Foreign-direct investment (FDI) has been a key driver of manufacturing growth in the region, accounting for 8% of gross capital formation in the Philippines and 23% in Vietnam in 2019, for example. Boston Consulting Group is an Equal Opportunity Employer. The Trading Economics Application Programming Interface (API) provides direct access to our data. Up to 90% of Thailands population could be classified as consumption class by 2030, meaning they spend more than $11 per day in purchasing power parity terms and can afford not only necessities like food and accommodation, but also discretionary expenditure. Because taxes may differ across sectors and locations, it is difficult to accurately calculate the net salary after tax for every career. Trading Economics welcomes candidates from around the world. Middle-to-upper-income families also desire to become more comfortable and reconnect with the home environment; thus, it is reflected on 80% of Thais prioritizing self-care while balancing happiness and duties. The countrys workforce is the sixth largest in the East Asia and Pacific region and the fourth largest in the Association of Southeast Asian Nations (ASEAN). Figures have been rounded. This page provides - Thailand Labour Costs- actual values . A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below reflects contraction. This will require a change in perspective from focusing on individual countries to viewing the region as an integrated network. Although the manufacturing sector's contribution to Thailand's gross domestic product (GDP) has fluctuated in the. The source did not provide the date of publication. The Thailand parliament announced the passage of a contentious cybersecurity law in 2019 to improve cyber-resilience and to bestow sweeping powers to state cyber agencies with sweeping powers, according to OpenGov Asia. Thailand's Electronics Sector Still a Magnet for Investors in Jan-Sep Thais are increasingly seeking ways to express their individuality through what they buy and how they live. Great Wall Motor, for example, began production in Rayong, Thailand, in 2020. Unsurprisingly, many Thai brands are implementing AR and VR marketing during the pandemic as a way to connect with Thai consumers. Learn more about how Outsource Asia can help your organization embrace the future of work. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Industry-specific and extensively researched technical data (partially from exclusive partnerships). As for inclusion of people with disabilities in the workplace, Thailands Persons with Disabilities Quality of Life Promotion Act BE 2550 (2007) requires public and private organizations to hire one disabled person for every 100 employees. Aging. 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. Direct access to our data from your apps using any programing language. Profit from the additional features of your individual account. 1. Yet while several other Asian manufacturing economies have evolved into global leaders in advanced industries and innovation, most of Southeast Asia is still viewed primarily as a location for low-wage assembly work. But shifts in global supply chains arising from trade tensions and the COVID-19 pandemic are creating opportunities for ASEAN manufacturers to break into or greatly expand their market share in such sectors. The salaries within the Factory and Manufacturing domain in Thailand exhibit significant discrepancies across various professions. The new legislation authorizes the National Cybersecurity Committee (NCSC) to summon individuals for questioning and enter private property without a court warrant. PDF Wages and productivity in the garment sector in Asia and the Pacific 74% of surveyed staff in Factory and Manufacturing reported that they haven't received any bonuses or incentives in the previous year while 26% said that they received at least one form of monetary bonus. How to compare your salary. "Number of employees in manufacturing sector in Thailand from 2011 to 2022 (in million)." To fully capture the opportunities presented by changing global supply chains, trade developments, and technological advancement, action will be required from MNCs, Southeast Asian companies, and the regions governments. Up to 90% of Thailands population could be classified as consumption class by 2030, meaning they spend more than $11 per day in purchasing power parity terms and can afford not only necessities like food and accommodation, but also discretionary expenditure. Rather, it represents the lowest figure reported in a salary survey that involved thousands of participants and professionals from across the entire country. Companies within thriving industries tend to provide higher and more frequent raises. You deserve a salary increment but you are not sure how to ask.Check our 25 sample Salary Increase Request emails. The. The convergence of a number of global trends is creating opportunities for ASEANs manufacturing sector to leap to the next level. The number of unemployed individuals has already reached 1.2 million between 2012 and 2019. The number of unemployed individuals has already reached 1.2 million between 2012 and 2019. To identify which ASEAN industrial sectors are most likely to benefit from these megatrends, we assessed supply chains along two dimensions: the likelihood that supply chains will shift and the regions current strength in each of those sectors. According to Mintel Thailand research, 47% Thai consumers are making more efforts to buy local goods, products, and services or to. Thai consumers mindsets are focused on living the smart life which is why there is a, . This will increase their competitiveness in a world where digitalization and sustainability are becoming key economic considerations. Only 5% of individuals earned a gross salary of 79,400 THB or higher. Industries and product expertise It's exciting to be a trailblazer manufacturing in a new location. For well-established sectors in which supply chains are most likely to shift, manufacturers can leverage growing interest in the region to become more competitive by innovating their sourcing networks. Chinese automakers pushing aggressively into EVs are also looking to expand in the region. These Countries Have Cheap Manufacturing Costs | U.S. News The country's manufacturing purchasing managers' index (PMI) was recorded at 53.2 last month, down from 58.2 in May and the record high rate of 60.4 in April, indicating a strong but lower growth momentum, according to S&P Global. Chinese consumer appliance giant TCL, for example, recently built a TV plant in Vietnam to serve both ASEAN and global markets. Notes: This approach was deemed more accurate than relying solely on the average salary, as it offers greater insights into the distribution of salaries in the field of Factory and Manufacturing in Thailand. Though gender should not have an effect on pay, in reality, it does. However, its unemployment rate jumped to 2.25% from 1.89% during Q2 2021 a 16-year high due to tougher coronavirus restrictions. We also considered barriers to change, such as high capital costs or a lack of alternative sources of supply. 26 Oct, 2020, 20:15 IST BANGKOK, Oct. 26, 2020 /PRNewswire/ -- The COVID-19 pandemic and the US-China trade friction have failed to slow Thailand's resilient electronics and electrical (E&E). 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. People tend to confuse bonuses with commissions. Brands can highlight their proud to be local credentials by making claims like homegrown or locally sourced ingredients. As of September 2019, the national average wage in the manufacturing sector stood at THB12,910 (approximately US$430) per month[3], with large variations across . BCGs research reveals six key success factors and the steps companies need to take today. year.1 population growth in China and Thailand are especially low, and if the population structure is viewed according to age, the population of those 19 years old or younger has already fallen below 30 percent. With over 1.2 million monthly active Facebook Shop users, Thailand already ranks fifth in Southeast Asia for the highest share of social shoppers. This is attributed to about 55% of households using smartphones or mobile devices for shopping. BCG X disrupts the present and creates the future by building bold new tech products, services, and businesses. 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. Environmental sustainability must become a top priority so that ASEAN manufacturers can be at the forefront of the global trend toward greener supply chains. The electronics industry is one of the most impactful industries in the manufacturing sector in Thailand. By examining the salary distribution diagram, it is possible to determine that 25% of individuals employed in Factory and Manufacturing in Thailand earn less than 45,300 THB, while 75% of them earn more. , such as increased job possibilities and further boosting the countrys economy post-pandemic, the report revealed. 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. This would help provide a roadmap for meeting global standards. In 2022, the number of people working in the manufacturing sector in Thailand amounted to around 6.3 million, indicating an increase from the previous year. Thais are increasingly seeking ways to express their individuality through what they buy and how they live. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. The estimated increase of ASEAN manufacturing output is calculated on the basis of a projected increase of 1% to 2% in ASEANs share of world exports of manufactured goods by 2030 and a decline in the regions goods imports. The latest date of update is, therefore, used as the release date. 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. The emerging economies of Southeast Asia have long been destinations for manufacturers seeking abundant low-cost labor, while Singapore has served as a hub for high-value R&D-intensive industries and trade-supporting services such as finance and logistics. In addition to potential job losses, Somkiat believes that the governments goal of achieving annual economic growth of 5% would be impossible to achieve. ASEAN currently plays a relatively small global role in higher-value industries such as medical technology, biopharmaceuticals, and chemicals. To clarify, the number presented is not the legally mandated minimum wage. 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. Opportunities for ASEAN will also grow in the next-generation automotive and mobility space. 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. Meanwhile, the employment rate in transportation/storage increased 4.6%, while the labor participation rate in manufacturing and wholesale/retail rose 2.1% and 0.2%, respectively. Among non-agricultural sectors, the unemployment rate is more severe due to measures to control the opening and closing of enterprises 9.3% in restaurants, 7.3% in hotels, and 1.3% in construction. MNCs should also consider local companies as suppliers that can build regional ecosystems and help mitigate exposure to future supply chain disruptions. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Main Statistics Wages Thailand Thailand Wages: Minimum and Average Thailand Wages Data Minimum Av. To convert salary into hourly wage the above formula is used (assuming 5 working days in a week and 8 working hours per day which is the standard for most jobs). 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. Abbott Laboratories already produces defibrillators and cardiovascular products in Penang, Malaysia, leveraging the areas skilled labor and growing medical technology ecosystem. The numbers seem to support this tactic. Percentage increase and decrease are relative to the previous value. The most standard form of bonus, where the employee is awarded based on their exceptional performance. 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. As a rule of thumb, you would prefer to be part of the group earning above the median wage, situated on the right-hand side of the salary distribution chart. The data displayed here is the combined average of many different jobs. to incorporate the statistic into your presentation at any time. Managing Director & Partner; Southeast Asia Lead, Public Sector, Partner & Director, Global Trade & Investment. Labour Costs 101.26: 106.84: points: Dec 2022: Compare Wages in Manufacturing by Country. Job creation estimates are based on the ratio of manufacturing FDI and new jobs created over the same period. The Tailwinds Favoring ASEAN Manufacturing. Workforce Thailand's unemployment rate has been inching down as the government's economic stimulus efforts have taken effect. When it comes to e-commerce and 5G technology, Thailand is one of Southeast Asias front-runners. We assume that previously imported goods would be supplied by producers within ASEAN, contributing to a cumulative $900 billion to $1.2 trillion increase in manufacturing output. The term Annual Salary Increase usually refers to the increase in 12 calendar month period, but because it is rare that people get their salaries reviewed exactly on the one-year mark, it is more meaningful to know the frequency and the rate at the time of the increase. Related Expertise: Hyundai is also building a $400 million mobility innovation center in Singapore. There should be plans to accelerate digitization of operations in order to increase productivity and customer service as a result of full-time remote working. In addition to potential job losses, Somkiat believes that the governments goal of achieving annual economic growth of 5% would be impossible to achieve. 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. According to Mintel Thailand research, 47% Thai consumers are making more efforts to buy local goods, products, and services or to prioritize Thai brands than those foreign owned. You only have access to basic statistics. Low labor force participation is just one of the major challenges that Thailand faces in 2022. Manufacturers that place a high priority on adopting green practices and improving efficiency could find new opportunities in global markets. We assume that previously imported goods would be supplied by producers within ASEAN, contributing to a cumulative $900 billion to $1.2 trillion increase in manufacturing output. 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. It is highly possible that the newly labor supply will decrease in the future. ByMichael Meyer,Michael Tan,Rohit Vohra,Michael McAdoo, andKar Min Lim. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 1000+ markets in 190+ countries & territories, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Not all compensation increases are reflected directly in the salary. May 31, 2023. Asia is at the forefront of climate risk, responsible for two-thirds of global economic disruption due to climate change. Trading Economics welcomes candidates from around the world. $278.3 $454.7 $897.7 11.0% 7. . Thailand Labor cost index, December, 2022 - data, chart One major difference between salaried employees and hourly paid employees is overtime eligibility. Use Ask Statista Research Service. Then you can access your favorite statistics via the star in the header.
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