As the number one export, electronics have been crucial to Thailand’s economic success.
But as newer technologies emerge and manufacturers move to its less costly neighbors, the sector’s erosion could have long-term consequences for the economy.
A Reuters report today looks at the “structural competitiveness problem” Thailand will face as neighbors such as Vietnam begin surging.
The decline is raising concerns that Thailand’s economic slowdown is not a temporary problem caused by its political upheaval but a structural one caused by the manufacturing industry’s failure to adapt and the increasing attractiveness of its lower-cost neighbors.
“It’s time for products with high technology but nobody has invested in them here,” said Visnu Limwibul, chairman of the Thai Electrical, Electronics, Telecommunication and Allied Industries Club.
