8 Wood Factories in Thailand were Closed in 2024

Thailand is facing a surge in factory closures, primarily in the steel and metal industries. High production costs, including energy, transportation, and interest rates, remain high, are likely the main drivers of the closures. The Federation of Thai Industries (FTI) warns that more closures likely to happen and urging the government to take immediate measures to support businesses.

Illustration image of a factory in Thailand

Over 500 factories were closed between January and May 2024, these included 12 plastic factories, 11 metal factories, and 8 wood processing factories. However, businesses must also adapt and find ways to reduce costs.

Over the past two years, Chinese products with low-priced goods have flooded the market, intensifying competition. Although there have been imposed trade barriers on Chinese goods by the US and the EU, China continues to produce at high levels, and these goods finding their way to enter the Thai market, making it more difficult for Thai businesses to compete.

According to the data in the last 3 years, year 2023 already shows an increase of 60% from 2022. In 2021, total 678 factories were closed, In 2022, total 997 factories closed, and in 2023, total 1,337 factories were closed.

Nawa Chantanasurakon, vice chairman of the FTI, expressed concern that the current economic situation could lead to more business closures, with the trend worsening compared to the past two years. This is due to ongoing trade conflicts between the US, the EU, and China, as well as the ongoing influx of low-cost goods into the ASEAN region.



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