Bangkok Post,
12 May 2012
Vice-president Yotsaton Kijkusol said the second half is the
traditional peak season for these exports, and this determines the
overall direction of the textile and garment industry.
"If the second half sees a contraction, then the entire year will likely see one too," he said.
However, Mr Yotsaton predicts only a single-digit contraction.
If the increase in exports to those Asian markets can be sustained, then that may balance at least some of the losses from EU and US markets, he said.
First-quarter exports to China and Hong Kong grew by 15% year-on-year.
Wiwat Hirunpruk, manager of the Thailand Textile Institute's Fashion Knowledge Creation Center, said China has moved some orders to Thailand. China has far too many orders to handle.
Some Thai companies like the Central Group have invested in department stores in China, and these have also placed orders from Thailand.
Exports to Japan also spiked, with 36.3% year-on-year growth last quarter.
"Japan wants to avoid being overly dependent on China," said Mr Wiwat.
Businessmen from both countries are also taking advantage of tariff reductions under the Japan-Thailand Economic Partnership Agreement.
Mr Yotsaton said both the government and the private sector are looking hardest at the Japanese market.
Traditionally, exports to the US account for 30% of the total, followed by 20% to the EU.
But financial crises have led to a fall in demand, causing first-quarter textile and garment exports to contract by 7% year-on-year to US$750 million.
Mr Yotsaton expects the hike in the daily minimum wage will prompt 15 large and 10 medium-sized firms to move to neighbouring countries.
However, he said since the new wage level has just been implemented and companies are still trying to adjust it is still too early to know exactly how many really will move.
Some textile companies are paying 700 baht a day now for labour, he said.
He said the wage hike will cause a 4.4% increase in production costs for textiles and 8.8% for garments.
12 May 2012
A surprise increase in first-quarter exports of
textiles and garments to Japan, China and Hong Kong, if sustained, could
help to offset an anticipated contraction in the local textile industry
later this year, says the Thai Garment Manufacturing Association.
"If the second half sees a contraction, then the entire year will likely see one too," he said.
However, Mr Yotsaton predicts only a single-digit contraction.
If the increase in exports to those Asian markets can be sustained, then that may balance at least some of the losses from EU and US markets, he said.
First-quarter exports to China and Hong Kong grew by 15% year-on-year.
Wiwat Hirunpruk, manager of the Thailand Textile Institute's Fashion Knowledge Creation Center, said China has moved some orders to Thailand. China has far too many orders to handle.
Some Thai companies like the Central Group have invested in department stores in China, and these have also placed orders from Thailand.
Exports to Japan also spiked, with 36.3% year-on-year growth last quarter.
"Japan wants to avoid being overly dependent on China," said Mr Wiwat.
Businessmen from both countries are also taking advantage of tariff reductions under the Japan-Thailand Economic Partnership Agreement.
Mr Yotsaton said both the government and the private sector are looking hardest at the Japanese market.
Traditionally, exports to the US account for 30% of the total, followed by 20% to the EU.
But financial crises have led to a fall in demand, causing first-quarter textile and garment exports to contract by 7% year-on-year to US$750 million.
Mr Yotsaton expects the hike in the daily minimum wage will prompt 15 large and 10 medium-sized firms to move to neighbouring countries.
However, he said since the new wage level has just been implemented and companies are still trying to adjust it is still too early to know exactly how many really will move.
Some textile companies are paying 700 baht a day now for labour, he said.
He said the wage hike will cause a 4.4% increase in production costs for textiles and 8.8% for garments.
No comments:
Post a Comment