Manufacturers urged to look beyond Thailand's borders
11/09/2007
The Thai government is urging manufacturers in the country to consider moving their operations to neighbouring Vietnam instead.
A new report released by the government's Industrial Economics Information Centre suggests production costs are 20% lower in Vietnam because of import-duty exemptions for raw materials, cheaper labour and lower energy costs.
On the question of labour costs, the report said Thailand had the highest average wage levels in the region, $14 a day. By comparison, Vietnam had the lowest, only $3.68 a day.
The same study said China and India would also be interesting locations for Thai-based manufacturers to consider.
An initial project to help companies expand into other countries is focusing on the textile sector, but the commerce ministry has said that if this is successful, the leather sector will be next.
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