In the first seven months of 2024, 667 factories ceased operations, while 1,260 new factories began operations. — Reuters
BANGKOK: The Thai industrial sector has demonstrated resilience over the past five years, with new factory openings outpacing closures, according to data released by the Department of Industrial Works.
Julapong Taweesri, the department’s director-general, revealed on Monday that an average of 1,254 factories have closed annually over the past five years.
However, this has been offset by an average of 2,360 new factories opening or receiving licences each year, representing a replacement ratio of 53%.
The ratio of factory closures to openings has fluctuated significantly year-on-year. From 2019 to 2023, the ratios were 69%, 36%, 28%, 52%, and 84% respectively.
In the first seven months of 2024, 667 factories ceased operations. During the same period, 1,260 new factories began operations, maintaining a ratio of 54%, closely aligned with the five-year average.
Despite the closures, the industrial sector has seen a net positive impact.
After accounting for the factories that closed between January and July, the sector still experienced an increase in investment of 167.69 billion baht and saw the creation of 25,663 new jobs.
“These figures demonstrate the ongoing dynamism of Thailand’s industrial sector. While we are seeing a significant number of factory closures, it’s encouraging to note that new establishments are more than making up for these losses, both in terms of investment and employment,” Julapong said. — The Nation/ANN
