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Although technology manufacturing for brands like Apple and Samsung is known to be produced

in countries like China, in recent years this has changed. The movement to labor and
manufacturing for this industry shifted to southeast Asia in 2013. Moving its manufacturing
plants to Thailand has been very successful for the company’s growth. “The Vietnamese
government has also provided a lot of support for Samsung to operate efficiently over the years,”
said Park Hark Kyu, CFO of Samsung Electronics Group” (Admin, 2024) Although Thailand is
seen as a lower economically developed country it also is know for its skilled work force. The
combination of being in poverty and having high literacy gives companies like Samsung the
opportunity to get cheap and skilled manufacturing. (Leong, 2024)
A large aspect in Samsungs decision to settle its manufacturing in Thailand was their agreements
with the local government, securing Land, Labor, and infrastructure. The availability of raw
materials was extremely important to their production and the easy of travel for export secured
by the collaboration with the government. (Admin, 2024)
Another solidifying factor to Samsung choosing Thailand was their Free Trade Zone in Bangkok,
offering specialty customs procedures and incentives to utilizing he is manufacturing property.
The company’s manufacturing in this location and under this agreement are rewarded with many
perks like 24 hour 7 days a week personal customs agents and are not subject to customs duty.
(Bangkok Free Trade Zone, 2015) Thailand seems very supportive to countries and companies to
utilize their raw materials and labor force for production increasing local jobs and pushing in
more disposable income into their local economy. Their manufacturing relies heavily on
exporting which suffered during Covid-19 due to less demand in global buyers dropping needs
for production. However, the governments support to the manufacturing sector retains their
clients.(Thailand Manufacturing Sector, 2023)

Admin. “A Smart Move: Why Samsung Chose Thai Nguyen for Its Largest Factory?” Le Mont
Group, 10 Apr. 2024, lemont.com.vn/a-smart-move-why-samsung-chose-thai-nguyen-for-
its-largest-factory.html.

“Thailand Manufacturing Sector: An Overview of Opportunities and Growth.” VIS, 22 Sept.


2023, vnvis.com/thailand-manufacturing-sector-an-overview-of-opportunities-and-growth/.

“Bangkok Free Trade Zone (English Version).” YouTube, YouTube, 12 Oct. 2015,
www.youtube.com/watch?v=frrfez-VC1o&ab_channel=PhisitSupasawat.

Leong, Noel. “Why Does the West Invest in the East and South East Asia for Manufacturing
While South America and Africa Has Many People for Cheap Labour?” Quora,
www.quora.com/Why-does-the-West-invest-in-the-East-and-South-East-Asia-for-
manufacturing-while-South-America-and-Africa-has-many-people-for-cheap-labour.
Accessed 6 June 2024.

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