The government of Thailand has decided to raise the minimum wage in Thailand to 250 baht / day within two years. This populist policy will directly hit the labor-intensive industries, especially the clothing industry, forcing manufacturers to move out of Thailand to maintain market competitiveness.

Thailand

Thailand insiders say it is unreasonable to raise the minimum wage from 215 baht (7 US dollars) to 250 baht in two years, which will weaken Thailand's competitiveness.

The burden is entirely on the shoulders of manufacturers, making it more difficult for them to report competitive prices.

Therefore, they had to move their production out of Thailand, on the one hand, using cheap labor abroad, and on the other hand, using foreign tax incentives to get free trade agreements.

Sukij Kongpiyacharn, chairman of the Thailand Garment Manufacturers Association, said that Thailand's six largest costumes.

These garment manufacturers mainly produce sportswear.

They plan to invest an average of 800-1000 US dollars for each new plant.

Last year, these big companies added up to $700 million, and Thailand.

The statue of liberty set up a factory in Hu Zhiming, Vietnam, a few years ago, employing 2000 workers.

Nanyang textile has built a factory in China.

The overseas investment of these six companies is expected to reduce at least 25000 jobs for Thailand workers.

Sukij pointed out that the garment industry mainly relies on labor-intensive production, and the wages paid by manufacturers are higher than the minimum wage.

For example, the average daily wage of the general skilled workers is 300 baht (US $10) -400 baht (US $13), including 2 hours overtime.

He said this is the first wave of Thailand manufacturers investing overseas, but more companies are considering imitated their practices.