Thailand'S Minimum Wage Policy Stimulates Textile Enterprises' Technological Innovation

< p > > Thailand PhetKasem < a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > Industry Association chairman, Mr Ban said recently that Thailand's small textile enterprises have been hit by the minimum daily wage of 300 baht policy and the rapid appreciation of the Thai baht, and the increase of business cost is not less than 20%~30%.

However, due to the difficulty in raising the price of the products, businesses have to reduce the scale of business, reduce costs, or add new technologies in product production to increase the added value of products and pfer the focus of sales to the domestic market.

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< p > according to a report from the Thailand Development Survey Institute, the minimum daily wage of workers has been raised to 300 baht, leading to a 39.5% rise in personnel costs in small and medium-sized enterprises, resulting in an average increase of 6.4% in total production costs.

The key industries affected include: a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > textiles, garments and so on, all of which are large exporters.

Before the industry, the minimum wage paid to employees is only 80 baht. The government's sharp increase to 300 baht is conducive to promoting domestic consumption capacity, but it also brings pressure to enterprises.

Tara, Secretary General of the Thailand Industrial Institute, said that the policy of implementing a minimum wage of 300 baht was fully implemented nationwide. During the first quarter of this year, 80% of the small and medium enterprises (SME) suffered losses, 23.33% of SME lacked liquidity, and 10.42% of SME faced bankruptcy.

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< p > TA Ying said that according to the questionnaire on the impact of SME's pay adjustment policy, if the government still has no effective help measures, the business will take different measures to deal with the situation, about 42.02% of the businesses will reduce the number of employees, 20.28% of the businesses will lower productivity, 15.94% will dismiss employees, and another 13.04% will announce bankruptcy or relocation of production bases.

At present, unemployment and business bankruptcies are not prominent. They need to wait and see for a while. Unemployed workers may choose to go to large factories for employment.

The wage adjustment policy has led to 54% of the cost of production to a greater extent. The cost of some businesses has risen to 15-24%, partly 7-10%.

18% of the businesses were less affected and the cost grew by only 3-5%.

In this round of pay adjustment policy, only 4% of businesses were not affected.

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< p > at the same time, in the first quarter of this year, 52.94% of the businesses could raise the price of the product, but the space for raising the price was very small, and another 47% could not raise the price of the product.

In addition, the survey shows that 58% of SME still has the ability to maintain operation. Businesses can adjust themselves to reduce production costs, such as reducing the number of employees, reducing overtime and welfare, while improving production efficiency and introducing advanced a href= "//www.sjfzxm.com/news/" > production equipment < /a > technology.

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P said that more than 50% of merchants said they did not benefit from the government's previous support measures for the pay adjustment policy, while only 28% of businesses thought it could play a part, but the effect was minimal.

Most businesses believe that the most effective measures for government support measures are low interest credit assistance measures.

Export is an important pillar of the development of Thailand's textile industry. At present, due to the global recession and European debt crisis, the volume of orders in the European Union, the United States and Japan has fallen by more than 50%.

As a result, merchants shifted their focus to the domestic market, and the proportion of domestic sales increased from 20%~30% to 40%.

Although the small a href= "//www.sjfzxm.com/news/index_c.asp" > textile enterprise < /a > is affected by various unfavorable factors, mutual aid among industries has played an important role in the business.

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P said, although small enterprises have no large enterprises to pfer their production base to the financial resources of neighboring countries, there is still room for development if we strengthen the production of superior products, open markets with special needs and strengthen cooperation among industries.

At the same time, he hopes that the relevant government units will give more help to enterprises in < a href= "//www.sjfzxm.com" > textile production < /a > research and technological innovation, and help small businesses increase sales and value-added products.

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