Thailand-Info und Forum

Thailand reports 33 factory closures, 9,496 laid off

Aug 10, 2007, 2:55 GMT

Bangkok - Thirty-three Thai factories went bankrupt during the first half of 2007, resulting in 9,496 labourers being laid off, media reports said Friday.

The Labour Ministry has put another 196 businesses 'under watch' for immediate closure in the coming months, The Nation newspaper said.

Among the largest factories to close their doors during the first six months of the year was Silp South East Asia Import Export, a sportswear manufacturer that has been forced to lay off more than 4,000 labourers.

Silp South East Asia's management claimed that it could no longer compete in the garment export sector with countries such as Vietnam and China.

Although Thailand's exports grew 18 per cent in value during the first half of this year, the increases were primarily in higher-tech sectors such as automotive, electronics and electrical appliances.

Lower-tech, labour-intensive industries such as textiles and shoes have lost competitiveness because of a 19-per-cent appreciation of the baht currency against the dollar since January 2006 and higher labour costs compared with rivals such as Vietnam.