Asia becoming centre of gravity of world wealth, one of the world’s best-known brands of luggage, will reduce the volume of its products made in Europe and China and shift to manufacturers in Thailand and Vietnam. The move is aimed at taking advantage of the Asean Free Trade Agreement, which took effect last Friday, and duty-free trade between Thailand and India.
Ramesh Tainwala, president for greater Asia at Samsonite Asia, said the gap in labour costs between China and other Asian manufacturing countries, such as Thailand and Vietnam, was growing smaller.
“In China, labour is getting more expensive. It is also burdened with higher costs of shipping than Thailand. Thailand also has very highly skilled manpower,” he said.
Tainwala said Samsonite had no plans to set up its own factories.
All of its bags and luggage will be manufactured by producers in particular countries on a subcontract basis.
“We expect to increase our production orders in Thailand and Vietnam by almost 200 per cent and 300 per cent in 2010,” he said.
In Thailand, it will increase its production volume from 50,000 pieces a month at present to 200,000 a month by year-end.
Samsonite now sources ladies’ handbags and wallets from Thai manufacturers and exports them to India and China. This year, it will begin to order travelling luggage from Thailand.
Demand from businesses have increased rapidly over the years in Thailand
A steep fall in exports caused by the global trade slump drove down industrial production and investment in the frst half of 2009. Business and consumer sentiment was further undermined by political tensions. Although there were signs the worst had passed by midyear, the economy is expected to contract by more than was projected in March. Modest growth is seen resuming in 2010. The tempo of recovery will depend in large part on the Government fully implementing two fscal packages, including a new public investment program. Those plans would be at risk if political disruptions recur. The consumer price index is now forecast to decline this year, before low-level infation returns next year.
Volumes of untreated domestic sewage, industrial wastewater and solid hazardous wastes have risen dramatically in recent years. The result is that roughly one third of Thailand’s surface water bodies are considered to be of poor quality. Clearly Thailand needs to focus on more effective enforcement of environmental laws; stronger institutional capacity, both national and local; and increased investments in pollution prevention and control, with private sector participation.
Can the Subscription Economy Save Financial Services?
Going back to the pre-Covid “normal” is not an option for financial services. Fortunately, the rise of the subscription economy points towards frontiers of untapped growth for the sector.
As the world waits for mass vaccination to revive economic activity, general malaise has overtaken the financial services industry (FSI). And things will probably worsen before they get better: US banks are expected to suffer US$318 billion in net loan losses by the end of 2022, according to Deloitte.(more…)
Thai firms tops the world’s sustainability ranking by S&P Global
The Stock Exchange of Thailand revealed that 11 Thai firms have been awarded in Gold Class, the world’s highest ranking by number in sustainability aspect in “The Sustainability Yearbook 2021” conducted by S&P Global.(more…)
Thailand’s Latest Tax Relief Package for Businesses
Thailand’s government has issued its latest tax relief package to assist businesses impacted by the pandemic that includes the reduction of land and building tax by 90 percent for 2021, in addition to extending the filing deadline for personal, value-added, and withholding tax.
Thailand to further ease COVID-19 restrictions
The Cabinet approved to ease the level of control over the country under the COVID-19 situation including relaxing businesses and...
BoI plans more efforts to promote BCG economy
BANGKOK (NNT) – The Board of Investment (BoI) is working with related agencies to rev up promotion of the bio-,...
ASEAN, Canada, UN Women launch 5-year programme to advance Women, Peace and Security Agenda
Jakarta/Ottawa/New York, 24 February 2021 – The Association of Southeast Asian Nations (ASEAN), Canada and UN Women jointly launched today...
Covid-19 Thailand Situation Report
COVID-19 situation in Thailand On 15th February, 143 new cases of laboratory-confirmed COVID-19 were announced by the Ministry of Public...
Market for Alternative Investment (MAI) welcomes reinsurance broker “TQR”
SET News 11/2021 February 16, 2021 mai welcomes reinsurance broker “TQR” on Feb 17 BANGKOK, February 16, 2021 – The...
THAI airways to sell training center building to raise more funding
THAI airways has been hit hard by limited travel due to the COVID-19 pandemic, which comes as they were entered...
Subscribe via Email
Asean4 days ago
India, ASEAN Agree to Review FTA Scope, Address Uneven Market Access
Economics6 days ago
Thailand-China sign deal promoting Thai fruit export
Health2 days ago
200,000 doses of COVID-19 vaccine Distributed to 13 Thai provinces
Tourism5 days ago
Adjustments in Thailand’s tourism industry