Thailand 20-30% Small And Medium Shoe Enterprises Face Bankruptcy Threat

　　 Thailand Charny, chairman of Footwear Association, said that at present, there are more than 6000 shoe companies in Thailand. But in 2013, 20-30%'s small and medium-sized shoe companies will face a threat of bankruptcy. The minimum wage of 300 baht will be implemented nationwide in January 1, 2013, and some small and medium-sized shoe companies will not be able to bear the rising labor cost.

Cheney said that the US and European economies have not yet recovered, resulting in various capital inflows. ASEAN market To boost the competitiveness of ASEAN market, but according to the association's survey data, members of 20-30%'s association do not know about AEC, and still produce in the way of low household industry level.

Cheney revealed that some of the recent large Footwear Company The small and medium size shoe factories owned by their subsidiaries have turned to accept small orders, so competition between small and medium-sized shoe companies will intensify in 2013.

SME, vice president of the Thailand Industrial Institute, said that at present, the small and medium enterprises (SMEs) of the foreign government had begun to suffer from serious labor shortage. Workers quit their jobs in the rush hour to get involved in agricultural production, especially when rice and sugar cane were harvested.

Wan Luo points out that there are tens of thousands of workers who are engaged in agricultural production and work in factories. This group of people worked in factories for only 7-8 months in 1 years, and resigned in agricultural production in the other 4-5 months, and then returned to the factory at the end of the busy season.

For businessmen, these workers can not be regarded as efficient employees, and are hard to cultivate and develop. But businesses have to employ them. Because there are many labor shortages in many areas, Thai workers are more economical than employing overseas workers. If we hire overseas workers, businesses will need to invest extra money in overseas labor skills and exchange training.

According to Wan Luo, at present, the small and medium-sized factories in the foreign government have begun to reduce the employment of inexperienced labourers, except those with better technical skills. They will also dismiss less efficient workers so as to reduce production costs after the implementation of the policy of 300 baht minimum wage.

If the above measures are still unable to help businesses alleviate the problem of high production costs, some businesses plan to stop their existing business operations and turn to new factories that invest in government infrastructure projects, such as logistics and transportation systems, because they can help to reduce production costs to some extent, and some businesses are planning to move their production bases to neighboring countries.

In the questionnaire survey of 70 small and medium enterprises, the minimum daily wage of 300 baht policy will have a greater impact on the 29 governs.