Thai footwear industry affected by minimum daily salary policy

On the 9th, Thailand’s “World News” reported that the Thai Footwear Association’s Chani revealed that due to the government’s implementation of a minimum daily average salary of 300铢, which drives up production costs, internationally renowned shoe companies have started to reduce their exposure to Thailand. The order, while turning to China, Vietnam, Indonesia and other underground orders, the operation of domestic small and medium-sized enterprises (SME) is even more difficult. Chaney said that Thailand's footwear industry has developed rapidly, and international brands such as Nike and Adidas have been produced in Thailand, but orders are now gradually shifting to neighboring countries with lower production costs. Not long ago, several Japanese shoe companies shifted their production bases from Thailand to Myanmar because Burmese undergraduates were able to use English better, with a monthly salary of only 7,000-8,000 baht, while Thailand’s equivalent wages were as high as 20,000. baht.

The Thai Leather Products Association ** Navarre said that due to the government’s minimum daily wage policy leading to higher production costs, domestic leather products production factories began to negotiate price increases with foreign customers, while paying more attention to the development of high-end markets such as crocodile leather products. To reduce competition with countries such as China and Vietnam.