ส.อ.ท. เร่งรัฐปรับโครงสร้างต้นทุนการผลิต รักษาขีดความสามารถการแข่งขันภาคอุตสาหกรรมFTI Urges Government to Restructure Production Costs to Maintain Industrial Competitiveness

On Thursday, March 28, 2024, Mr. Montree Mahapruekphong, Vice President of the Federation of Thai Industries (FTI), announced the results of the FTI CEO Poll, Round 39, conducted in March 2024 under the topic “Perspective on the Competitiveness of the Thai Industry.” It was found that FTI executives assessed the overall competitiveness of the Thai industry in nine average factors at a “moderate level.” Amid the global economic volatility and the fragile state of the Thai economy still in recovery, the industrial sector must adapt to business operations under factors impacting competitiveness, such as outdated regulations that hinder business operation, continuously rising production costs, issues with labor productivity and labor shortages, limitations in accessing technology and innovation, trade regulations that are obstacles, market flooding, corruption issues, and ongoing economic pressures from household debt.
Given the factors affecting the industrial competitiveness, FTI executives therefore urged the government to accelerate the enhancement of the entire industrial infrastructure within one year, particularly in improving the overall production cost structure so that the private sector can compete, reforming laws and regulations to facilitate business operations or Ease of Doing Business, as well as developing systems and measures to prevent corruption in agencies responsible for granting approvals, which is considered a significant issue hindering Thailand's competitiveness in the past.
Additionally, FTI executives suggested that industrial operators continuously develop their organizations to enhance business efficiency and strengthen competitiveness, such as using technology and innovation to reduce production costs and enhance efficiency, as well as emphasizing environmental considerations that are becoming a global trend, upgrading product quality to meet standards and developing products to respond to market demands, adjusting marketing strategies to align with the situation, and developing and upgrading labor skills (Upskill, Reskill, New skill), among others.

The survey, which included 250 FTI executives covering 46 industrial groups and 76 provincial industry councils, summarized the results of the FTI CEO Poll, Round 39, in three questions as follows:

1. What is the current level of competitiveness of the Thai industrial sector?
The assessment of the competitiveness of the industrial sector / Score
1) Ease of Doing Business and compliance with laws 3.05
2) Production and operation costs such as raw materials, energy, wages, finance, logistics, etc. 2.88
3) Labor productivity and workforce readiness for industrial demand 2.96
4) Readiness for technology development, innovation, and promotion of R&D 2.98
5) Promotion and attraction of domestic investment, including FDI, TDI, and SMEs 3.07
6) Trade, exports, and competitiveness in international markets 3.00
7) Adaptability of the industrial sector towards sustainable development (SDGs) and Net Zero 2.95
8) Infrastructure investment supporting the industrial sector such as logistics, digital, etc. 3.22
9) Economic potential of the country such as GDP, inflation, government policies, etc. 2.90
Overall average for the 9 topics 3.00

2. What strategies does the industrial sector plan to adopt to remain competitive under current circumstances? (Multiple choices)
Rank 1: Implementing technology and innovation in the production process to 82.8%
Reduce production costs, increase efficiency, and emphasize environmental considerations.
Rank 2: Upgrading product quality to standards and developing products 72.4%
to meet market demands.
Rank 3: Developing and upgrading labor skills (Upskill, Reskill, New skill) 62.0%
Rank 4: Adjusting marketing strategies, developing brand products, and expanding international markets 57.2%
and building collaborative networks in business operations.
Rank 5: Restructuring organizations and processes to 56.0%
to ensure efficient operation.

3. What actions does the industrial sector expect the government to expedite within one year to enhance Thailand's competitiveness? (Multiple choices)
Rank 1: Overseeing the overall production cost structure such as energy prices 78.8%
raw material prices, logistics, etc.
Rank 2: Reforming laws and regulations to promote Ease of Doing Business 67.2%
and economic growth.
Rank 3: Developing systems and measures to prevent corruption 62.4%
in agencies responsible for granting approvals.
Rank 4: Promoting technology and innovation transfer in product development 61.2%
services and production processes, as well as encouraging investment in targeted technologies and industries.
Rank 5: Promoting labor productivity enhancement and developing skilled labor 58.0%
to meet industrial demands.

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