BANGKOK, 27 July 2011 -The International Institute for Trade and Development (ITD) said the minimum wage of 300 THB per day will not prompt the relocation of production bases or drive away foreign investors from the South East Asian region.
ITD Executive Director Mr. Weerasak Kosurat said more investments in this region were expected and more so in China for its resources. Thailand continues to offer a strong investment opportunity within the AEC framework; however, it is expected that some of the manufacturers could relocate their production bases to Thailand’s neighboring countries for cheaper labor and possibly to find a new market segment.
However, he added that the minimum wage rise adopted by Pheu Thai Party would not drive investors away because workers in Thailand were cheaper than in some other countries. The only concern for them is the shortage of manpower.