SET-listed Asian Sea Corporation, a Thai frozen food producer, and its subsidiary Asian Alliance International (AAI) are ready to move their production base to Vietnam or the Philippines if the new coalition government raises the daily minimum wage to 450 baht.
President and chief executive Somsak Amornrattanachaikul said the group is preparing to relocate its production and investment bases to Vietnam or the Philippines to expand production capacity if the daily minimum wage is increased to 450 baht.
The Move Forward Party won the majority of seats in the House of Representative in the general election on May 14. The party's proposed minimum wage hike would affect the industry and the Thai economy, said Mr Somsak.
"Vietnam and the Philippines are more attractive to investors because they have a large working-age population and cheaper wages than Thailand," he said.
The company may need to invest its capital and knowledge elsewhere to stay competitive over the long run, said Mr Somsak. AAI manufactures and distributes ready-to-eat food and pet food.