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. The experience level is the most important factor in determining the salary. 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. Related Expertise: Low labor force participation is just one of the major challenges that Thailand faces in 2022. Labour Cost : Unskilled and Semi-Skilled Manufacturing Labour. Top management personnel and senior employees naturally exhibit higher bonus rates and frequencies than juniors. Salaries for individuals working in Factory and Manufacturing in Thailand are rising in the year 2023 based on recently submitted salaries and reports. From 2015 through 2019, manufacturing exports from ASEAN's ten member states averaged 5% annual growthoutpacing the global average of 3%. 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. To clarify, the number presented is not the legally mandated minimum wage. Thailand . Chinese automakers pushing aggressively into EVs are also looking to expand in the region. As a result, Thailand is, on course to lose up to three million jobs over the next 20 years. It will also enable companies to transport goods and materials seamlessly within the region. The US, EU, and Japan have traditionally been the biggest sources of FDI. The table has current values for Labour Costs, previous releases, historical highs and record lows, release frequency, reported unit and currency plus links to historical . 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. However, its unemployment rate jumped to 2.25% from 1.89% during Q2 2021 a 16-year high due to tougher coronavirus restrictions. 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. Experience and education play a very huge part in the final earnings. All salary and compensation figures displayed here are gross salary figures, that is the salary before tax deductions. If your salary is higher than both the average and the median then you are doing very well. 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. Drawbacks of Labour Cost and Skilled Workers Supply Being an uppermiddle income country, Thailand does not offer a lowwage competitive advantage for labourintensive industries. Standard users can export data in a easy to use web interface or using an excel add-in. Aging. Domestic investment has also become an increasingly important driver. The labor size in this sector was. The emergence of these new consumer segments will have an impact on the consumer landscape in Thailand: As the coronavirus pandemic enters its third year, five fundamental factors will continue to shape consumer behavior patterns in Thailand. Degree costs can be recovered roughly in a year or so. Change in salary based on experience varies drastically from one location to another and depends hugely on the career field as well. Usually, jobs are classified into two categories: salaried jobs and hourly jobs. Thai consumers mindsets are focused on living the smart life which is why there is a, . year.1 Job creation estimates are based on the ratio of manufacturing FDI and new jobs created over the same period. If manufacturers act boldly and imaginatively now, they will be well positioned to capitalize on these shifts. For example, they can adopt new, high-value models of manufacturing to move up the value chain. 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. Manufacturing FDI would rise by $14 billion to $22 billion a year by 2030, or a cumulative increase of $75 billion to $115 billion over the coming decade; around 90,000 to 140,000 jobs would be created annually, or a cumulative 400,000 to 700,000 over the This analysis highlighted several types of opportunities for ASEAN manufacturers. 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. According to new data from the McKinsey Global Institute, consumer consumption in Thailand might rise dramatically over the next decade, from $120 billion to $410 billion. The workforce in agriculture is only 33% while 54% is in the informal employment sector due to low educational level, health challenges, care responsibilities, and old age. They view selfexpression as the new currency in the fashion industry and look for, brands that match their personal experience, 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. Environmental sustainability must become a top priority so that ASEAN manufacturers can be at the forefront of the global trend toward greener supply chains. Data analytics helps to zero in on what Thai consumers really want, fueling customization of goods and services across industries. 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. The Asia-Pacific market outside of China, Japan, and South Korea for all kinds of electric vehicles (EVs) is projected to reach $64 billion by 2024, according to Allied Market Research. There is potential for expansion and for the region to move up the value chain in these sectors. According to new data from the McKinsey Global Institute, in Thailand might rise dramatically over the next decade, from $120 billion to $410 billion. An Agenda for Enabling the Manufacturing Transition. Operations, June 15, 2021 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. . But employment quotas might be a double-edged sword because it conveys the message that people with disabilities should be hired based on their limitations rather than their abilities. 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. Even for sectors that are not as prone to supply chain shifts, there are significant opportunities to boost growth through digitization, manufacturing innovation, and the embrace of sustainability. This is attributed to about 55% of households using smartphones or mobile devices for shopping. Those who got bonuses reported rates ranging from 1% to 3% of their annual salary. Indonesias Salim Group invested $956 million to expand domestic manufacturing capacity for vegetable oil, margarine, and other food products. As a result, Thailand is on course to lose up to three million jobs over the next 20 years. 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. Our Articles Workforce in Thailand Out of the total population of 67.01 million people in Thailand, the proportion of the workforce in the capital of Thailand, Bangkok, and the Central region are decreasing since 2010, while the percentage of the Thai workforce in other regions increase. Business Solutions including all features. If an indigenous industry could be created within ASEAN, there is good reason to believe that manufacturers could export such things, given the regions low costs. As a result, they are typically assigned to specific sets of responsibilities at the bottom of the pyramid. Putting all variables aside, if a person can afford the costs of higher education then the return on investment is definitely worth it. The workforce in agriculture is only 33% while 54% is in the informal employment sector due to low educational level, health challenges, care responsibilities, and old age. Learn more about how Outsource Asia can help your organization embrace the future of work. will have an impact on the consumer landscape in Thailand: Smaller households. Both are indicators. The median income in the field of Factory and Manufacturing is 58,700 THB, implying that half of the workforce in Thailand earns less than this figure, and the other half earns more. To view accurate figures, choose a specific job title. Low labor force participation is just one of the major challenges that Thailand faces in 2022. The government, should accelerate investment in human capital and technological upgrading. The difference between the public or government sector salaries and the private sector salaries in Thailand is 7% on average across all career fields. 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. This is very predictable due to the inherent responsibilities of being higher in the hierarchy. What does this mean for you? What are the costs of manufacturing in Mexico in 2021? 1. You only have access to basic statistics. RCEP member countries, which have a combined population of 2.2 billion and account for around 30% of global GDP, committed to providing duty-free access to goods that represent 92% of tariff lines. This is nearly double the global average at 35% and significantly higher than the Asia-Pacific average at 47%. Indonesia's wage cost is the lowest, it has the fastest rate of increase. And they must act now, while there is opportunity for ASEAN to leverage its competitive advantages and capitalize on the current winds of change. 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. Governments could provide stronger incentives for investment in renewable energy, for example, and implement a regionwide carbon-trading system and emission-reduction targets similar to those of the EU and Japan. 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. This makes the customer more loyal to the brand and raises the brands lifetime value. Similarly, the industry contributed around 17 per cent or less in China, the Philippines and Thailand. Their expertise is usually different from that of the core business operations. , creating business incentives for companies to increase women in leadership roles, fostering a diverse and inclusive corporate culture, providing family-friendly employment options, and supporting women-owned businesses in supply chains, among other things. which is 45% of the overall workforce. So who gets paid more: men or women? Manufacturers that place a high priority on adopting green practices and improving efficiency could find new opportunities in global markets. Data was regrouped into brackets to provide a better understanding of what salaries can be expected. These numbers may vary from one industry to another. Only 5% of individuals earned a gross salary of 79,400 THB or higher. #9 in Cheap manufacturing costs #39 in Best Countries Overall Located in two separate regions in the South China Sea, Malaysia is a small country with a fast-growing economy. Related. Still, Southeast Asia remains heavily dependent on imported medical technology and biopharmaceutical products. Thais are increasingly seeking ways to express their individuality through what they buy and how they live. White label accounts can distribute our data. As soon as this statistic is updated, you will immediately be notified via e-mail. First, we cover the benefits and disadvantages of choosing Thailand for manufacturing. The ASEAN market for medical technology and biopharmaceutical products is growing by around 8% annually and is projected to reach a combined $53 billion in 2024. 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. As consumer interest in buying local products grows, brands have the chance to educate consumers about the benefits of shopping local, such as increased job possibilities and further boosting the countrys economy post-pandemic, the report revealed. Despite launching the project in 2016, it is still not comprehensive enough to meet the ASEAN states development objectives. It represents the central value of salaries. The number of unemployed individuals has already reached 1.2 million between 2012 and 2019. Brands can highlight their proud to be local credentials by making claims like homegrown or locally sourced ingredients. The online shopping platforms most used by Bangkok consumers are Lazada, Shopee, PowerBuy, and JD Central. Trading Economics welcomes candidates from around the world. Hourly manufacturing labor wages across Asia compared to rates in developed economies By VentureOutsource.com Staff Some shifts are taking place in manufacturers relocating operations and supply chains to less expensive countries even thought its costly and risky when moving production. 1 Low Labor Costs Thailand has one of the lowest labor costs in the Asia Pacific region. Boston Consulting Group 2023. Change in salary based on education varies drastically from one location to another and depends hugely on the career field as well. 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. 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. Abbott Laboratories already produces defibrillators and cardiovascular products in Penang, Malaysia, leveraging the areas skilled labor and growing medical technology ecosystem. Those figures should be taken as general guidelines. Social media platforms are the preferred online sales channel. If ASEAN manufacturers take full advantage of the tailwinds and new global supply chain models, the economic impact could be significant. The base salary depends on many factors including experience and education. 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. 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. 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 emergence of Internet of Things and the popularity of mobile banking, e-commerce and digital government services have also led to an increase in the number of cyber-attacks. The hourly wage is the salary paid in one worked hour. [Online]. Get quick analyses with our professional research service. Salary variations differ from person to person. To do so, manufacturers should take advantage of ASEANs economic integration by adopting twinning models, pursuing higher value-added segments, and harnessing Industry 4.0 to boost productivity. A person working in Factory and Manufacturing in Thailand typically earns around 66,200 THB. Thailand 4.0 initiative is the governments new economic strategy for transforming to a high-income country, with robots and digital technologies among the new fields earmarked to lead the way. Malaysia, India, Thailand, Indonesia and Vietnam will continue to benefit. It is also worth noting that its lower wage cost is usually associated with less developed infrastructure or is driven by the fact it is located in more remote places. 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. 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. 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. There are a range of opportunities to partner with MNCs that are pursuing twinning or China Plus One strategies within the region. Leaders face an uncertain landscape. 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. 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 . In 2012, average labor productivity in Vietnam's manufacturing sector was only about 7 percent of that in China. Eco-responsibility. The numbers seem to support this tactic. As a Premium user you get access to background information and details about the release of this statistic. International Trade, ", 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. As automation and the use of robots expand and more lights-out factories become the norm, demand for lower-skilled labor will wane. . The source did not provide the date of publication. But investment from Asian economies has risen sharply since 2015 as manufacturers have sought new low-cost sites and looked to more deeply penetrate ASEAN markets. Great Wall Motor, for example, began production in Rayong, Thailand, in 2020. How much money does a person working in Factory and Manufacturing make in Thailand? 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. * Thailand's labor force was estimated at 35.5 million in 2006. A commission is a prefixed rate at which someone gets paid for items sold or deals completed while a bonus is in most cases arbitrary and unplanned. The provided figure represents the median compensation that encompasses housing, transportation, and other perks. White label accounts can distribute our data. This page provides values for Labour Costs reported in several countries part of Asia. 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. We have a plan for your needs. The supply chains of some industrial sectors are less likely to undergo major shifts because by nature they are anchored to specific locations, as in the case of mining, agriculture, and oil and gas. 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. Top 10 Highest Paying Careers in Thailand. Advanced users can use our Python/R/Matlab packages. The salaries within the Factory and Manufacturing domain in Thailand exhibit significant discrepancies across various professions. If ASEAN can take full advantage of these trends, we estimate that by 2030 the region can generate up to $600 billion a year in additional manufacturing output, increase annual foreign-direct investment in manufacturing by up to $22 billion, and create up to 140,000 new jobs a We have a plan for your needs. The numbers become more significant if you consider one job title at a time. The proportion of the population aged 65 and up is expected to climb from 13% to 31% in 2060, resulting in a 14.4 million. The online shopping platforms most used by Bangkok consumers are Lazada, Shopee, PowerBuy, and JD Central. They view selfexpression as the new currency in the fashion industry and look for brands that match their personal experience and boost their selfimage. Advanced users can use our Python/R/Matlab packages. Whats more, a new trade pactthe Regional Comprehensive Economic Partnership (RCEP)is expected to significantly accelerate the flow of finished goods, inputs, and investment between Southeast Asia and trade partners such as China, Japan, South Korea, and Australia. Managing Director & Partner; Southeast Asia Lead, Public Sector, Partner & Director, Global Trade & Investment. We also considered barriers to change, such as high capital costs or a lack of alternative sources of supply. Directly accessible data for 170 industries from 150+ countries Professionals working in Factory and Manufacturing in Thailand are likely to observe a salary increase of approximately 8% every 17 months. Example:A graphic designer in the marketing department of a hospital. Exceptions do exist, but generally speaking, the situation of any company is closely related to the economic situation in the country or region. Use Ask Statista Research Service. ASEAN already has a range of well-established manufacturing clusters. The authors thank Holly Sze, Sue Xu, Yu Lin Ong, Joe Lee, Andrew Chua, and Ethan Choi for their contributions to this article. Granted upon achieving an important goal or milestone. 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. See how organizations respond towards the impact of automation and technology on job availability and employment growth in the new normal. to incorporate the statistic into your presentation at any time. 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 Thailand parliament announced the passage of a contentious. The. . Most of the populationabout 50.7%is clustered around Bangkok. (See Exhibit 1.) Companies within thriving industries tend to provide higher and more frequent raises. Statista. Not all compensation increases are reflected directly in the salary. Learn more about how Outsource Asia can help your organization embrace. That is quite an investment.Employees can't expect any salary increases during the study period, assuming they already have a job. The wage hike will be applied to all provinces in January 2013, and will fulfil one of the . A PMI reading above 50 indicates expansion in the manufacturing sector, while a reading below reflects contraction. The estimated FDI is based on the ratio of manufacturing GDP to FDI from 2015 through 2019. The reason is quite simple: it is easier to quantify your value to the company in monetary terms when you participate in revenue generation. The. Salaried employees are usually exempt from overtime as opposed to hourly paid staff. These types of bonuses are given without a reason and usually resemble an appreciation token. Employees that support and facilitate the work of revenue generators. The trend suggests a slow yet continuous increase in pay in 2024 and future years. 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. No matter their starting point, BCG can help. 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. 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. The electronics industry is one of the most impactful industries in the manufacturing sector in Thailand. It is not easy to provide a figure with very little information, so take this range with a grain of salt. Main Statistics Wages Thailand Thailand Wages: Minimum and Average Thailand Wages Data Minimum Av. $278.3 $454.7 $897.7 11.0% 7. . 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.
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