#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Vietnam vs. Thailand, who wins?

## Scaramanga

*Vietnam vs. Thailand, who wins?*


Personally I think Thailand lost everything in the 2006 coup. Since then Thailand has rapidly gone downhill and has to resource to censorship, lies and murder just to keep an illegitimate government in power.

*THAILAND BUSINESS NEWS*

_Vietnams $96 billion economy is far less centrally controlled than last decade, and the country, which boasts one of the youngest workforces in the world, managed to gain membership in the World Trade Organization in 2007. The country last year exported $12.3 billion of goods to the U.S., its biggest overseas market. Foreign direct investment is on the rise and could double, to $15 billion this year according to a May 31, report analysts at Standard Chartered Bank.

This fall, Intel will open a $1 billion chip assembly and test plant near Ho Chi Minh City. Taiwanese laptop PC and LCD screen manufacturer Compal also has a new factory in Vietnam. Arthur Chiao, chairman of the Taiwan Electronics & Electrical Appliances Assn., on June 7 said his group is helping Taiwanese companies find new manufacturing sites in Vietnam in the wake of rising labor costs on the mainland.

Compal Electronics is a Taiwanese original design manufacturer (ODM), handling the production of notebook computers and monitors for a variety of clients around the world, including Acer Inc., Dell, Toshiba, Hewlett-Packard, and Fujitsu Siemens Computers. Compal is famous for producing select models for Dell, Hewlett-Packard and Compaq. Compal has designed and built laptops for all of the major brands as well as custom builders for over 22 years. It is listed in Taiwan Stock Exchange. As of 2004 revenues were $6.32 billion USD, with a total workforce of 16,000. The companys headquarter is in Taipei, (Taiwan), with offices in the Peoples Republic of China, South Korea, the United Kingdom, and the United States. Compals main production facility is in Kunshan, China.

Political tensions in Thailand next door also are leading companies to Vietnam. Calm has returned to the Thai capital after May&apos;s deadly confrontations in Bangkok between anti-government protesters and the military, but it was one of many political outbursts in Thailand over the years

via Is Vietnam Finally Ready for Foreign Investors?  BusinessWeek.

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2008  averaging more than 4% per year  as it recovered from the Asian financial crisis of 1997-98. Thai exports  mostly machinery and electronic components, agricultural commodities, and jewelry  continue to drive the economy, accounting for as much as three-quarters of GDP. The global financial crisis of 2008-09 severely cut Thailands exports, with most sectors experiencing double-digit drops.

Since the 2006 coup, parliament has been battered and belittled. Two elected governments have been overthrown. More than 200 elected legislators have been banned from politics. A new constitution deliberately sets out to diminish parliaments role. The consequences are now clear. The country desperately needs to reinstate parliament as a national forum.

In 2009, the economy contracted about 2.8%. The Thai government is focusing on financing domestic infrastructure projects and stimulus programs to revive the economy, as external trade is still recovering and persistent internal political tension and investment disputes threaten to damage the investment climate.

Thailand is running out of mechanisms for compromise. Various academic groups, business groups, peace advocates and elder statesmen have failed to gain any traction as potential conciliators. By loudly and repeatedly claiming to be defending the monarchy, the die-hard groups have eroded the institutions old role as mediator. There remains only a slim chance for Mr. Abhisit to play a positive role in the emergence of the new political Thailand, rather than being a casualty in the collapse of the old order.

On the other hand Vietnam is a magnet for foreign direct investment. The success of doing business in Vietnam is greatly facilitated by the ability to put through effective corporate structure and financial management system to deal with foreign investment laws, taxation, accounting and foreign exchange issues in Vietnam.

The investment registration process and tax management in Vietnam is decentralized, with the municipal and provincial authorities having significant discretions on how businesses are established and managed from a tax and accounting angle. Having a good local partner, experienced staff and localized professional support would greatly assist in the initial start-up stage.

As an emerging economy, the regulatory landscape in Vietnam is dynamic, characterized by frequent changes in laws and regulations. Very often, the head office finance team is unsure whether the myriads of regulations in Vietnam are fully complied with, and is also troubled by the quality of financial and management reporting by their Vietnamese accountants._

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## paranha

It must be Vietnam - even though I have never been there

In October I've been in Thailand for three years (except that I'm back home for vacation at the moment)

Thailand has declined into something you should avoid in those three years

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## ossierob

Yes Thailand dont seem to fix problems.....just settle the dust each time

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## Rural Surin

Why the comparatives?

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## sabang

Some companies, like Michelin, have so much plant on the ground here that they will deal with the devil they know- hence they are in the process of building a fourth factory. The Toyota's, Honda's & Isuzu's are already here.

That is what is called in the business 'first mover advantage'. Thailand got a 25 year head start over the likes of Vietnam, Cambodia, Laos and even China, thanks to it's pro-western, anti-communist stance.

To see it being overtaken now in leaps and bounds by these still Socialist economies should give every thinking person pause for thought. If you happen to be Thai, it is downright humiliating. Well squandered.

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## Lorenzo

Vietnam is Japan's number one choice in their China + 1 strategy

says it all

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## phomsanuk

Thailands competitor? 
The second country-specific small cap ETF I like covers a state-capitalist Asian nation with a reputation for cheap labor and a history stretching back 5,000 years. That's right, Im talking about Vietnam. 



The Southeast Asian powerhouse has spent its history in the shadow of China, and now it is poised to benefit from Chinas success - and emerge as a global leader in manufacturing. 

As the population of migrant workers in China dwindles, laborers are striking at factories. Workers are now able to command significantly higher wages. Mix in strikes with Beijings new minimum wage rules, and China appears to be losing its place as the worlds factory. But Chinas loss is Vietnam's gain, and represents an immense opportunity for those who invest in Vietnam right now.

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## sabang

^ Why don't you provide a Link to your quotes, so people that are interested can open it and read the whole article?

In Issues, this is a requirement. Not doing so will just lead to your posts being deleted.

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## wefearourdespot

> To see it being overtaken now in leaps and bounds by these still Socialist economies should give every thinking person pause for thought. If you happen to be Thai, it is downright humiliating. Well squandered.


Thailand has 140 billion $ in foreign currency reserves and has problem in keeping the baht low.
Vietnam reserves are esteemed around 14 billion $ but the data is a state secret as they are afraid of speculation targeting their currency to devalue it.
Inflation is 3% in Thailand, 10% in Vietnam.
Thailand has a huge trade balance surplus, Vietnam has a huge trade balance deficit , they even import seafood from Thailand.
I have been in Vietnam just 10 days, and found the people to be way more aggressive and tricksy and stealing than in Thailand.
You never feel confident in Vietnam, you never know if you can take a lady in your hotel room without fear of a police check, ladies will always try to rob you in massage parlours (unless you fold your shorts with your wallet inside and put them under your head during massage).
Add to all this the fact you cannot buy even a condo in Vietnam and you get the picture, an overall more stressful and more expensive place than Thailand.

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## wefearourdespot

Vietnam latest news - Thanh Nien Daily | Vietnam gov&#39;t asked to cut import tax on raw seafood

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## slackula

> ^ Why don't you provide a Link to your quotes, so people that are interested can open it and read the whole article?
> 
> In Issues, this is a requirement. Not doing so will just lead to your posts being deleted.


For whatever reason he is incapable of doing that. It has been asked many times although shockingly his unattributed and highly partisan C&P remarks are allowed to stand. Yeah, I'm shocked too..  :Roll Eyes (Sarcastic):

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## Scandinavian

> Originally Posted by sabang
> 
> 
> To see it being overtaken now in leaps and bounds by these still Socialist economies should give every thinking person pause for thought. If you happen to be Thai, it is downright humiliating. Well squandered.
> 
> 
> Thailand has 140 billion $ in foreign currency reserves and has problem in keeping the baht low.
> Vietnam reserves are esteemed around 14 billion $ but the data is a state secret as they are afraid of speculation targeting their currency to devalue it.
> Inflation is 3% in Thailand, 10% in Vietnam.
> ...


Very true. Was working there for 40 days at a shipyard, going in to Na Trang we were robbed, conned and cheated every day, WAY more than you would be in Thailand. To me, Vietnam is still a shit country, wont be going back there this or next decade.

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## Thaihome

> Originally Posted by sabang
> 
> 
> To see it being overtaken now in leaps and bounds by these still Socialist economies should give every thinking person pause for thought. If you happen to be Thai, it is downright humiliating. Well squandered.
> 
> 
> Thailand has 140 billion $ in foreign currency reserves and has problem in keeping the baht low.
> Vietnam reserves are esteemed around 14 billion $ but the data is a state secret as they are afraid of speculation targeting their currency to devalue it.
> Inflation is 3% in Thailand, 10% in Vietnam.
> ...


Come on now. That cant be true. Thailand has been going downhill for since the 2006 coup, dont you know? 

Everyone knows Vietnam is a much better business environment, just ask anyone that has never done business there, they will tell you. 

Comparing Thailand and Vietnam is ridiculous, they are so far apart on the development curve that it is meaningless.  Maybe in 20 years, assuming Vietnam can get the Army under control, which makes the Thai police look like rank amateurs in the corruption business.
TH

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## Mid

*Manufacturers flee China for  Vietnam*
YUZURU TAKANO THE ASAHI SHIMBUN
2010/06/26


_Takagi Co., a water purification device maker, opened  this factory in a Hanoi suburb in December, choosing Vietnam over  China._ 
(YUZURU TAKANO)

*HANOI*--Japanese companies are shifting production to Vietnam to avoid  the labor strife, rising currency and anti-Japan sentiment that  threaten to hamper business operations in China. 

     Japanese company officials in recent months have frequented the Thang  Long Industrial Park 2 (TLIP2), located 80 kilometers east of central  Hanoi and developed by major Japanese trading house Sumitomo Corp. 

     "Inquiries have suddenly increased in the past two months. Four  companies concluded contracts to set up their factories here, and three  more firms are scheduled to do so by July," said Hiroyoshi Masuoka,  general manager of the TLIP2. 

     After Lehman Brothers collapsed in September 2008, throwing economies  into a tailspin, the popularity of the industrial park plunged. 

     But the global economy has begun to recover, and so has interest in  the park, Masuoka said. 

     That is not the only reason. 

     An executive of a major manufacturer who inspected the TLIP2 on  Tuesday, told Masuoka, "We have anxieties about concentrating our  production in China." 

     Although the company has factories in China, it wants to relocate  some to Vietnam. 

     Many companies started harboring doubts about production in China,  the so-called factory of the world, after labor strikes hit auto parts  factories of Toyota Motor Corp. and Honda Motor Co. 

     Buoyed by the positive results of those strikes, workers around China  are increasingly demanding higher pay and better working conditions. 

     "With predictions of a sharp increase in labor costs and a rise in  the renminbi in China, (Japanese) companies have been looking for sites  for their factories (in Vietnam) since half a year ago," said Hirota  Nakanishi, an investment adviser of the Japan External Trade  Organization's office in Ho Chi Minh City. 

     "As the rise in the renminbi has become a reality, the number of  export-oriented (Japanese) companies shifting their factories to Vietnam  will further increase," he said. 

     According to JETRO, Japan's direct investment in Vietnam was about  $140 million (12.6 billion yen) in 2009. The figure is already $1.1  billion for the first five months of this year. 

     Takagi Co., a water purification device maker based in Kita-Kyushu,  didn't bother setting up a plant in China; it picked Vietnam for its  factory that opened in December last year. 

     "In addition to the cheap labor costs and diligent national character  (in Vietnam), anti-Japan demonstrations in China led us (to choose  Vietnam)," said Mikijiro Takagi, a Takagi general manager. 

     Nikkiso Co., which held an opening ceremony for its aircraft parts  factory in the TLIP2 in January, had a bitter experience in China. 

     The Tokyo-based company was forced to relocate its factory in  Shanghai because of the Chinese government's urban planning. It also had  problems concluding a contract for a joint venture. 

     "There are no such risks in Vietnam," said Osamu Igarashi, president  of Nikkiso's subsidiary in Vietnam.

asahi.com

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