The rising labour cost, the ageing population, the political uncertainties, along with growing competition for foreign direct investments has left Thailand licking it wounds in the race for attracting investors to invest in Thailand.
Thailand, one of the few countries that had been the king of attracting FDI into the country over the past few decades, has started to lose its crown of being the top FDI recipient to the likes of the newcomer โ Vietnam.
But despite the plans to promote these sectors, very little investments have flowed into the country. Lee Ju Ye says that over the past few years the FDI flows have weakened, down from the peak in the early s. However, slowing demand for personal computers and rising competition from solid-state drives have resulted in a steady decline in HDD production since Total population is expected to peak in This has prompted a shortage of labour in the manufacturing and service sectors.
Thailand faces a shortage of around , foreign workers in manufacturing and services sectors, after more than , workers left during the pandemic. Only about 20, foreign workers have returned this year under bilateral contracts between Thailand and some ASEAN countries. Thailand currently has around 2.
The government is easing rules for migrant workers, allowing Laos, Myanmar, Vietnam, and Cambodia nationalities who are working illegally in Thailand to register and shift into the formal system. The government has also extended the expiring work permits for about 1.
