Tuesday, September 25, 2012

Thai trade show set for Burma

Tuesday, 25 September 2012 13:15 Mizzima News
Thai products will be displayed at the Myanmar Convention Center (MCC) on Oct. 3-7 aimed at attracting deals between customers and manufacturers, exhibition officials said on Monday.

Jointly organized by World Trade Products Company and Tun Myanmar International Company, more than 100 booths will display Thai-made products related to children's products, health and beauty, food and beverages, household ware, footwear, steel and other products.

According to official statistics, Thailand's trade with Burma hit US$ 1.24 billion in the first four months (April-July) of fiscal year 2012-13.

Of the total during this period, Thailand's exports to Burma reached over $207.04 million while Thailand's imports from Burma reached $1.033 million.

Thailand is ranked second in Burma’s foreign investment line-up with $9.568 billion dollars in 61 projects as of July 2012.

Meanwhile, many Thai companies are planning to set up operations in Burma.

Mizzima reported in March that some of Thailand’s top garment companies would move their operations to Burma in the coming year.

At least six leading garment manufacturers plan to set up shop to take advantage of lower wages by the second half of the year. The companies would hire up to 3,000 workers, officials said. More than one dozen of Thailand’s largest garment manufacturers have moved to neighboring countries, which offer a cheaper labour force.

The companies would start operations by investing about US$ 10 million in each plant for a total of $60 million, said reports.

Thailand is already Burma’s second largest investor, following China. It is investing heavily in the oil and natural gas sector, and is expected to also take advantage of Burma’s cheaper labour force and its close proximity.

Burma's labour costs are one-third lower than Thailand's, officials said.

Thailand currently has a shortage of labour and depends heavily on Burmese migrant labour. A plan to raise Thailand’s minimum wage to about $10 a day also has encouraged the move.

Last year, a number of Thai garment producers moved to Cambodia, Vietnam and Laos.

Leave a Reply