Thai Footwear Industry Facing Financial Difficulties Led to Sharp Drop in Orders

According to Thailand's "World News" reported on February 8, Chaney, President of the Thai Footwear Association, revealed that the internationally renowned brands of shoe companies began to reduce the orders of Thailand, and turn to China, Vietnam, and Indonesia, the next single, because Thailand lack of senior technicians, a worker's salary is increased with the increase of production costs, especially the lowest average daily salary of 300 baht policy implemented by the government in the country, making more difficult the operation of the domestic small and medium-sized enterprises (SME). Chaney said that the shoe factory in Thailand only requires the production of each pair of shoes, an increase of 5-10 baht, but also caused a reduction of brand shoes business orders because each order in advance for one year, and ordering large. China, Vietnam, and Indonesia on the same brand, same model of shoes production costs 20% less than in Thailand.
In the past, the development of the Thai Footwear fastest in Asia, making international brand name shoes such as Nike, Adidas, Thailand to produce its brand shoes, but now gradually reduce the amount of orders, and transferred to neighboring countries. Although the technology of the neighboring countries, labor is lower than Thailand, but many countries have to rely on machine production, making the brand shoes enterprises to pay more attention to production costs. Chaney said, long ago, the 2,3-Japanese shoe company production base transfer from Thailand to Burma, because of lower production costs, Burma Students can make better use of English, the monthly salary of only 7,000-8,000 baht, Thailand the same level of pay is as high as 20 000 baht.
Main Xinawala of the Thai Leather Goods Association, said the domestic leather products manufacturing plant began and foreign customers within the consultation prices, because the government's minimum daily wage policy has resulted in production costs, some companies agreed prices, but there are also many companies do not want to, so called on the government to slowdown in the salary policy, or gradually increase. On the export side, the enterprise began to develop high-end market, in order to reduce the competition of low cost producers in China, Vietnam, such as the production of crocodile skin products, improve product value-added leather products might not be able to compete and India, because the raw materials in Thailand lack of a large number of imports from India every year.
It's written by skate shoes date 2.13.2012