Thai clothing manufacturers move to cheaper Vietnam

Rising local production costs have pushed five major Thai clothing manufacturers to re­locate to Vietnam, transferring combined investments worth around THB1.5bn (US $50m).

Meanwhile, Thai garment producers have called for the government to work towards increasing worker productivity in line with its policy to increase minimum wages, saying the current populist policy has destroyed incentives for labourers to develop skills and has hurt industry growth. Sukij Kongpiyacharn, president of the Thai Garment Manufacturers Association (TGMA), said the Democrat Party’s election promise to increase minimum wages by 25% over the next two years is certain to reduce industry competitiveness.