labour-intensive industries will face a bleak outlook next year while Hun-dress of thousands of business mostly small and medium-sized enter proses will close due to higher production costs from both rising raw material prices and higher wages says a new survey .
Thanavath phonvichai Vice President for research at the university of the Thai chamber of commerce's center for economic and business fore casting said rising production costs driven by the higher price of raw materials Nd the hike in the dail minimum wage to 300baht starting on jan 1 are expected to lead directly to the closure of 200,000 businesses political volatility and higher oil prices also remain key risks for the Thai economy and must be watched closely he said the centre's latest survey showed businesses that rely heavily on labour or are old-fashioned will end up being sunset industries in the year to come hardest hit will be the tannery Indus try as it is completely unlikely to be able to compete against firms based in China Cambodia and Vietnam where labour costs are much lower shoe-making apparel and leather wear ventures that do not focus on skills and design will be the next hardest hit followed by those in the dried vege table and fruit specter which lacks quality development traditional basketry and handicraft trades and mom and pop stores homestay businesses as will as water parks and resorts that fail to differentiate themselves will also face bleak prospects toy businesses that are heavily reliant on labour will also be in trouble next year however the center said there remain dozens of business types facing a promissing 2013 medical and beauty firms as will as those involved in telecommunications and television are expected to enjoy outstanding perfomances next year the medical and beauty sectors still retain the top slots as sunrise industries as people are expected to pay more attention to their health next year boosted by the growing economy affordable prices and good quality services said mr thanavath the advent of a third generation mobile network and cheaper devices will also help to drive the communication toons technology sector he said the arrival of digital TV next year will also boost the expansion of the TV specter other sunrise industries include NGV and LPG filling station as well as businesses in the energy and alternative energy food alcohol tobacco electronics education construction real estate and logistics sectors financial institutes are also expected to do well