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Thailand were very big in the Hard Disk and Auto space.Massive-Massive exporter of both these products.I remember Apple warning their IPhone deliveries will be hit after Thailand's floods.
Hey, T4P! (I found you a new short name:)Well, just to keep us warm around the fire while we listen to Jennifer's stories about Thailand'd manufacturing news and surprises.
@Jennifer: I have been calling Hospice HH for quite a long time now. 🙂 Today I satrted calling tech4people T4P. They know I always find new names for them if they are long. 😀
Just a reminder: I'll be making a few introductory comments soon. Today, we're lucky to have some folks from the Thailand Board of Investment on the call. I will ask them a few questions about Thailand's electronics industry and the flood recovery. Then we'll open the floor for a broader Q&A, ok?
I was in Thailand a few weeks ago. The Thailand Board of Invesstment invited journalists to tour the country and visit with executives in the electronics industry.
We talked about the floods that hit large parts of central Thailand last year, the impact it had onthe supply chain and how electronics companies have recovered.
Jennifer Baljko has been reporting on the electronics industry supply chain for years and will be chatting with us today on the impact of last year's flooding on the electronics supply chain. She recently visited Thailand on the invitation of the Thai trade board. She will also be introducing a participant from the Thai board during this chat. Please go ahead.
Yes, I will be talking about the flood and the amazing recovery job. First, though, I'm going to ask the BOI to gives us a little information about how big the electronics and automotive industry is in Thailand. These are major makrkets for them
The floods that blanketed the area hit many of the HDD makers and electronics industry pretty hard. What was was the biggest impact in terms of financial number, or supply chain operations?
What struck me most about being in Thailand, was that so many of the conversations with executives talked about the floods as a major event, but also how quickly they were able to move manufacturing and second source supply
Production lines at Western Digital, for example, were shut down for 46 days. All of their equipment was under water, and had to be taken apart piece by piece. One of their key suppliers was down for months. But WD and other companies like Benchmark, Celestica, Seagate, were able to transfer some of the production to other plants
What's also worth noting is that Thailand developing quite a bit of port, rail and road infrastructure. BOI can you speak to that? I think it's a big deal for supply chain professionals, and the port expansion is particularly interesting.
@jenn: earlier you mentioned executives/compnaies being able to move manufacturing and second source supply. Do you mean that OEMs went to alternative sources, or suppliers were able meet demand by tapping capacity elsewhere?
This is a comment more than a question: Kudos to BOI and the electronics compnaies in Thailand for being so open and candid. I read every word of Jenn's stories and I was impressed with the level of information that was shared
Prabhakar – WD said the recovery cost them million and millions of dollars. I had cited an economist in one of my stories abt the total estimated loss. I don't have that number right at my finger tips.
@BOI I picked up on your mentioning better weather data. It got my interest because I once wrote about the use of big data in long term weather predictions and how useful that can prove for businesses — even when it doesn't include potential disasters from flooding.
Ariella- see what ending soon – the China fad? Nope, although I think countries like Thailand and Malaysia offer competitive alternatives. People are getting frustrated with things in China and it is getting more expensive do biz there, but it's still a huge market that can't be ignored.
@Hospice-I disagree.The value of keeping production(for exports) in China is shrinking for most Western manufacturers(especially as they build automated asembly lines back home very easily).
Celestica told us they were considering setting up operations near the Thai border and sending some of their low-end engineering work there to start building skills in that area
@Ariella: hi. Big data and weather sure can help countries affected by natural disasters, they could anticipate -if possible-and be prepared in a more efficent way.
Adeniji – There was a impact on HDD sales, but the industry has mostly recovered faster than expected and many HDD companies reported record sales and profits recently. I'll be covering just that topic for Velocity's ezine, our sister pub very soon. Bolaji can tell you when that will be live.
prabhakar – the offshore trend is always competitive… Thailand is not really only competing with China.. it's competing with Barzil, Costa Rica, and maybe one day even Detroit.
Labour cost shouldnt be the only concern. Cost of material and availability of natural resources are also a concern while making investment in a country. Not to forget the political environment.
@BOI-How expensive or otherwise are Fuel Costs in Thailand today?Both Electricity and Diesel?If you were to compare it the chief competition(China,Laos,Phillipines,Cambodia,etc)?
Adeniji – the chances of another flood of this magnitude, who knows really. This was the first time in 50 years such a flood hit, and there were other issues byond heavy rains
Jenn: Did the price of HDD also impact those earnings? I know that prices increased — not to imply there was price gouging — but the market-driven demand did drive up prices
How is Thialand placed in terms of natural resurces required for electronics production, compared to China which ahs world's one of the largest natural resources
t4p… some car prdtn may come back to the us, but not all of it will. Also the expansion of the Panama Canal could be a huge boon for East Coast/Gulf of Mexico ports
@BOI-How much of the electricity Generated in Thailand is made from Coal,Natural Gas,Hydro and Fuel Oil?[Please give percentages]. Also how much of that is imported? Especially Crude Oil and Natural Gas?
Since Thailand is the world's biggest rice producer as well, hasnt the flood made the land fertile for the coming years making rice a potential earner for Thailand ? (Ignoring the destruction caused by flood to the crops that year)
@BOI: do you see a challenge in that flood memories will fade with time? For example in the US, we don't think about Hurricane Katrina/New Orleans anymore, and I'm not even sure the prevention measures were ever completed…
Barbara – yes HDD prices were impacted — they rose, and surprisingly have stablized at that higher price point. Now that there is industry consolidation happening, analysts don't expect those prices to fall soon
@Prabhakar-You are slightly mistaken.China is now the World's Largest consumer of Energy and almost the Largest Importer.[Crude,Coal,Natural Gas and Uranium]/
When some few years back I visited Thialand as a tourist , I hardly saw any factories as such on our way to various places. Is the electronics industry spread around Bangkok or in the countryside?
Flooding does not really encourage farming like that .It could lead to total destruction of the land even for farming.It could also lead to loss in soil nutirents which may render the land useless.
…like they are building three meter high retaining walls, moving production up to the second floor, checking to see how the VMI hubs worked in a natural disaster
@Prabhakar-China is also the largest importer of Soyabeans.Trouble is you can't eat Rare earths;but you can replace them easily[Japan is doing some great research] & alternative mines outside China[US,UK ,Canada,Australia]
I think its a good sign that government is taking flood prevention measures seriously. There are many countries that dont learn any thing from natural disasters. I am glad Thailand realizes how bad it is for their economy.
@prabhakar: I've never been to Thailand, but normaly you don't see factories in the cities, where is most likely that you go as a tourist. Or you were looking for factories in particular?
.. the thai govt is also working on ways to start placing more factories near the Laos and Myanmar border… where some of the lower-skilled, high-volume production may end up as the more mature companies migrate to lower-volume, higher complexity
@BOI: Thailand did move very fast on prevention measures. I am curious…is the government fairly easy to deal with and that's how things got fast-tracked?
… they are ready to hit the ground running after graduations… previously they did need more training after graduating, but that seems to be less of a problem now
@Anand-I like the US ,Thailand and especially Myanmar on the Energy Issue.Myanmar is so rich in Energy resources it boggles the mind!!! The worst off will be India,China and the Phillipines.
Wale – energy question…no one mentioned any major concerns about problems with energy, or at least non come staright to mind. I will scan a slide presentation I have about that, and put a comment up on the last dispatch I filed from Thailan, ok?
… one of the principles leads at a research facilty told us he was even taking classes in finance so he could speak the business language of the world….
Yes Susan In China many of the suppliers preferred only offline communication in English as they could talk English over phone. They had to take translators' help to trasnlate emails and thgeir replies.
@Jennifer-I think the value of English in the manufacturing space is Heavily Over-rated! You don't need to know English if your only job is to do repitive assembly!
Generally, too, most of the Thai folks we met – senior management, mid-level managers, research – had a good grasp on English…. better than I personally expected…
@prahbakar: It makes sense to me. They have to learn a diifferent alphabet, after all, it's not the same as just learning a language that uses the same alphabet you are used to.
… but what I did see were some impressive research facilities and it seems like there could be a vibrant biz incubator scene, now that companies there plan to stay and grow there.
… like one of the researchers told us about a sensor they are creating to better gauge water depth… a handy thing to have, and something being developed in response to the flood.
The one who wins the War after losing the Battle is the Real Winner! That's what makes Thailand so special.Inspite of getting knocked (further because of the Political issues and then the Flood Issues);Thailand came roaring right back!
BOI- Has Thialand govt installed some kind advanced warning systems for cautioning theindustry about impending floods-storms and such natural disasters?
Susan – I mean I didn't see it… Thailand could very well have a dynamic start-up scene, but I didn't have time this trip to check it out. Next time, I hope 🙂
Anandvy – it's a sensor that can be packaged in multiple ways, and will detect changes in water levels within centimeters… they told us right now the current sensors on the market detetc water level changes within in 50 cms, but in a flood zone, whether your house is flooded or not may be just a couple centimeters
So, let's wind this down: BOI guests, thank you so much for your availability and willingness to type at lightening speeds, and to Jenn for her perspective
anandvy – have to check my notes… think it's almost ready to ship. if you need more info – email me at jenn at jennifer baljko, and I can put you in touch with the research center doing the work.
@Fly In my opinion Thailan is not a big country, so flood like last year was heavily effect the country but that kind of flood may not effect US as a whole if it is happen in some part of US
Listening to some of their supply chain plans and hearing about their expansion plans gives me every reason to believe that Thailand will be a country worth considering, if companies have their eye on SEA
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Hello, hello. Testing the room, and lighting it up.
Hey Susan! Looks like you wanna start a Fire!
Thailand were very big in the Hard Disk and Auto space.Massive-Massive exporter of both these products.I remember Apple warning their IPhone deliveries will be hit after Thailand's floods.
Hey, T4P! (I found you a new short name:)Well, just to keep us warm around the fire while we listen to Jennifer's stories about Thailand'd manufacturing news and surprises.
Hi, everyone! Early birds are already here.
ah yes-that will do susan!
Hello, @HH!
Hi everyone. How's summer treating you?
Susan T4P ( I like that nickname), and Hospice (can we call you HH?) you're always early.
Hello, @Jennifer! 🙂 It's been raining in this norther part of the world all day long. But nice, anyway. What about the south?
hi everyone. I am representative from Thailand Broad of Investment. I am really happy to meet you all here.
Hi people. @Jennifer, summer has been fair enough though here in UK. One thing – highly unpredictable.
Too hot…. my brain is melting. Apologizing now for typos and missed words….
@BOI New York, you welcome.
Hello BOI. Thanks for joining us. Who's the lucky person?
@Jennifer: I have been calling Hospice HH for quite a long time now. 🙂 Today I satrted calling tech4people T4P. They know I always find new names for them if they are long. 😀
Good on you, Susan. Short is better.
@Susan, you done well!
Waiting a few minutes for Bolaji and then we'll get started.
Good Morning Everyone
@BOI: Hello! Welcome to EBNOnline, and thanks a lot for being here with Jennifer and us today. 🙂
hello all
Hi everyone
What a world! Some people busy with works right now, while some still sleeping and just waking up.
2mns to 11a.m
Just a reminder: I'll be making a few introductory comments soon. Today, we're lucky to have some folks from the Thailand Board of Investment on the call. I will ask them a few questions about Thailand's electronics industry and the flood recovery. Then we'll open the floor for a broader Q&A, ok?
@Wale: Hello!
@jbond! hi!
Hello all. We will begin the Live Chat in a few minutes
Welcome Jennifer!
Sounds great Jennifer
@Waqas: hello!
@FlyingScot! Hello!
@Bolaji: Hello!
Hi everyone… thanks again for joining us. Ready?
Hello everyone
Hello everybody Good -noon-evening
Welcome to today's Live Chat with Jennifer Baljko. First a few words of introduction.
I was in Thailand a few weeks ago. The Thailand Board of Invesstment invited journalists to tour the country and visit with executives in the electronics industry.
Hi Susan
Hi, Bolaji
@Jennifer: Yes, it sounds great. 🙂
@Barbara: Hello!
We talked about the floods that hit large parts of central Thailand last year, the impact it had onthe supply chain and how electronics companies have recovered.
@prabhakar: hello!
We also talked about plans they have to continue builing in Thailand, and how the country is evolving its manufacturing strategy.
Hi Susan!
Jennifer Baljko has been reporting on the electronics industry supply chain for years and will be chatting with us today on the impact of last year's flooding on the electronics supply chain. She recently visited Thailand on the invitation of the Thai trade board. She will also be introducing a participant from the Thai board during this chat. Please go ahead.
You can see some of the posts I wrote on EBN, and soon there will be a few other stories in the Velocity ezine.
Please hold all comments and questions until Jennifer has posted her initial comments.
@Jennifer: Tell us about your visit to the Thai Land. NO more sign of the flood there, I hope
I will inform the audience when to chime in with comments and questions. Thank you.
we do have someone from the Thailand BOI on the chat. Can you chime in and say hello and introduce yourself.
hi everyone I (Polapat ) and My boss (Ms. Supisara) ready to chat with you
Yes, I will be talking about the flood and the amazing recovery job. First, though, I'm going to ask the BOI to gives us a little information about how big the electronics and automotive industry is in Thailand. These are major makrkets for them
Just saying hello, I know to hold off on questions.
@Jennifer I did't join the trip to Thailand .. but I also want to know how eas it
Hi Polapat and Supisara. Nice talking to talking with you again.
One of the things that struck me most was just how big the electronics sector is in Thailand. It accounted for about $17 billion in exports in 2011.
I believe the word for welcome in Thai is Sawadeeka! Thank you for joining the conversation.
for the HDD thailand have WD Seagate hitachi and Fujitsu
total export for E&E last year was 32.7 bil $
I stand corrected – the number I cited was for computer and parts, not the whoe E&E exports.
avout auto we produced amost 1.5 million cars last year
How does that compare from the year before?
we are ranked no. 14 in the world
Hello Everyone
The floods that blanketed the area hit many of the HDD makers and electronics industry pretty hard. What was was the biggest impact in terms of financial number, or supply chain operations?
compare to last year we produce less mainly because of the mega flood
@BOI-Who do you see as your Chief competition in the Hard Disk and Auto space Today?
for HDD may be WD and for auto is Honda
Ashish, Please hold the comments for now. Thank you.
What struck me most about being in Thailand, was that so many of the conversations with executives talked about the floods as a major event, but also how quickly they were able to move manufacturing and second source supply
@tech4people I think China
BOI – What do you think was the biggest advantage Thailand had in dealing with the flood? How are the recovery effort tracking now?
we do have implemented plan
Production lines at Western Digital, for example, were shut down for 46 days. All of their equipment was under water, and had to be taken apart piece by piece. One of their key suppliers was down for months. But WD and other companies like Benchmark, Celestica, Seagate, were able to transfer some of the production to other plants
in 3 stages
first the construction of dykes and repair works which is underway
second dredging canals, fixing water sluice gates, and building the Kaem Ling – Monkey's Cheek – water retention systems.
third dredging canals and making sure that sewerage systems are effective in Bangkok and other provinces in the lower central region.
BOI – what are some of the plans you have in mind? What are the top flood preventation projects on your radar screen for this year and next?
What's also worth noting is that Thailand developing quite a bit of port, rail and road infrastructure. BOI can you speak to that? I think it's a big deal for supply chain professionals, and the port expansion is particularly interesting.
we have to have bettter both weather prediction system and draining systm
In just a few minutes, we'll open the floor up for questions. There's a lot of ground to cover. Thanks for your patience.
Also, another important thing to mention….
@jennifer I do agree with you
we do have aplan to find another place to set up a new deep sea port
Thailand is moving away from being known as a high-volume manufacturing company to producing more complex products
Moving away from the flooding, what are the key strengths of Thailand that can help it remain competitive as a manufacturing zone?
Bolaji – to your point.. high tech companies are working with universities to create more focused engineering programs
@jenn: earlier you mentioned executives/compnaies being able to move manufacturing and second source supply. Do you mean that OEMs went to alternative sources, or suppliers were able meet demand by tapping capacity elsewhere?
thailand is the middle of ASEAN and now many many ASEAN countries are more open
WD said they are working with professors to create specific HDD-engineering cirriculum
so the market are there 600 million people of ASEAN
Barbara – both
OEMs and CMs had to tap other suppliers to fill teh gaps, but also worked well were the VMI huns
hubs
Thank you for joining. Please join the conversation everyone.
This is a comment more than a question: Kudos to BOI and the electronics compnaies in Thailand for being so open and candid. I read every word of Jenn's stories and I was impressed with the level of information that was shared
in terms of the revenues earned how does the Thai electronics industry fare with the tourism which has been the main stay for Thialand for many years
Companies said hey were able to move inventory — albeit inventory was only at about 2 weeks in some cases — and deliver to other manufacturing sites
Thanks, @Bolaji.
we also have many suppliers in many sector to support investment in Thailand
@jenn and BOI: of the companies that moved to alternative sources–is this business coming back?
@BOI-Are you sure China is your biggest competition?Are'nt wages in China higher than in Thailand today?
BOI – I'll let you answer the tourism vs tech question
Both seem super important to me….
How much can be called as a monetary loss due to the floods?
Yes, wages may be higher in China, but the “everyone wants to be in China” fad hasn't yet ended.
@Jennifer do you see it ending soon?
How important is the Emerging Competition from the Phillipines,Cambodia and Laos?
Prabhakar – WD said the recovery cost them million and millions of dollars. I had cited an economist in one of my stories abt the total estimated loss. I don't have that number right at my finger tips.
@BOI I picked up on your mentioning better weather data. It got my interest because I once wrote about the use of big data in long term weather predictions and how useful that can prove for businesses — even when it doesn't include potential disasters from flooding.
@BOI
What is the percentage decrease in production of HDD as a result of the flood disaster
@T4P: You may be correct, but chna labour market is still apealing to most western companies
we didnt look China as the competitor but we can work together as ASEAN+6
@Jennifer: Do you mean tourism vs. tech as ways of exports or something else?
we produce the the good an ser vice that match for our country
Ok Jennifer. I will find out from your older blogs
Ariella- see what ending soon – the China fad? Nope, although I think countries like Thailand and Malaysia offer competitive alternatives. People are getting frustrated with things in China and it is getting more expensive do biz there, but it's still a huge market that can't be ignored.
Do you see HDD -education curriculum making a different to Thailand HDD market in future?
@Jennifer yes, that's what I meant. Thanks for responding.
@BOI: You are not looking at just one asean country. That's a very smart strategy
As I know some part of China thelabor cost is going up too
@BOI
I there is a huge setback in the production of HDD, What effect do you think this will have on Notebook
By torurism Vs tech I want to compare the dependancy of the nation
T4P – interesting that you mention Laos, Philippines and other SEA countries. They are very much on people's radar screens
@Hospice-I disagree.The value of keeping production(for exports) in China is shrinking for most Western manufacturers(especially as they build automated asembly lines back home very easily).
Celestica told us they were considering setting up operations near the Thai border and sending some of their low-end engineering work there to start building skills in that area
I also see our costs in China increasig now.
@Hospice_ Houngbo thank you and now we try to like this all countries together with trasportation system
Question to anyone: isn't the industry moving away from HDD and to chip-based storage? If so, does that signal a change for Thailand?
I think many companies in Thailand have production base for not only domestic market but also for export
will the trend of back to on-shoringback to US, affect Thialand also alongwith China
@Ariella: hi. Big data and weather sure can help countries affected by natural disasters, they could anticipate -if possible-and be prepared in a more efficent way.
but for China the investor aim for huge domestic market
Adeniji – There was a impact on HDD sales, but the industry has mostly recovered faster than expected and many HDD companies reported record sales and profits recently. I'll be covering just that topic for Velocity's ezine, our sister pub very soon. Bolaji can tell you when that will be live.
@T4P: You have a point, but not every manufacturer wants to withdraw from China, right?
@Barbara-Not yet.We are maybe 35% through that transistion.
How high is the possibility of Thailand experiencing another flood and how well are you prepare for it?
@T4P: thanks!
@Flyingscot, increase in cost is very predictable and also think Thailand would become stronger than China later in the future. What do you think?
@BIO: That's all good!
prabhakar – the offshore trend is always competitive… Thailand is not really only competing with China.. it's competing with Barzil, Costa Rica, and maybe one day even Detroit.
thanks Jennifer
for another flood we did expect and the mega flood before last year happened 10 year ago
Labour cost shouldnt be the only concern. Cost of material and availability of natural resources are also a concern while making investment in a country. Not to forget the political environment.
@Susan Yes, the more advance notice one has, the better one can prepare to avert catastrophe.
@BOI-How expensive or otherwise are Fuel Costs in Thailand today?Both Electricity and Diesel?If you were to compare it the chief competition(China,Laos,Phillipines,Cambodia,etc)?
Sure HDDs are going to be replaced by Solid state storage in many platforms in my opinion
@prabhakar: yes, me too. Thailand as a tech hub as mentioned was a nice surprise. I always thought its main source was tourism
@Adeniji, thanks for the question. Though, its very uncertain as regards weather and natural disasters.
Adeniji – the chances of another flood of this magnitude, who knows really. This was the first time in 50 years such a flood hit, and there were other issues byond heavy rains
flooding depend on the worldclimate change also
@wale.. Thailand OK for prodn plants but I see China moving futher up the food chain now.
Jenn: Did the price of HDD also impact those earnings? I know that prices increased — not to imply there was price gouging — but the market-driven demand did drive up prices
Most companies we spoke with saw the flod as a wake up call
@Jennifer-I dont think so.How do you expect cars made in Thailand to be exported all the way to the US?Especially if Fuel costs do keep rising!
They are now aggressive implementing emergency management plans or re-evaluating what worked and what didn't
@tech4people flankly answer both are going up but we try to move to the alternative energy
50 years!!, thanks Jennifer.
How is Thialand placed in terms of natural resurces required for electronics production, compared to China which ahs world's one of the largest natural resources
@Jennifer, any measure inplace to curb damage if not preventing near future?
t4p… some car prdtn may come back to the us, but not all of it will. Also the expansion of the Panama Canal could be a huge boon for East Coast/Gulf of Mexico ports
@BOI-How much of the electricity Generated in Thailand is made from Coal,Natural Gas,Hydro and Fuel Oil?[Please give percentages]. Also how much of that is imported? Especially Crude Oil and Natural Gas?
Since Thailand is the world's biggest rice producer as well, hasnt the flood made the land fertile for the coming years making rice a potential earner for Thailand ? (Ignoring the destruction caused by flood to the crops that year)
@tech4people car manufacturing have there regional production base, so car from Thailand might not sell in US market
@BOI: do you see a challenge in that flood memories will fade with time? For example in the US, we don't think about Hurricane Katrina/New Orleans anymore, and I'm not even sure the prevention measures were ever completed…
Barbara – yes HDD prices were impacted — they rose, and surprisingly have stablized at that higher price point. Now that there is industry consolidation happening, analysts don't expect those prices to fall soon
@Prabhakar-You are slightly mistaken.China is now the World's Largest consumer of Energy and almost the Largest Importer.[Crude,Coal,Natural Gas and Uranium]/
When some few years back I visited Thialand as a tourist , I hardly saw any factories as such on our way to various places. Is the electronics industry spread around Bangkok or in the countryside?
@WaqasAltaf: Flooding is never a good thing
@BOI: Do can manufacturing companies sell to Europe?
Wale – like the BOI said, the govt is working on various flood-prevention project. But also companies are taking preventative measures too…
@WaqasAltaf most of them from Hydro
t4p – But China has huge natural resources of rare earth minerals
@WaqasAltaf,
Flooding does not really encourage farming like that .It could lead to total destruction of the land even for farming.It could also lead to loss in soil nutirents which may render the land useless.
…like they are building three meter high retaining walls, moving production up to the second floor, checking to see how the VMI hubs worked in a natural disaster
@Barbara now we completed flood prevention measure phrase 1
Susan – I believe most of the Thai companies are selling to Europe. Most of the companies based there are multinationals with a big global reach.
@Prabhakar-China is also the largest importer of Soyabeans.Trouble is you can't eat Rare earths;but you can replace them easily[Japan is doing some great research] & alternative mines outside China[US,UK ,Canada,Australia]
I wonder what the flood prevention is costing the government and how this will be paid for in company tax?
How is the power grid situation being taken care off – the contigency measures when the floods may force down some of the power plants?
@praharkar You are correct. the industrial zone are located in many province of Thailand
@ BOI
I think its a good sign that government is taking flood prevention measures seriously. There are many countries that dont learn any thing from natural disasters. I am glad Thailand realizes how bad it is for their economy.
Prabhakar – there are a lot of factories around Ayuthaya, and along the eastern coast, near the port….
@prabhakar: I've never been to Thailand, but normaly you don't see factories in the cities, where is most likely that you go as a tourist. Or you were looking for factories in particular?
@prabhakar good question!
.. the thai govt is also working on ways to start placing more factories near the Laos and Myanmar border… where some of the lower-skilled, high-volume production may end up as the more mature companies migrate to lower-volume, higher complexity
@T4P: The question is what will China do to maintain its economic growth when foreign companies would depart from the country?
BOI – Thanks.
Did the floods affect only Bangkok and the resulatnat supply chain operations or they also affected the countryside plants?
@Jennifer: Thanks!
@BOI,
Pls what will you rate Thailand anomg manufacturing zone?
@Hospice-Beats ME! I guess u shud ask them!!!
The floods didn't really hit centrl bangkok.. most people in the many tourist parts of town told me the floods were abt 4 kilometrs from city center
@Waq yes we all suffer but we need to move forward very fast and you can see Honda now running their production as noral
I like Thailand has some of the best infrastructure in the world
Just scanning the questions… any that we haven't answered yet
That's a good idea, moving the factories that are in the zone of more risk makes sense, @Jennifer
Especially Soft Infrastructure
People are very good and learning all the latest technologies
anadvy – yes on the adoption of skills…
.. most executives said that the universities have come a long way from where they were 10-15 years ago when they first opened opeartions there….
@BOI, is there any concern over emergy/raw materials for HDD in Thailand
@Adeniji It depend on want sector you want to invest there are different supplier in ddifferent zone
@BOI: Thailand did move very fast on prevention measures. I am curious…is the government fairly easy to deal with and that's how things got fast-tracked?
… the schools are making them more “company-ready”, meaning..
@Ashish, which countries are best suited there for manufacturing ?
@Jennifer-So u would say that The Thais are not ready to give up their hard-earned manufacturing success in a Hurry.Huh?
@wale so far no
How is the language barrier taken care of by the Thia idustry in communicating with the outside English world.
I had faced a lot of difficulties while trying to source components from China in terms of verbal communication
… they are ready to hit the ground running after graduations… previously they did need more training after graduating, but that seems to be less of a problem now
@T4P: Why should they?
@prabhakar, I agree with you. English is major concern for them.
@Barbara we set up special team included all government agency for flood recoverry so that the answer
I am sure they are taking steps to improve their communication skills, if you remember China too faced the same problem couple of years back..
@Anand-I like the US ,Thailand and especially Myanmar on the Energy Issue.Myanmar is so rich in Energy resources it boggles the mind!!! The worst off will be India,China and the Phillipines.
Wale – energy question…no one mentioned any major concerns about problems with energy, or at least non come staright to mind. I will scan a slide presentation I have about that, and put a comment up on the last dispatch I filed from Thailan, ok?
@prahbakar: At company level you mean?
And, yes, English is a concern, but…
@BOI: thanks!
@PD, i think communication barrier in today's technology is being taking care of bit -by-bit.
@Susan-Nope,it was a question asked in Jest!
people are doing what they can to become more English-ready…
@Jen: Agreed!
… one of the principles leads at a research facilty told us he was even taking classes in finance so he could speak the business language of the world….
Yes Susan In China many of the suppliers preferred only offline communication in English as they could talk English over phone. They had to take translators' help to trasnlate emails and thgeir replies.
@Jennifer-I think the value of English in the manufacturing space is Heavily Over-rated! You don't need to know English if your only job is to do repitive assembly!
@Jennifer a smart move on his part
@T4P: I see!
Generally, too, most of the Thai folks we met – senior management, mid-level managers, research – had a good grasp on English…. better than I personally expected…
I mean they could not talk English over phone
@Jennifer, am not sure i asked question about energy… did i?
t4p – agreed… most of the plant workers will never have to communicate in English… they understand how to do they're job and they do it …
Jennifer that is a good sign. It helps in making delas faster
fomr my own experience i never had any language problem when i bring some investor to visit some Thai factories
Is it that they don,t want to learn English at all or what?
@Jennifer, yes Thai english is pretty good compared to chinese…
Wale – i thought I saw a question from you… but like I said my brain is melting from the heat wave in Barcelona 😉
@prahbakar: It makes sense to me. They have to learn a diifferent alphabet, after all, it's not the same as just learning a language that uses the same alphabet you are used to.
@Jennifer I know that feeling! It's been a hot summer in NY!
@Adenji, its all about culture…i guess english is not given preference..
I mean they can communicate with the foreign investor
@Adenji-No,its just that it isnt as big an issue as its made out to be.
Many Thai speak better English than Wasterners 😉
can you imagine even Japanese investor who use slighty english also succeed in doing business inThailand
English is important, but it's not the end all be all … honestly, Thai are pretty savvy entrepreneurs in their own right
BOI – That is good ! and essential too
@Jennifer, I agree with you. Thai english is far better than chinese.
@FlyingScot-WoW! Now thats a massive compliment!! I am sure the Thais will love u for it!
@Tirlapur-U mean Chin-English?
@jenn: good point. What is the start-up picture in Thailand in tech>
@Jennifer, what initiative government is taking to improve the infrastructure, including empowering thais with good english communication skills.
When you are on the other side of the table you have to learn the -language, culture and what not – to clinch the deals in your favor
we know the situation and we try to teach English more in our education system
@T4P: Chin-English?
So Thailand has incredible low unemployment rate, and they are business-savvy, especially those who are creating small mom and pop businesses
@Jennifer, oh sorry about the heatwave. I posted question regarding emerging & raw material. BOI already answered that though.
@prabhakar, so true. Language shouldnt be barrier for any business.
Barbara- good question… sad to say I don't have a good sense of the high-tech start up scene…..
… but what I did see were some impressive research facilities and it seems like there could be a vibrant biz incubator scene, now that companies there plan to stay and grow there.
@Jenn–no problem–if I did, I wouldn't need to ask the question 🙂
… like one of the researchers told us about a sensor they are creating to better gauge water depth… a handy thing to have, and something being developed in response to the flood.
@Jennifer: What you mean is that there is no tech startup scene or that you didn't sense it/didn't see it?
The one who wins the War after losing the Battle is the Real Winner! That's what makes Thailand so special.Inspite of getting knocked (further because of the Political issues and then the Flood Issues);Thailand came roaring right back!
Awesome!
for the hitech we set up national science and technology development agency to promote technology base in Thailand
Everyone – just a ew more minutes. Any last thoughts?
BOI- Has Thialand govt installed some kind advanced warning systems for cautioning theindustry about impending floods-storms and such natural disasters?
In the last few minutes, I'd like to invite our guests at BOI to add any last-minute comments on the topic of manufacturing in Thailand…?
@Jennifer and I'm sure it has other applications for which it can be marketed.
@Jennifer, what exactly is that technology, to measure the waterl level?
Susan – I mean I didn't see it… Thailand could very well have a dynamic start-up scene, but I didn't have time this trip to check it out. Next time, I hope 🙂
I agree, Language should not be barrier in Business.
@Jennifer, why can't Thai setup the infrastrcture at higher altitude so that flooding doesnt affect the industry ?
You have been great @Jen, @BOI!
@rabhakar we do have the National Disaster Warning Center after the flood
Its surprising that now Severe drought looms in Thailand
Anandvy – it's a sensor that can be packaged in multiple ways, and will detect changes in water levels within centimeters… they told us right now the current sensors on the market detetc water level changes within in 50 cms, but in a flood zone, whether your house is flooded or not may be just a couple centimeters
@Jennifer @BOI: Thanks for bringing this new view of Thailand.
BOI _ Thanks !
The weather is weird in that it goes for flood to drought.
thanks Jennifer
tiriapur – right – flood or drought… not much different than Northern California, huh – from el niño to water restrictions…
@Jennifer, thanks for the reply. Is this technolgoy already implemented or still under research ?
@TIRLAPUR=Setting things up at higher altitudes brings its own sets of problems-Landslides Anyone?Power and INfra is also usually an issue.
Thanks, Jennifer and BOI
BOI – Thanks so much for joining us on this chat.
Scotland goes from flood to flood 😉
Thanks everyone.
@Jennifer: yay! Yes, maybe it's a good idea to check the startup scene 🙂
@tech, true but atleast floods which is affecting the GDP of the nation wont have impact on the industry.
@BOI-Thank you for your information.Learnt a lot!
So, let's wind this down: BOI guests, thank you so much for your availability and willingness to type at lightening speeds, and to Jenn for her perspective
Jenn, Any closing remarks?
@Flyingsot, flood to flood ? Is it floods all around the year in scotland ?
Thanks BOI and Jeniffer for this quite interactive and informative session
anandvy – have to check my notes… think it's almost ready to ship. if you need more info – email me at jenn at jennifer baljko, and I can put you in touch with the research center doing the work.
Closing remarks….
@Fly In my opinion Thailan is not a big country, so flood like last year was heavily effect the country but that kind of flood may not effect US as a whole if it is happen in some part of US
I was expecting to see companies still struggling from the massive flood last year. I was happily surprised they weren't
Bye Susan
@Jennifer, sure I will get in touch with you. Thank you.
Thank you Jennifer for your time and thanks to all our readers. Please join us for another Live Chat soon.
I am wondering if we can build somemodel similar to this one. We too face lot of flooding problems in our region.
bye all
Thank you everyone to join this chat. I am looking forward to see you again
Thanks Bolaji, Jennifer, Very informative chat.
Listening to some of their supply chain plans and hearing about their expansion plans gives me every reason to believe that Thailand will be a country worth considering, if companies have their eye on SEA
bye @prahbakar!
Looking forward to the next chat. Thank you everyone… lively discussion as always.
Bye!
Bye everybody and have a good day
Thanks everyone. Its was very informative. Never thought so much progress is happening in Thailand.
@Jennifer-SEA?
Bye, @Jennifer. Stay away from the heat.
I really hope Thailand government will take actions so that thailand will not face the flooding problems in future.
few year ago Vietnam was more open… Now this year myanmar is more open and some investor are know that opportunities are there so they go early.
What is SEA Jennifer ?
@tirlapur-Thailand is an awesome country-Totally Capitalist as well as in touch wid its roots!
South East Asia
Thanks, @BOI, for being here today.
@tech, I am planning to visit Thailand soon,
See you next time, everyone!
@Susan, bye. See you in next chat 🙂
Bye all.