The Thai government has implemented a nationwide trial of a minimum daily 300 baht policy on January 1, 2013, which has increased the cost of textile and clothing manufacturing. At the same time, the lack of labor and the appreciation of the Thai baht have made the manufacturing industry even worse. At the same time, Thailand’s textile and clothing industry in Europe and the United States has In traditional export markets, due to the impact of the economic crisis, the output and export volume of Thai textile companies have declined.
In 2013, the output and export volume of Thai textile enterprises declined. The analysis reason is mainly reflected in the increase in production costs of the textile industry. This phenomenon is the negative impact of Thailand’s minimum daily wage policy of 300 baht.
The Thai government will implement a minimum daily wage policy of 300 baht nationwide. This policy was proposed by the Pheu Thai Party during the 2011 Thai general election. On April 1, 2012, the Yingluck Shinawatra government chose to implement the minimum daily wage policy of 300 baht in seven provinces in the first round. The government announced a nationwide trial of a minimum daily 300 baht policy starting from January 1, 2013. The salary adjustment system in April 2012 increased the national average minimum wage by 40%, which affected the orders received by merchants to decrease by 20-30%. After the comprehensive salary increase in 2013, overseas merchants will no longer order products from Thai factories, but will instead order from Vietnamese and Cambodian manufacturers because their production costs are lower than those in Thailand. After Thailand’s minimum daily wage policy of 300 baht, rising labor costs in the labor-intensive industry textile and garment manufacturing industry affected market competitiveness.
The impact of the phenomenon of Thai baht appreciation. The appreciation of the Thai baht will have a more serious impact on enterprises, employment and the non-performing debt problems of financial institutions, which will in turn lead to a slowdown in domestic consumption. Currently, Thailand’s labor-intensive industries such as the clothing industry, shoemaking industry, and leather industry are facing the problem of weakening competitiveness, that is, labor costs are at a disadvantage compared with low-cost countries such as China, India, and Vietnam, while the appreciation of the Thai baht has Acceleration intensifies existing problems, forcing companies to close down.
Lack of labor and economic problems in European and American markets. The impact of the economic crisis in Europe and the United States has weakened market demand, and for Thailand, the world market for textiles and apparel has been affected. The Office of Industrial Economics predicts that Thailand’s total exports of textile products will reach US$2.448 billion in 2013, a decrease of 3.41% compared with the same period last year. As for the output of ready-made clothes, the cumulative output for the whole year is expected to reach 18.7 billion pieces, a decrease of 2.7% compared with the same period last year.
