manufacturing labor cost in thailand

MNCs should also consider local companies as suppliers that can build regional ecosystems and help mitigate exposure to future supply chain disruptions. According to International Labor Organization (ILO), the Thai manufacturing sector by-and-large should stop relying on a model based on semi- and un-skilled labor with limited technological investment. (May 31, 2023). If a customer perceives a strong emotional connection between their own self-image and the personality of a particular brand, this can lead to a significant emotional attachment between the two. This analysis highlighted several types of opportunities for ASEAN manufacturers. This is being driven by rising income, urbanization, and customer preferences toward energy-efficient home equipment and environmentally friendly home dcor. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. Although Thailand's well-developed infrastructure system, low-cost and skilled labor force, and strategic location in the Mekong Basin region make the economy attractive for investment, some investors find that local regulations lack transparency and are challenging to navigate. You deserve a salary increment but you are not sure how to ask.Check our 25 sample Salary Increase Request emails. We wrote a guide to explain all about the different scenarios. Electronics manufacturing industry in Thailand - Statista Next-generation Industry 4.0 technologies and mounting pressures on companies to lower their greenhouse gas emissions, meanwhile, are creating new opportunities by changing the game. The. Manufacturers that place a high priority on adopting green practices and improving efficiency could find new opportunities in global markets. About 35% of businesses in Thailand said their most significant cyber breach cost $1 million or more in damage. The online shopping platforms most used by Bangkok consumers are Lazada, Shopee, PowerBuy, and JD Central. 1. The new legislation authorizes the National Cybersecurity Committee (NCSC) to summon individuals for questioning and enter private property without a court warrant. We have a plan for your needs. The average MPI during the first five months of this year came in at 96.36, representing a drop of 4.49% compared to the same period last year. A person working in Factory and Manufacturing in Thailand typically earns around 66,200 THB. like in Singapore and South Korea. Key Findings Thailand's working-age population was 57 million in 2019 of whom 67% participated in the labor market. The survey is based on a study . Data analytics helps to zero in on what Thai consumers really want, fueling customization of goods and services across industries. Those who got bonuses reported rates ranging from 1% to 3% of their annual salary. to manufacturing wage employment in both India and Indonesia was less than 30 per cent, echoing their longer-term aim to shift towards higher-end manufacturing. Figures have been rounded. to improve cyber-resilience and to bestow sweeping powers to state cyber agencies with sweeping powers, according to OpenGov Asia. Thai consumers mindsets are focused on living the smart life which is why there is a, . This is attributed to about 55% of households using, smartphones or mobile devices for shopping. than those foreign owned. PDF Wages and productivity in the garment sector in Asia and the Pacific An Agenda for Enabling the Manufacturing Transition. Data was regrouped into brackets to provide a better understanding of what salaries can be expected. Cybersecurity Management and Data and Privacy Protection. 340 baht (14 provinces) Prachin Buri, Nong Khai, Ubon Ratchathani, Phang Nga, Krabi, Trat, Khon Kaen, Chiang Mai, Suphan Buri, Song Khla, Surat Thani, Nakhon Ratchasima, Lop Buri, and Saraburi. But capital expenditure, human capital training and other preparation work to set up a supply chain can be expensive and time consuming. The US, EU, and Japan have traditionally been the biggest sources of FDI. Policymakers should also help create business-friendly conditions for up-and-coming sectors by harmonizing regulatory standards, reducing local content requirements and other non-tariff barriers, and facilitating infrastructure investments. What are the costs of manufacturing in Mexico in 2021? The ten-nation Association of Southeast Asian Nations (ASEAN) now has a golden opportunity to move up the manufacturing value chain. Doing Business in Thailand | QAD Blog Consumer Consumption and Business Recovery. Labor cost index Latest value 117.09 Reference Q4 2022 Measure index points Source Bank of Thailand For that indicator, we provide data for Thailand from Q1 2013 to Q4 2022. This will be particularly valuable in developing a globally competitive manufacturing ecosystem in such highly regulated, technology-intensive industries as medical technology and electric vehicles. About 35% of businesses in Thailand said their most significant, cyber breach cost $1 million or more in damage, Organizations in the New Normal should consider cyber insurance plans and. It will also enable companies to transport goods and materials seamlessly within the region. There is also assessment on commitment to gender equality, diversity, and inclusion as well as decisions by policymakers and business leaders on aspects of cybersecurity management and data and privacy protection. Available: https://www.statista.com/statistics/1278239/thailand-labor-size-in-manufacturing-sector/, Number of employees in manufacturing sector in Thailand from 2011 to 2022, Immediate access to statistics, forecasts & reports, CAGR of business loans among commercial banks Thailand 2022, by industry, YOY GDP growth of manufacturing sector Thailand Q1 2021-Q1 2023, YOY growth of MPI Thailand Q1 2021-Q1 2023, Quarterly capacity utilization rate Thailand Q3 2020-Q1 2023, PMI of manufacturing sector Thailand 2022-2023, Quarterly MPI of electronics Thailand Q3 2020-Q1 2023, Quarterly MPI of electrical appliances Thailand Q4 2020-Q1 2023, MPI of of motor vehicles, trailers, and semi-trailers Thailand 2022-2023, MPI of of machinery and equipment Thailand 2022-2023, MPI of of food products Thailand 2022-2023, Monthly production volume of electrical appliances Thailand 2023, by type, Production volume of automobiles Thailand 2023, by type, Production growth of food products Thailand 2023, by type, Quarterly export value of electrical appliances Thailand Q4 2020-Q1 2023, Export value of electronics Thailand Q1 2020-Q4 2022, Export value of food products Thailand 2022, by category, Number of production establishments Thailand 2018-2021, Number of production establishments Thailand 2021, by size, Manufacturing establishments inspected for safety and health Thailand 2021, by status, Number of temporarily suspended manufacturing establishments Thailand 2021, by status, Number of workers in manufacturing sector Thailand 2011-2022, Number of workers in production establishments Thailand 2021, by size, Manufacturing employees inspected for safety and health Thailand 2021, by gender, Consumer electronics industry in Thailand, Number of employees in manufacturing sector in Thailand from 2011 to 2022 (in million), Find your information in our database containing over 20,000 reports. Chinese automakers pushing aggressively into EVs are also looking to expand in the region. These Countries Have Cheap Manufacturing Costs | U.S. News Hourly Wage = Annual Salary / ( 52 x 5 x 8 ). The deepening integration of the regions economies will create opportunities for companies to develop multinational value chains that benefit from each locations competitive strengths. Current job openings: Download historical data for 20 million indicators using your browser. MNCs should leverage ASEANs diverse landscape to take advantage of the unique supply chain advantages offered by different sites that, combined, offer competitive labor costs, educated talent, physical connectivity, and easy access to a growing market within and beyond the region. The Future of Work in Thailand - Outsource Asia Unsurprisingly, many Thai brands are implementing AR and VR marketing during the pandemic as a way to connect with Thai consumers. Directly accessible data for 170 industries from 150+ countries This is a source of concern for companies in Southeast Asia: carbon dioxide emissions have risen rapidly in the region. Workforce Thailand's unemployment rate has been inching down as the government's economic stimulus efforts have taken effect. Eco-responsibility. We estimate that ASEAN manufacturing output could grow by an additional $400 billion to $600 billion a year by 2030 from 2020 levels. Nissan, Hyundai, General Motors, Ford, BMW, and other major OEMs with extensive production in the region are betting big on EVs. In Jordan, the garment industry provides jobs for both While this would encourage more and more firms to integrate automated technologies into their production lines, the biggest casualties would be 16.9 million unskilled Thai employees which is 45% of the overall workforce. As soon as this statistic is updated, you will immediately be notified via e-mail. 343 baht (1 provinces) Ayutthaya. Being seen as offering affordable manufacturing costs one of five attributes used to develop the Open for Business sub-ranking in the 2019 Best Countries report. As a benchmark of ASEANs current export strength in each sector, we used the regions share of global exports. Purchasing / Buyer / Procurement Engineer, Engineer (Mechanical / Chemical /QA / AC), Engineering / IE / Process Improvement Manager, Source: Adecco Consulting Ltd., Thailand salary guide 2023, as of January 2023: www.adecco.co.th/salary-guide, Software development and Software operation (Dev Opt), Human Resource Executive / Officer / Staff, Digital Content Editor / Content Creator / Social Media Content Editor, Not less than 1.5 times of hourly wage rate, Not less than 2 times of hourly wage rate, Not less than 3 times of hourly wage rate, Source: Department of Labor Protection and Welfare, as of March 2020: www.labour.go.th, An uninterrupted period of 120 days but less than 1 year, An uninterrupted period of 1 year but less than 3 years, An uninterrupted period of 3 years but less than 6 years, An uninterrupted period of 6 years but less than 10 years, An uninterrupted period of 10 years or more, An uninterrupted period of 20 years or more, Source: Royal Thai Government (www.thaigov.go.th) as of October 16th, 2022, Exchange Rate: US$1 = Baht32.95 as of January 31st, 2023, Thailand Board of Investment 555 Vibhavadi-Rangsit Road, Chatuchak Bangkok 10900 Thailand 675 Follower s Follow Summary Low cost manufacturing is moving away from China. In 2012, average labor productivity in Vietnam's manufacturing sector was only about 7 percent of that in China. The analysis revealed that roughly 65% of all reported salaries fell within the range of 35,100 THB to 65,600 THB. Thai workers should be equipped with the skills necessary to remain employable in the manufacturing industry of tomorrow and to prevent decline in overall labor productivity and the threat of premature de-industrialization. Thai consumers mindsets are focused on living the smart life which is why there is a stronger demand for smart home devices. 2 While manufacturing growth has been led by labor-intensive assembly work, there has also been strong export growth in higher-value goods such as machinery and electronics. As of 2017, the rate was .7%, giving Thailand one of the lowest unemployment rates in the world. Companies within thriving industries tend to provide higher and more frequent raises. Trading Economics welcomes candidates from around the world. Two values that are highly correlated with the median are the 25th and 75th percentiles. As a result, they are typically assigned to specific sets of responsibilities at the bottom of the pyramid. How much money does a person working in Factory and Manufacturing make in Thailand? ", Bank of Thailand, Number of employees in manufacturing sector in Thailand from 2011 to 2022 (in million) Statista, https://www.statista.com/statistics/1278239/thailand-labor-size-in-manufacturing-sector/ (last visited July 05, 2023), Number of employees in manufacturing sector in Thailand from 2011 to 2022 (in million) [Graph], Bank of Thailand, May 31, 2023. Leaders face an uncertain landscape. Thailands online market created $5 billion in gross merchandise value in 2019, contributing to an average annual growth of 54% over the past four years. According to International Labor Organization (ILO), the Thai manufacturing sector by-and-large should stop relying on a model based on semi- and un-skilled labor with limited technological investment. Sourcing & Manufacturing in Thilnd: An Introduction The average yearly salary for an employee is 1,160,000 THB (Thai Baht) or 35,871 USD, according to the August 2021 exchange rate. Managing Director & Partner; Southeast Asia Lead, Public Sector, Partner & Director, Global Trade & Investment. a 19 percent compound annual growth rate in labor costs since 2007). Also, a new Cybersecurity Regulating Committee will have broad authority to examine computer data and networks, copy information, and seize computers and other equipment. However, 35% of Thais find it difficult to differentiate between Thai brands and multinational brands. South Koreas largest business groups have invested in a range of industries in Vietnam. Salaries in Factory and Manufacturing in Thailand range from 24,500 THB (starting average salary) to 166,000 THB (maximum average salary, actual maximum is higher). Listed above are the average annual increase rates for each industry in Thailand for the year 2022. In more nascent ASEAN manufacturing sectors that are likely to experience supply chain shifts, there will be opportunities to pioneer growth through the establishment of new clusters in the region. The data displayed here is the combined average of many different jobs. API users can feed a custom application. Impact of Automation and Technology to Job Availability. Abbott Laboratories already produces defibrillators and cardiovascular products in Penang, Malaysia, leveraging the areas skilled labor and growing medical technology ecosystem. Hyundai, for example, began construction in 2020 of a $1.5 billion plant in West Java to build EVs and is reported to be working with LG Chemical on a lithium-ion battery plant in Indonesia. With a female-to-male labor-participation ratio of 78%, women consumers will contribute to Thailands GDP $80 billion per year by 2030. Additionally, the diagram reveals that 75% of individuals earn less than 74,600 THB, while 25% earn more than that. ASEAN currently plays a relatively small global role in higher-value industries such as medical technology, biopharmaceuticals, and chemicals. If Thailands level of technological skill continues unchanged, he estimates that the countrys GDP will only increase by 2.1% each year in the future. Those figures should be taken as general guidelines. They should consider innovative supply chain models, such as twinning, to situate different links of the value chain across the best-suited locations in ASEAN. Thailand Average Monthly Wages in Manufacturing, Thailand Inflation Rate Lowest in Near 2 Years, Thailand Manufacturing PMI Falls to 3-Month Low, Thailand Private Investment Rebounds in May, Thailand Personal Spending Rises the Most in Over a Year, Thailand Industrial Output Drops Less than Expected, Thailand Imports Drop Less than Estimated, US Factory Orders Rise Less than Forecast, Oil Prices Swing on Supply Cuts, Demand Concerns, Baltic Exchange Dry Index Drops Further to 1-Month Low, Canadian Dollar Depreciates from 9-Month High. Average Monthly Salary 66,200 THB ( 794,000 THB yearly) LOW 24,500 THB AVERAGE 66,200 THB HIGH 166,000 THB A person working in Factory and Manufacturing in Thailand typically earns around 66,200 THB per month. This is a very rough estimate. Get quick analyses with our professional research service. Social media platforms are the preferred online sales channel. Change in salary based on experience varies drastically from one location to another and depends hugely on the career field as well. Standard users can export data in a easy to use web interface or using an excel add-in. While FDI dropped in Indonesia in 2015 through 2019 compared with the previous five-year period, for example, domestic capital formation expanded by 14% over that period. As a Premium user you get access to the detailed source references and background information about this statistic. 15 April, 2022 In this article, we review Thailand as a manufacturing destination and why it's considered one of Asia's most important export markets. Singapore-based agribusiness giant Olam International, for example, is developing Jiva, an innovative digital platform that transforms the agrifood supply chain by helping small farms access high-quality inputs and sell produce directly to end buyers. With over 1.2 million monthly active Facebook Shop users, Thailand already ranks fifth in Southeast Asia for the highest share of social shoppers. As automation and the use of robots expand and more lights-out factories become the norm, demand for lower-skilled labor will wane. Cybersecurity threats and challenges have more than doubled since the COVID-19 outbreak as firms have shifted to online platforms and work from home arrangements have been implemented, said PwC Thailand. Low Cost Manufacturing In Asia - The Mighty Five - MITI V The Metaverse is a digital environment that uses augmented and virtual reality technologies where users can access services and experiences such as shopping, conferences, investment, trade negotiations, and entertainment. The Trading Economics Application Programming Interface (API) provides direct access to our data. Moreover, 67% of Thai consumers are also intending to increase their online purchases in the future in e-commerce marketplaces. Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. Women are less likely to be hired for senior managerial positions and even less likely to be promoted to them, unless they work for their own company or one that is owned by the family, says Angkhana Neelapaijit, a former human rights commissioner and chair of the sub-committee on gender equality and womens rights. The cost of unskilled and semi-skilled labours, especially in Prachinburi is also competitive . What does this mean for you? The average increase in compensation while changing jobs is approximately 10% more than the customary salary increment.The decision really depends on the situation and experience among many other factors. In the field of Factory and Manufacturing in Thailand, the average difference between the salary of male and female employees is 9%. The government should accelerate investment in human capital and technological upgrading like in Singapore and South Korea. Chinese consumer appliance giant TCL, for example, recently built a TV plant in Vietnam to serve both ASEAN and global markets. The average value for Thailand during that period was 112.82 index points with a minimum of 98.26 index points in Q2 2013 and a maximum of 133.86 index points in Q2 2020. The most immediate priority should be to ratify the RCEP agreement to reduce regional trade barriers and ensure that flows of goods and capital are as frictionless as possible. Labor cost data from the International Labour Organization (ILO) provide an estimate of employers' expenditure toward the employment of their workforce, and reflect wages paid to employees, the cost of employee benefits, and payroll taxes paid by an employer.Labor costs are a crucial factor in the ability of enterprises and countries to compete at national, regional, and global . Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2023, Quarterly smartphone market share worldwide by vendor 2009-2023, Number of apps available in leading app stores Q3 2022, Profit from additional features with an Employee Account. The number of unemployed individuals has already reached 1.2 million between 2012 and 2019. BCGs research reveals six key success factors and the steps companies need to take today. Social media platforms are the preferred online sales channel. Women empowerment. People tend to confuse bonuses with commissions. February 23, 2022 This article on the future of work in Thailand examines aspects of the post-pandemic era, ranging from the overall status of the local labor market up to the long-term influence on consumer consumption and business recovery. Thailand rose three spots to fifth place for manufacturing cost competitiveness, according to U.S.-based consultancy Cushman & Wakefield's annual Global Manufacturing Risk Index, which examined 47 countries in Europe, the Americas and Asia-Pacific. According to a recent HKTDC Research survey, 86% of middle-class Thais are increasingly prepared to spend money to, customize their homes to fit their personal style. The latest date of update is, therefore, used as the release date. Current job openings: 2023 Data - 2024 Forecast - 2013-2022 Historical - Chart, Thailand Inflation Rate Lowest in Near 2 Years, Thailand Manufacturing PMI Falls to 3-Month Low, Thailand Private Investment Rebounds in May, Thailand Personal Spending Rises the Most in Over a Year, Thailand Industrial Output Drops Less than Expected, Thailand Imports Drop Less than Estimated, US Factory Orders Rise Less than Forecast, Oil Prices Swing on Supply Cuts, Demand Concerns, Baltic Exchange Dry Index Drops Further to 1-Month Low, Canadian Dollar Depreciates from 9-Month High. Sustainability is beginning to affect the purchase decisions of Thais as it has announced a ban on single-use plastic bags in 2020. The country would face enormous employment losses if it fails to adapt emerging disruptive technologies (TDRI), according to the Thailand Development Research Institute (TDRI) President Somkiat Tangkitvanich. Middle-to-upper-income families also desire to become more comfortable and. The Tailwinds Favoring ASEAN Manufacturing. The new legislation authorizes the National Cybersecurity Committee (NCSC) to summon individuals for questioning and enter private property without a court warrant. Drawbacks of Labour Cost and Skilled Workers Supply Being an uppermiddle income country, Thailand does not offer a lowwage competitive advantage for labourintensive industries. Opportunities for ASEAN will also grow in the next-generation automotive and mobility space. 3 One major difference between salaried employees and hourly paid employees is overtime eligibility. Most of the populationabout 50.7%is clustered around Bangkok. With over 1.2 million monthly active Facebook Shop users, Thailand already ranks fifth in Southeast Asia for the highest share of social shoppers. Salaries range from 24,500 THB (lowest average) to 166,000 THB (highest average, actual maximum salary is higher). Manufacturing sector in Thailand - statistics & facts | Statista Breakdown of economy Thailand Q1 2023, by sector, Share of manufactured good exports Thailand 2023, by product, Production volume of electronics Thailand 2023, by product, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. , such as increased job possibilities and further boosting the countrys economy post-pandemic, the report revealed. Revenue generators usually get more and higher bonuses, higher salaries, and more frequent salary increments. Projections of foreign-direct investment and jobs are based on historical benchmarks. Putting all variables aside, if a person can afford the costs of higher education then the return on investment is definitely worth it. 2020 data for all ASEAN nations was not available at time of publication. The numbers seem to support this tactic. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. For example, rising support around the world for environmental sustainabilityillustrated by the EUs plans to implement a carbon border taxwill force companies selling everything from cars to chemical products to assess the greenhouse gas footprint of their entire value chain, rather than focus only on cost. This will increase their competitiveness in a world where digitalization and sustainability are becoming key economic considerations. The number of unemployed individuals has already reached 1.2 million between 2012 and 2019. The metaverse wave is consistent with Thailand 4.0, which aims to turn the country into a value-based economy centered on technology, innovation, and creativity. Southeast Asian companies should also explore partnerships with leading Chinese companies that are entering the regional market or seeking to diversify their production footprints. Labour Costs - Countries - List | Asia - TRADING ECONOMICS If Thailands level of technological skill continues unchanged, he estimates that the countrys GDP will only increase by 2.1% each year in the future. First, we cover the benefits and disadvantages of choosing Thailand for manufacturing. 3%.2 They also pledged to harmonize many rules and regulations that affect e-commerce and trade. Still, Southeast Asia remains heavily dependent on imported medical technology and biopharmaceutical products. Then you can access your favorite statistics via the star in the header. Thailand: labor size in manufacturing sector 2022 | Statista facts. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. These figures tend to change frequently. Building manufacturing ecosystems that are capable of realizing this potential will require greater investments in infrastructure and skills training. Thais are increasingly seeking ways to express their individuality through what they buy and how they live. 345 baht (1 provinces) Chachengsao. Thailand . Targeted responses focusing on key sectors and segments of the workforce are vital for recovery, as are continuing efforts to ensure everyone receives a vaccination, including migrant workers, said Graeme Buckley, Thailands Country Director for the International Labor Organization (ILO).
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