChiangmaiKelly

It is all car consumers, not just Ford employees. The car manufacturers are encouraged to invest here with the promise of a captive market and generous tax concessions, and then the government puts a whopping great tax on the domestic cars and even greater one on imported cars exploiting the consumer and limiting his choice, to the benefit of the companies invested here.

This is an economic arguement for changing the rules and regs about car taxation in Thailand for the benefit of consumers, who after all are fairly numerous, and end up paying often a far greater price for cars produced in Thailand, than consumers do in the rest of the world. The government is essentially paying for the benefits it gives under BOI, by taxing the consumption of cars as opposed to taxing the companies producing here.

The consumer is essentially paying for the privelege of having access to a car manufactured in his own country. Odd contradiction.

I don't know for sure but doesn't it cost more to own and drive a car in Burma than Thailand? The price of a 2002 Toyota Mark II, for instance, ($36,000) 1,080,000 baht? http://www.irrawaddy.org/archives/5082

Edited May 28, 2013 by chiangmaikelly

[Thai at Heart]

@ ChiangmaiKelly

It is all car consumers, not just Ford employees. The car manufacturers are encouraged to invest here with the promise of a captive market and generous tax concessions, and then the government puts a whopping great tax on the domestic cars and even greater one on imported cars exploiting the consumer and limiting his choice, to the benefit of the companies invested here.

This is an economic arguement for changing the rules and regs about car taxation in Thailand for the benefit of consumers, who after all are fairly numerous, and end up paying often a far greater price for cars produced in Thailand, than consumers do in the rest of the world. The government is essentially paying for the benefits it gives under BOI, by taxing the consumption of cars as opposed to taxing the companies producing here.

The consumer is essentially paying for the privelege of having access to a car manufactured in his own country. Odd contradiction.

So do any Thai people lose in your interpretation of the boi rules?

>@ ChiangmaiKelly

It is all car consumers, not just Ford employees. The car manufacturers are encouraged to invest here with the promise of a captive market and generous tax concessions, and then the government puts a whopping great tax on the domestic cars and even greater one on imported cars exploiting the consumer and limiting his choice, to the benefit of the companies invested here.

This is an economic arguement for changing the rules and regs about car taxation in Thailand for the benefit of consumers, who after all are fairly numerous, and end up paying often a far greater price for cars produced in Thailand, than consumers do in the rest of the world. The government is essentially paying for the benefits it gives under BOI, by taxing the consumption of cars as opposed to taxing the companies producing here.

The consumer is essentially paying for the privelege of having access to a car manufactured in his own country. Odd contradiction.

I don't know for sure but doesn't it cost more to own and drive a car in Burma than Thailand? The price of a 2002 Toyota Mark II, for instance, ($36,000) 1,080,000 baht? http://www.irrawaddy.org/archives/5082

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Business Monitor International added that most of the sales growth potential in Myanmar should be fuelled by companies assembling locally as there is still a 165% tax on import models. Suzuki is investigating the possibility of replicating its success in India and Sri Lanka in Myanmar and could start assembling cars there in 2015, as well as Hyundai in the longer-term.

http://bestsellingcarsblog.com/category/myanmar/

[kimamey]

Getting so tired of all the haters here! You are here by choice and of your free will, you are the holder of a passport, so why not just move quietly to the new paradise ? Your new friend Thein Sein will welcome you with open arms. Ironic, that he has become the flavour of the month, after together with his co-generals having raped his country for half a century.

We are all looking forward to reports of your life in paradise. Oh, I forgot, there is almost no internetcoverage and a simcard is 6000 baht!

This isn't Thailand. It's an internet forum and your views are as welcome as anybody's. However if you really don't like the criticism you aren't obliged to come here.

I notice you don't have anything positive to say about Thailand either.

Edited May 28, 2013 by kimamey

[chiangmaikelly]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Thailand’s 2012 Automotive Sales up 80.9% reached 1,436,335 units

http://komarjohari.wordpress.com/2013/01/21/thailands-2012-automotive-sales-up-80-9-reached-1436335-units/

Edited May 28, 2013 by chiangmaikelly

[Thai at Heart]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans. When it hits 14 per 1000, that will represent a 100% increase. That statistic was true of Thailand not all that long ago. The manufacturers will in time open up their manufacturing and assembly plants over there to get around the import duties. Of course, it would be nice if ALL the countries would harmonise their import duties as they have been supposed to do under Asean, but alas, that hasn't quite been achieved yet. Got to take care of Toyota in Thailand and Proton in Malaysia.

Of course Thailand would love to be able to export directly over there, but then where would the economic benefit for the Burmese people be in that. Burma, will do a Thailand and hide behind import duties to encourage companies to open there. Then just hink if Dawei opened up, all that quicker shipping from Burma instead of Thailand with transhipment in Singapore. Oooooh. Wouldn't that make it a hell of a lot cheaper than producing and shipping from Thailand for export?? Of course, in Burma, they drive on the other side, so that opens up a hell of a lot more markets and simpler factory tooling also.

Protectionism abounds.

[Trembly]

Quote:

At this juncture, Thailand has to wake up to the harsh reality that the US, despite diplomatic pleasantries, is no longer playing the waiting game it used to. With the rise of China and diplomatic commitments that come with it, Washington does not favour Bangkok's approach. The impression among US policy-makers and academics is persistently strong that Thailand is a pro-China country. So, it is difficult to have a genuine alliance with Thailand under the new security environment. Other remaining US allies in the region — Australia, Japan, South Korea and the Philippines—do not have such a problem. The Foreign Ministry often reiterates that it has never chosen any side, particularly between the US and China - but in the real diplomatic world, day-to-day actions speak louder than words. Thailand has leaned toward China for all good and practical reasons.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Thailand has never been colonized due to this policy and always will butter its bread on both sides and try to benefit maximum from both sides.

Good for them !!

It will avoid making a choice at any cost.

There is nothing wrong with that, and who are the USA and China, to force people to chose anything ?

Thailand is being scrutinized for not choosing a side but as soon as Thailand chooses a side, it will be used as a pawn in the political battle between USA/China.

Why would they want to choose a side.

Can Thailand not just be neutral in this political battle.

As for Thailand being a more pro-china country, helloooh, it is ruled by Chinese.

The business barons of Thailand may be ethnically Chinese but the vast majority of Thailand's career soldiers and politician tend to come from local stock of humbler backgrounds.

Over-representation of (rather diluted) ethnic Chinese in Thai realpolitik doesn't necessarily equate to a natural predisposition towards The Middle Kingdom; Thailand is no more ruled by the Chinese than the USA is ruled by the Anglo-Celts of the British Isles.

This may not be a good analogy, but building on your similie. The Jewish lobby carries significant weight in the USA, particularly on foreign policy. Maybe the Thai ethnic Chinese lobby would be similar. Both lobbies are based on controlling large portions of the ecomonmy and wealth. Just a thought.

Not same same I'm afraid. Afrikaaners / Netherlanders or German-Americans of yesteryear might make better parallels.

I grew up in Bangkok neighbourhoods with more than their fair share of Chinese-Thais of varying household wealth and I went to school with some of the very wealthiest Chinese-Thais in the country.

Many do make a point of encouraging their young to learn Chinese but are often just as happy or only very slightly less happy if their young can become fluent in English. Some families have been more effective / interested in transmitting their Chinese identity than others, and quite a lot of those families have been in Thailand for so long that even members in their 50s and 60s can only barely speak a time-warped version of their forebears' local dialect (almost never Mandarin Chinese), despite marrying only fellow Chinese-Thai.

Whilst they no doubt celebrate their culture, some very keenly, the vast majority have no automatic desire to align themselves politically with mainland China. They consider themselves fully invested in Thailand whilst happily drawing on any cultural capital that may strengthen their position as Chinese-Thais in Thailand. In other words, when it comes down to the rice bowl they're as Thai as anyone else born here.

The Chinese are nothing if not pragmatic; just look at Taiwan.

Edited May 28, 2013 by Trembly

[chiangmaikelly]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

[waza]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

How many cars does Thailand export?

[gemini81]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

You sure about that? If I had my factory flooded out and it crippled my manufacturing, hard to claim tax back on it etc. etc., I would start seeking other places, especially where the laws are easier. Give it time. Burma is already starting up plan with relaxed laws to build industrial estates, and it might be quite attractive given the rather large number of drawback here..not to mention logistics aren't bad either, having connecting highways etc.

[Thai at Heart]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

Not necessarily cars. Car ownership has little to do with production of cars. There are many industries that put plans on hold in mapthaput. What do you think dawei is for? The fun of it?

Could be any number of industries wanting to put themselves there?

Edited May 28, 2013 by Thai at Heart

[chiangmaikelly]

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

How many cars does Thailand export?

Why do you ask?

[chiangmaikelly]

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

You sure about that? If I had my factory flooded out and it crippled my manufacturing, hard to claim tax back on it etc. etc., I would start seeking other places, especially where the laws are easier. Give it time. Burma is already starting up plan with relaxed laws to build industrial estates, and it might be quite attractive given the rather large number of drawback here..not to mention logistics aren't bad either, having connecting highways etc.

Yes I am sure. Rayong did not flood and that is where most of the vehicles are produced along with the oil refineries and the rest of the manufacturing that is done along the East coast of Thailand. You should probably ask Ford where it opened and closed plants in the last couple of years.

[chiangmaikelly]

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

Car ownership has little to do with production of cars.?

You may want to check the history of autos and Ford in particular.

[kimamey]

Thai consumers lose due to restricted competition. I guess the taxes on cars will plummet over there once Burma starts to open up a bit more.

Ironically, there is 165% tax and duty on imported cars in Burma, actually lower than Thailand.

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

It will certainly not happen overnight but don't discount the idea. I think many in the west had the same idea about Japanese cars.

[chiangmaikelly]

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

It will certainly not happen overnight but don't discount the idea. I think many in the west had the same idea about Japanese cars.

Japan had the industrial might to take on the world in a war. Burma....... The only reason this topic has any legs is the anti Thai sentiment here and nothing about Burma's industrial capability. Maybe we should start a list of the Burmese inventions, or new Burmese products or you know.......

Edited May 28, 2013 by chiangmaikelly

[geriatrickid]

Oil, gas and other resources. This is the only reason for the interest in Burma/Myanmar. China has been sucking out the resources for a decade and other counties want a shot at raping Burma's natural resources as well. India has been trying but keeps losing out to the Chinese. No one really cares about the people of Myanmar. It's a country characterized by poor infrastructure, no freedom, civil unrest, and some nasty diseases. I dare some of the people hear singing the praises to go and experience the dripping dirty water that comes out of a faucet or a day when the power grid is on the fritz. Yes, lovely beaches if you don't min swimming with effluent. Myanmar dumps raw sewage . yum.

[LomSak27]

This is nothing more than a typical Nation Op ED whinge piece. The
Bush administration was never keen on Thaksin and in a rare spirit of bipartisanship,
neither is Obama keen on Ying's crew.

As the Nation shills for the Dems and Abhisit at every occasion
they naturally leave out the fact that Obama and Bush thought even less of them than Thaksin.

Although frankly I really did like the recent NASA dust up resulting
in the cancellation of an already agreed upon study, followed almost immediately
by the same people wanting Mr Obama
to intercede with Cambodia over the two thais who were jailed regarding the PV
Temple. Its the audacity coupled with ball faced shamelessness that I can’t help
but admire.

Edited May 28, 2013 by LomSak27

[Thai at Heart]

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

Car ownership has little to do with production of cars.?

You may want to check the history of autos and Ford in particular.

I do wish you wouldn't selectively edit my posts to change the meaning.

[chiangmaikelly]

Anything can happen in the future. The reality of the situation is on May 7, Commerce Minister Win Myint said at a press conference in Naypyidaw that, due to high prices, only seven people in 1,000 have cars in Burma.

http://www.irrawaddy.org/archives/5082

Yup, and? what has that got to do with the price of beans.

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

Car ownership has little to do with production of cars.?

You may want to check the history of autos and Ford in particular.

I do wish you wouldn't selectively edit my posts to change the meaning.

I have no idea what you mean as the above post is really confused. Let me know where I quoted something you did not mean though. It would be nice if we could highlight parts of posts but I don't think we can do that. I think the approved manner is to only quote the part of the post that one is replying to. But I am always willing to learn another way.

[Thai at Heart]

To Kelly: what does the current level of car ownership in Myanmar have to do with willingness for companies automotive or other to invest in Burma?

What does Thailand position as the 10th largest car manufacturer have to do with Myanmar's attractiveness as an investment destination? Particularly as I pointed out in my post, import duties make them prohibitively expensive to Burmese people. Logically, thus is you want to sell cars to Burmese people some companies will logically choose to open plants there, especially if there is a chance to ship from Burma's coastline.

To the Chinese alone this would be extremely attractive to export to the west.

[Thai at Heart]

http://www.irrawaddy.org/archives/35549

Seems the japs aren't too keen on daiwei.....

[hellodolly]

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

You sure about that? If I had my factory flooded out and it crippled my manufacturing, hard to claim tax back on it etc. etc., I would start seeking other places, especially where the laws are easier. Give it time. Burma is already starting up plan with relaxed laws to build industrial estates, and it might be quite attractive given the rather large number of drawback here..not to mention logistics aren't bad either, having connecting highways etc.

How easy it is for some people to say Mynmar can nit di some thing based in what they havwe done in tghe past.

They forget the past was not interested in improving the economy or forign countries coming in. Just watch as things improve there they will be more and more willing to open the country up.

It will take them a long time but they will surpass Thailand. Thailand must not take them for granted.

[Thai at Heart]

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

You sure about that? If I had my factory flooded out and it crippled my manufacturing, hard to claim tax back on it etc. etc., I would start seeking other places, especially where the laws are easier. Give it time. Burma is already starting up plan with relaxed laws to build industrial estates, and it might be quite attractive given the rather large number of drawback here..not to mention logistics aren't bad either, having connecting highways etc.

How easy it is for some people to say Mynmar can nit di some thing based in what they havwe done in tghe past.

They forget the past was not interested in improving the economy or forign countries coming in. Just watch as things improve there they will be more and more willing to open the country up.

It will take them a long time but they will surpass Thailand. Thailand must not take them for granted.

It doesn't matter whether they surpass Thailand, it is more relevant how much FDI they or any other neighbour can take away from Thailand for whatever reason. Thailand had primacy in car manufacturing, and quite a dominance in petro chemical.

Petro chemical could be a big issue, logistics if the ports get built, then lower end intensive industries such add garment production first. Agriculture, Burma will return to be a massive rice producer.

Then issues with labour given time. There will be an exodus of Burmese labour back. Who will peel the shrimps and do the ironing?

Edited May 28, 2013 by Thai at Heart

[hellodolly]

Thailand is the largest auto manufacturer in South East Asia and the 10th largest in the world. Burma is not going to catch up. Thailand has too much of a lead.

You sure about that? If I had my factory flooded out and it crippled my manufacturing, hard to claim tax back on it etc. etc., I would start seeking other places, especially where the laws are easier. Give it time. Burma is already starting up plan with relaxed laws to build industrial estates, and it might be quite attractive given the rather large number of drawback here..not to mention logistics aren't bad either, having connecting highways etc.

How easy it is for some people to say Mynmar can nit di some thing based in what they havwe done in tghe past.

They forget the past was not interested in improving the economy or forign countries coming in. Just watch as things improve there they will be more and more willing to open the country up.

It will take them a long time but they will surpass Thailand. Thailand must not take them for granted.

It doesn't matter whether they surpass Thailand, it is more relevant how much FDI they or any other neighbour can take away from Thailand for whatever reason. Thailand had primacy in car manufacturing, and quite a dominance in petro chemical.

Petro chemical could be a big issue, logistics if the ports get built, then lower end intensive industries such add garment production first. Agriculture, Burma will return to be a massive rice producer.

Then issues with labour given time. There will be an exodus of Burmese labour back. Who will peel the shrimps and do the ironing?

I agree. But as Myanmar improves it's attitude towards foreign business the money will start to come in. I am looking at this as at least a ten year project. Maybe a lot less if we get another flood.

I agree with you about the exodus back to Myanmar. I am by no means a Thai basher but the Burmese are far better workers and that will definatly have an effect on the construction industry in Thailand.

[EyesWideOpen]

In some ways Burma is almost like post war Japan. Meaning due to its current underdevelopment, it is like Japan where everything was destroyed. Thus the advantage of starting out with a clean slate, and the ability to leapfrog past older countries with a tired and decaying manufacturing base. Plus the Burmese workers are a tremendous resource. So I guess when all the Burmese workers go back home, building condos in Pattaya will grind to a halt... :-)

Edited May 28, 2013 by EyesWideOpen

[SeaVisionBurma]

Nonsense post removed.

Please get back onto the original topic. The OP doesn't mention car manufacturing. Surely you can find something else to relate to the OP besides cars.

[willyumiii]

To Kelly: what does the current level of car ownership in Myanmar have to do with willingness for companies automotive or other to invest in Burma?

What does Thailand position as the 10th largest car manufacturer have to do with Myanmar's attractiveness as an investment destination? Particularly as I pointed out in my post, import duties make them prohibitively expensive to Burmese people. Logically, thus is you want to sell cars to Burmese people some companies will logically choose to open plants there, especially if there is a chance to ship from Burma's coastline.

To the Chinese alone this would be extremely attractive to export to the west.

1. Henry Ford figured it out first. Pay your workers enough to buy a car. He was the first one to do this. Thailand is also doing this. 2. Making a car is much more than a Ford auto plant in Thailand. It is the hundreds of smaller plants that supply Ford the materials to assemble a vehicle. Ford does not import screws and bolts from Michigan to Thailand; it buys them in Thailand made by Thai workers in small Thai factories. 3. Ford's history in Thailand dates back to 1913. The tanks in the Franco/Thai war were even powered by Ford motors; and Ford began construction in Thailand in 1961.

It takes much more than one auto plant to build a car and Burma is many years away from the ability to start an auto industry because the Burmese are many years away from being a large market for new cars like Thailand or China is.

To repeat and answer your question; Thailand's position in the world auto manufacturing market is partly because there is a large domestic market for vehicles.

After Thailand won the Vietnam war it launched it on a path to industrialization that it will take Burma 40 years to catch up to if they are very lucky and can find a country or war to fund their effort.

"Thailand won the Vietnam war"?????

What planet do you live on and what history books do you read?

Please answer. I am curious about your post!