Bankruptcy Blowout: How China’s Rise Sent Shockwaves from Japan to Thailand, Taking Down Electronics Giant Funai

Following the news that Funai (Thailand) Co., Ltd., Nakhon Ratchasima Province, announced the closure of its factory and the dismissal of all 862 employees in Thailand. There is news in Japan that The parent company in Japan is Funai Electric, which is a radio receiver company. Apparatus for recording and duplicating sound and images Filed for bankruptcy in Japan. which the court approved last week

The Japan Times and Asahi websites reported that Funai Electric Company, a mid-sized Japanese electronics manufacturer, and a supplier to Walmart received approval from a federal district court to enter bankruptcy proceedings on October 24, after that the company faced a severe blow due to intensifying competition from Chinese and “South Korean” manufacturers.

According to data from Tekoku Databank, Funai Electric Co., Ltd., based in Daito City, Osaka Prefecture, had a debt of about 46.1 billion yen (about 10 billion baht) at the end of March 2024.

Founded in 1961, Funai is a major OEM in the electronics industry both in Japan and abroad. But the company faces stagnation in the North American market and stiff competition from Chinese rivals. After the 2008 global financial crisis, as well as being affected by the problems of the group’s beauty equipment companies.

By the early 2000s, Funai had more than 30% of the VCR market in the United States and 50% of the combined TV/VCR market in Japan. At its peak in fiscal 2006, the company’s annual sales totaled nearly 400 billion yen.

However, since the late 2000s, Funai has faced increasing competition from Chinese and Korean manufacturers. Resulting in declining sales and continued losses.

Funai Electric Co. was acquired by Shuwa System Holdings Co. and delisted in 2021, before becoming a subsidiary of Funai Electric Holdings Co. last year.

The Ministry of Labor orders assistance in the treatment of employees

Mr. Phumiphat Mueanchan, spokesperson of the Ministry of Labor, revealed that Mr. Pipat Ratchakitprakarn, Minister of Labor, ordered to follow up on the assistance and compensation of employees of Funai (Thailand) Co., Ltd., Nakhon Province Ratchasima, upon hearing the news that the headquarters in Japan went bankrupt, giving rise to Funai (Thailand) Co., Ltd., a company that produced radio receivers. Devices for recording and duplicating sounds and images He had to close the business and fire all the employees. The inspection revealed this. The company has a total of 862 employees, divided into 310 males and 552 females.

A spokesperson for the Ministry of Labor said that the Nakhon Ratchasima Provincial Labor Office reported that on October 29, 2024, the aforementioned company announced a temporary cessation of operations. From 1 to 30 November 2024 due to the bankruptcy filing of the parent company in the Japanese court. It affects the supply of raw materials that will be used in production. The company will pay employees a salary equal to 75% of their salary under Section 75 of the Labor Protection Act 1998.

The Minister of Labor is concerned for all affected employees. and instructed agencies of the Ministry of Labor to collect data and provide assistance to employees according to the law to cover all aspects, including wages, social security benefits and others.