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Thailand and Vietnam Fa Li, China’s household electrical appliance production capacity to face challenges

    Recently, Thailand’s Kasikorn Research Center, said the forecast released by signs of economic recovery become increasingly evident and significant rebound in consumer confidence, positive promotion of domestic appliance market in Thailand next year is expected to achieve positive growth, an increase of range of about between 4.0% -6.6% , the overall market size will reach about 83 billion -851 billion baht.

    The report said, with the desire of consumers to purchase an enhanced, large TVs, home theater mix as well as the high-end white goods such as household electrical appliances in Thailand will become the next hot commodity markets. However, due to the impact of zero tariff next year’s Association of Southeast Asian Nations, home appliance retail price competition will become fiercer. On the other hand, as China’s coastal manufacturing labor, and other associated costs, such as home appliance giants Japan and South Korea from overseas production capacity to accelerate the transfer of China’s inland areas, while the acceleration is greater in India, Thailand and other low-labor-cost regions tariff shift .

    Statistics show that Samsung Electronics has expanded its overseas production transferred to the inverter air conditioner factory in Thailand, the company is Thailand’s eastern Chonburi Sriracha production base of inverter air conditioner production line has been in volume production. The LG Electronics has begun production in Thailand, a new generation of LED LCD TV products.

    Meanwhile, the Japanese consumer electronics giant white goods such as production capacity to accelerate the transfer of momentum to Thailand is also quite obvious. October 10 of this year, Managing Director of Toshiba Corporation, Japan to accept Thai media that will continue to expand investment in Thailand to further expand the production capacity in Thailand to local factories. Daikin Industries, Japan’s overseas factories, about half of the capacity contribution from the Thai factory, even more than its factory in Shanghai, China need more capacity. Japan’s Sharp Corp. as early as 2007 that in Thailand, set up a new design center in white goods, now the Center has assumed a Sharp product design and development for the Asian region most tasks.

    By Thailand’s domestic appliance market, the impact of warming, Japan and South Korea consumer electronics giant were enhanced to varying degrees, the Thai market sales. Among them, the first half of Matsushita’s sales in Thailand, which reached a record 8.3 billion baht, including audio-visual, white goods products have reached double-digit growth over same period last year.

    Data showed that from January to October, Thailand’s total exports to China fell 13.27 percent of the cases, home appliances and accessories while exports increased by 12.84% year on year, although somewhat slower than in 2008, but the first 10 months of total exports still reached 263.1 million U.S. dollars (276.2 million U.S. dollars throughout the year in 2008) new high; the same period, optical lens, telephone fax machine communications equipment and accessories, refrigerator compressor, respectively year on year growth rate reached 26.26%, 106.36%, 14.71%, exceed the overall average.

    On the other hand, 1-September period, Thailand imported from China, the total amount of household appliances and accessories fell 17.64 percent, down to about 1.2 billion U.S. dollars; computers and accessories imports fell 6.98 percent, down to 2.002 billion U.S. dollars. Integrated circuits, semiconductors, printed circuit boards were down 9.26%, 13.27%, 10.77%, respectively, reduced to 208 million U.S. dollars, 089 million U.S. dollars and 140 million U.S. dollars.

    While China and Thailand in a white household appliances and digital home appliance industries disparity between the balance of power, but in fact, at present, Thailand has become Asia’s second-largest after China’s white goods producer. Together with India, Vietnam, Indonesia, the Philippines, New Zealand, Southeast Asia and Oceania regional white goods, small household electrical appliances in 2008′s total production capacity has been accounted for 7.2% of the global total as high, and is still showing rising trend.

    In addition to giants Japan and South Korea, Thailand as an important emerging market and increase market development and productive investment, the Vietnam also become areas of concern. Although this year has made a Sony CRT plants shut down in Vietnam, the Vietnamese market, Toshiba’s withdrawal from the event, but it’s only in the Japanese home appliance manufacturing giants overseas EMS (commissioned processing) took place against the backdrop of accelerating the individual cases. In fact, giants Japan and South Korea, Thailand, Vietnam, China, white goods and audio-visual digital home appliances and capacity investments of the major trend of warming is not a fundamental change.

   ”In the meantime, China’s Haier, TCL, Midea, Gree and other consumer electronics giant has also increased in recent years in Thailand, Vietnam, plant investment, rising productivity. However, relative to the direction of change in Japan and South Korea in terms of foreign investments, ‘ going out ‘in Chinese home appliance giant in terms of investment scale, or gaps in the market development efforts are obvious.

    Finally, the source said: “No matter how the time has come to be wary giants Japan and South Korea to Thailand, Vietnam and other Southeast Asian neighbors made to speed up the time of the transfer. Especially for Anhui, Jiangxi, Hunan and other industries with a commitment to undertake the transfer of the inland provinces, as well as the preparing large-scale ‘going out’ in terms of China’s home appliance manufacturers, it is particularly important. ”

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