The Minimum Daily Wage Of Labor Increased By &Nbsp, Resulting In The Increase Of Production Cost Of Shoes And Clothing Enterprises In Thailand.

The government of Thailand will

The food processing industry first appealed to the government to reduce the import tax on raw materials, and subsidize the fuel at the same time. The minimum daily wage of workers was raised to 300 baht, leading to a 40% rise in the salaries of enterprises, which directly impacted annual profits and dividends.

At present, the industrial production in Thailand is mainly distributed in 7 foreign offices. The minimum daily wage of workers has been raised to 300 baht, which has brought a significant impact to the major industries. Therefore, the industries such as iron and steel, canned goods, paper making and so on require the government to help them, first of all, to reduce the import tax.

Since the ruling of yingluck government, the minimum wage has been raised to 300 baht.

The act not only led to the increase of the salaries of the major listed companies, but also caused the pportation costs to rise, so that the government could subsidize the fuel.

In order to alleviate the pressure on enterprises, the government began to reduce the tax rate to 23% this year, ensuring the profit growth of major listed companies.

The food processing industry has a large share of export performance, and the minimum daily wage of workers is raised to 300 baht, forcing enterprises to consider adding part of their expenses to the price of products.

However, as long as the price of the product is raised, the market competitiveness of the product will be reduced, and the export performance will be directly affected.

The government also understands the importance of the food processing industry and indirectly increases the harvest of agricultural products to help businesses reduce the cost of raw materials.

However, due to the adverse effects of climate change, the harvest of Thailand's agricultural products is unstable. At present, the difficulties encountered by the industry are mainly the failure of corn, forcing powerful businesses to plant in neighboring countries.

As the market is developing, Burma attracts large numbers of Thailand investors, including Vietnam, Laos and Kampuchea.

According to a report from the Thailand Development Survey Institute, the minimum daily wage of workers has been raised to 300 baht, leading to a 39.5% rise in personnel costs in small and medium-sized enterprises, resulting in an average increase of 6.4% in total production costs.

The key industries affected include

Meanwhile, data from the National Food Institute predicted that Thailand's food exports will reach 971 billion baht this year, up from 965 billion baht last year.

The realization of this goal relies on the rising demand for Thailand products in the Asia Pacific market and the steady growth of the global economy. Thailand is currently the eighth largest food exporter in the world.

Before the industry, the minimum wage paid to employees is only 80 baht. The government's sharp increase to 300 baht is conducive to promoting domestic consumption capacity, but it also brings pressure to enterprises.