Thai industries face collapse from competition with China, technology changes, and rising wages. Factory closures and layoffs are increasing, with concerns over the impact of minimum wage hikes on small businesses.
Thai Industries Facing Threat of Collapse
Amid rapid technological changes, competition from China, and a planned hike in the daily minimum wage, Thai industries are at risk of a massive collapse. Japanese carmakers Subaru and Suzuki are shutting down their manufacturing sites in Thailand due to shrinking demand for their vehicles.
Challenges and Concerns
With 1,700 factories shutting down since early last year, the situation for Thai industries is dire. The closure of large factories points to structural issues, while rising bad debt in financial institutions reflects the ongoing contraction in manufacturing. The government’s plan to hike the daily minimum wage could further exacerbate the situation, leading to closures of small businesses and potential layoffs.
