Image Credit- www.scbeic.com

The Investors have set their eyes on seriously looking at Thailand as the U.S- China trade war ramps up, as reports to the President and CEO of U.S- ASEAN Business Council, Alexander Feldman. The Vietnam has habitually been Cited as one of the largest benefits in the trade war as companies shift their production out of China to avoid tariffs. The Vietnam’s labor market is tightening, and businesses are now looking to move manufacturing into Other Asian Countries as an alternative and that includes Thailand.

The US- China trade war, which has lasted over a year, has seen both countries impose duties on billions of dollars worth of imports from each other. After announcing more tariffs on Beijing, U.S President Donald Trump ordered American companies to appropriately start looking for an alternative to China. The three name brand companies are already moving people from Thailand to China. He did not name them. Those three companies are moving divisions, but you know, I think we are looking at the tens of millions, hundreds of millions, may be more.

The U.S President Donald Trump started imposing increased tariffs on China in May 2017, the motorcycle maker Harley Davidson already begin moving its production into Thailand. That move has paid off stated Feldman. The Harley Davidson announced a 181% increase in Sales for its motorcycles in Malaysia that came from their plant in Thailand. The Company’s Second quarter 2019 results showed that Cheaper Thailand to serve the market in Malaysia . The Company’s second quarter 2019 results state that Cheaper Thailand Produced Motorcycles contribute to a 7.6% increase of the year on year retail sales growth in emerging markets. The Vietnam is clearly the Single largest beneficiary of the Short term trend.