Not making it: Thailand's economy

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hhfarang
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Not making it: Thailand's economy

Post by hhfarang » Mon Jul 31, 2017 5:48 pm

"South-East Asia’s second-largest economy surprised analysts today, reporting a slip in industrial activity. Once a pillar of growth, Thailand’s export-oriented industrial economy has been sliding sideways for years. Creeping de-industrialisation began in 2010, when manufacturing’s share of GDP was 31%. By 2016 it was down to 27%. The ruling generals are planning a manufacturing revival (“Thailand 4.0”), but it is claptrap. For Thai businesses it is easier to make money in property or food, where competition is low, innovation less important and returns high. To deal with rising automation, the country has to stay cheap or build a highly skilled workforce. Both have proved impossible. A strong baht, military rule and fading foreign interest have not helped; in 2016 FDI inflows slumped to $1.6bn, compared with Vietnam’s $12.6bn. In future, the role of services, including tourism, will only rise: last year Bangkok was the most-visited city on Earth.

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oakdale160
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Re: Not making it: Thailand’s economy

Post by oakdale160 » Mon Jul 31, 2017 7:40 pm

You say building a highly trained workforce has proved impossible. I assumed that the auto industry had done that.

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Re: Not making it: Thailand’s economy

Post by RCer » Mon Jul 31, 2017 8:57 pm

If the auto industry (major manufacturers) here is like the rest of the world, its highly automated. Humans only set up the machines and feed them materials or parts. Not a lot of skill required to do that.

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Re: Not making it: Thailand’s economy

Post by caller » Mon Jul 31, 2017 9:38 pm

I don't believe the tourism figures either. Everything here is smoke and mirrors.
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Re: Not making it: Thailand’s economy

Post by Spitfire » Mon Jul 31, 2017 9:46 pm

The Thai exporters are screaming hell about the Thai Baht value which is to be expected...but there are more important and larger forces here dictating the economic situation, as much is at play, and for now a more valuable baht is good for these dark forces to invest oversees...plus the BoT is helping out the 5% of the population.

As for the tourist figures...they are having a giraffe.
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Re: Not making it: Thailand’s economy

Post by caller » Tue Aug 01, 2017 11:43 am

The export figures make little sense. Every time the exporters bleat about the strength of the baht affecting exports, the Govt. Issue record export figures! A few months ago their association was reported as saying there was no way they would meet the targets being set by Govt. for 2017 but according to the figures they are doing great. There is no logic to it.
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