Bangkok Post
H2 likely to see orders shifted from China
Writer: VICHAYA PITSUWAN and NANCHANOK WONGSAMUTH
Published: 23/07/2009 at 12:00 AM
Newspaper section: Business
Textile exports are expected to improve in the latter half of the year as international buyers shift from higher-cost Chinese producers to local firms, says Virat Tandejanurat, director of the Thai Textile Institute.
Foreign buyers have also shied away from countries suspected of using child labour, he said.
The industry's peak sales season falls in the latter half of the year. Orders for this period have increased as buyers move away from China, he said.
"Customers see Thai products as a better choice because the quality is higher while the prices are relatively indifferent. We have also seen more orders shift away from Sri Lanka and Bangladesh who face child labour exploitation allegations," Mr Virat said.
The Thai textile and garment industry will contract by 7% to 10% on average, an improvement from the 14.9% contraction recorded in the first half of the year.
In that period garment exports contracted by about 13.9% and textiles by 15.9%.
International shipments to all markets contracted in the first half, except those to Japan, which account for about 8% of the industry's exports, and where purchase orders grew by 10%.
Thai textile and garment shipments to the US, which consumes about 40% of the sector's exports, contracted by 28% in the first half, due mainly to its slumping domestic economy and fierce competition from producers whose countries have free trade agreements with the US.
Europe, Thailand's second largest market, contracted by 5.9%.
The industry's total exports are expected to fall to $7.2 billion this year from US$7.4 billion in 2008.
About 56 new factories have been opened in the first half of the year, employing some 20,000 workers, while 40 factories with a combined 6,000 employees have shut down.
"The least competitive operators with outdated technologies are being forced to shut down because of falling orders," Mr Virat said.
However, he hopes to see a brighter end to the year from easing external factors, such as crude oil prices and exchange rates.
"Local factors such as political instability are equally important as we want new customers to expand the export market. New customers are sensitive to the local political situation," he said.
The institute is also seeking co-operation from the Board of Investment to design special incentives to target foreign direct investment in the local technical textiles segment.
"We need technical textiles to support the local automotive industry. I have also seen FDI increase in this industry elsewhere, if we can bring them [production] here it will be useful for our existing industries," Mr Virat said.
Thailand also has a strong position in producing synthetics, the raw material for technical textiles. Local demand for technical textiles is expected to reach 50 billion baht this year.
The institute's survey on the market will be released by September.
Showing posts with label Thai Garment Industry. Show all posts
Showing posts with label Thai Garment Industry. Show all posts
24 July, 2009
29 May, 2009
Columbia Sportswear busts Thai counterfeiters
Columbia Sportswear busts Thai counterfeiters
by Richard Read, The Oregonian Thursday May 28, 2009, 9:15 PM
Columbia Sportswear Co.Thai police say Teng Sok Chheng, a Chinese-Cambodian woman arrested last week in Thailand, brought faked Columbia products across from Cambodia.
Police who arrested a woman in Thailand accused of counterfeiting Columbia Sportswear products had to face down an angry mob and Thai army soldiers on the way to jail.
First, a mob surrounded the Thai cops and Teng Sok Chheng, the alleged counterfeiting ringleader, demanding her release in a gritty town bordering Cambodia. "We decided to move from the hot spot immediately," wrote an unnamed investigator working for Columbia, the apparel and footwear company based near Beaverton.
Then during the four-hour drive to Bangkok on May 21, Thai soldiers stopped the officers, investigators and their suspect, demanding her freedom. "The soldiers eventually released us," the investigator wrote, "after the police pressed the issue that the soldiers had no authority to detain us."
To Columbia managers in Oregon, the soldiers' conduct -- and repeated phone calls during the drive from influential police and military officials -- illustrates how corruption often abets international product piracy. Chheng, who allegedly brought pirated shirts and jackets across the border from her native Cambodia, evidently had great connections.
"You don't have a business like her business without paying somebody," said John Motley, Columbia Sportswear associate general counsel and director of intellectual property.
Western tourists who encounter knock-off parkas and shoes in foreign markets often find the fakes funny and their dirt-cheap prices irresistible. But at Columbia, Nike and other big-brand companies, raids on product piracy are serious cops-and-robbers ventures with multimillion-dollar stakes.
Motley guesses that annual sales of copycat Columbia products amount to $200 million, a figure that's growing as factories suffering from the global recession enter the counterfeit market.
Columbia Sportswear Co.
First, a mob surrounded the Thai cops and Teng Sok Chheng, the alleged counterfeiting ringleader, demanding her release in a gritty town bordering Cambodia. "We decided to move from the hot spot immediately," wrote an unnamed investigator working for Columbia, the apparel and footwear company based near Beaverton.
Then during the four-hour drive to Bangkok on May 21, Thai soldiers stopped the officers, investigators and their suspect, demanding her freedom. "The soldiers eventually released us," the investigator wrote, "after the police pressed the issue that the soldiers had no authority to detain us."
To Columbia managers in Oregon, the soldiers' conduct -- and repeated phone calls during the drive from influential police and military officials -- illustrates how corruption often abets international product piracy. Chheng, who allegedly brought pirated shirts and jackets across the border from her native Cambodia, evidently had great connections.
"You don't have a business like her business without paying somebody," said John Motley, Columbia Sportswear associate general counsel and director of intellectual property.
Western tourists who encounter knock-off parkas and shoes in foreign markets often find the fakes funny and their dirt-cheap prices irresistible. But at Columbia, Nike and other big-brand companies, raids on product piracy are serious cops-and-robbers ventures with multimillion-dollar stakes.
Motley guesses that annual sales of copycat Columbia products amount to $200 million, a figure that's growing as factories suffering from the global recession enter the counterfeit market.
Columbia Sportswear Co. A copycat label appears genuine but comes from a factory making counterfeits that were seized in Thailand. Many of the sizes were large, apparently for Western tourists.
Some plants make outright fakes. Some contract factories that produce legitimate goods for Columbia and other brands make extra items during night shifts that they sell on the so-called gray market.
Columbia, faced with increasing product piracy as its sales have grown, has stepped up efforts this year to catch infringers. Last week's raids across Thailand amounted to the largest bust to date in the crackdown.
Thailand has long been a hotbed for fake versions of products made by Columbia, Nike and other brands. During an unrelated operation May 6, 200 officials raided a street market in Bangkok's Patpong red-light district, seizing counterfeit goods and triggering an all-night melee in which 17 people were injured.
Patpong vendors were outraged that an outside team conducting the raids neither gave them advance notice, as normal, nor allowed them to retrieve confiscated goods, The Nation newspaper reported.
In Columbia's case, a legitimate distributor reported that shops were opening filled with imitation goods. A private investigator retained by Columbia got himself hired at the retail chain of 16 outlets spanning the southeast Asian nation.
Investigators snuck a GPS transmitter on a delivery truck. They found the fakes were coming from Cambodia. They alerted Thai authorities, who joined the investigation.
On May 20, officers raided stores in places ranging from Bangkok to the northern area of Changmai to Pattaya, a coastal tourist trap. The next day, authorities descended on Benjawan market in the dusty town of Aranyaprathet, gateway to semi-legal casinos placed between Thai and Cambodian border checkpoints.
Police began confiscating products and arrested Chheng, age unknown, detaining her in a van. "The situation at the raid went bad," the investigator wrote.
Officers realized they'd have to book Chheng in Bangkok instead of taking her to the local police station. "Hundreds of people in that area would have gone to the police station and surrounded us," the investigator wrote, "forcing the police and us to release Ms. Chheng."
On the road to Bangkok, calls poured in from Thai officials, the investigator wrote, requesting Chheng's release without charges. Officers and investigators escorting Chheng called their own high-ranking contacts, who prevailed. The team managed to book Chheng in Bangkok.
In all, authorities seized more than 4,700 counterfeit Columbia products, likely made in Cambodia and Vietnam, from four stores and two related warehouses, the company said. Police are seeking the chain's owner.
Columbia managers say counterfeiting injures consumers who buy knock-offs that don't provide high-level protection from the elements. Product piracy undermines legitimate businesses and jobs, they say, supporting factories that may abuse workers, hire children and pollute surroundings.
"We believe it's a matter of principle and integrity to protect loyal Columbia customers from imposters," said Tim Boyle, Columbia president and chief executive.
-- Richard Read,
richread@aol.com
Columbia, faced with increasing product piracy as its sales have grown, has stepped up efforts this year to catch infringers. Last week's raids across Thailand amounted to the largest bust to date in the crackdown.
Thailand has long been a hotbed for fake versions of products made by Columbia, Nike and other brands. During an unrelated operation May 6, 200 officials raided a street market in Bangkok's Patpong red-light district, seizing counterfeit goods and triggering an all-night melee in which 17 people were injured.
Patpong vendors were outraged that an outside team conducting the raids neither gave them advance notice, as normal, nor allowed them to retrieve confiscated goods, The Nation newspaper reported.
In Columbia's case, a legitimate distributor reported that shops were opening filled with imitation goods. A private investigator retained by Columbia got himself hired at the retail chain of 16 outlets spanning the southeast Asian nation.
Investigators snuck a GPS transmitter on a delivery truck. They found the fakes were coming from Cambodia. They alerted Thai authorities, who joined the investigation.
On May 20, officers raided stores in places ranging from Bangkok to the northern area of Changmai to Pattaya, a coastal tourist trap. The next day, authorities descended on Benjawan market in the dusty town of Aranyaprathet, gateway to semi-legal casinos placed between Thai and Cambodian border checkpoints.
Police began confiscating products and arrested Chheng, age unknown, detaining her in a van. "The situation at the raid went bad," the investigator wrote.
Officers realized they'd have to book Chheng in Bangkok instead of taking her to the local police station. "Hundreds of people in that area would have gone to the police station and surrounded us," the investigator wrote, "forcing the police and us to release Ms. Chheng."
On the road to Bangkok, calls poured in from Thai officials, the investigator wrote, requesting Chheng's release without charges. Officers and investigators escorting Chheng called their own high-ranking contacts, who prevailed. The team managed to book Chheng in Bangkok.
In all, authorities seized more than 4,700 counterfeit Columbia products, likely made in Cambodia and Vietnam, from four stores and two related warehouses, the company said. Police are seeking the chain's owner.
Columbia managers say counterfeiting injures consumers who buy knock-offs that don't provide high-level protection from the elements. Product piracy undermines legitimate businesses and jobs, they say, supporting factories that may abuse workers, hire children and pollute surroundings.
"We believe it's a matter of principle and integrity to protect loyal Columbia customers from imposters," said Tim Boyle, Columbia president and chief executive.
-- Richard Read,
richread@aol.com
07 May, 2009
OIE sees brighter days for industry
OIE sees brighter days for industry
By CHALIDA EKVITTHAYAVECHNUKUL
THE NATION
Published on May 7, 2009
The manufacturing production index (MPI) would plunge by only 10-12 per cent this year on the rosy assumption that domestic and global consumption will gradually recover, thereby lowering inventory and raising industrial output, according to the Office of Industrial Economics.
The OIE's prediction for manufacturing this year is still much worse than last year, which saw a slight rise in the MPI of 3.9 per cent year on year, as manufacturers faced both political chaos and the beginning of financial crisis.
The MPI started turning negative in the fourth quarter of last year, falling by 9.7 per cent, but the slide accelerated in the first quarter of this year to 20.8 per cent as the global economic crisis and local political turmoil wreaked even more damage.
OIE director-general Arthit Wuthikaro said yesterday that the manufacturing situation would see better days in the last three quarters of the year thanks to an increase in orders in some industries, particularly electronics.
The OIE forecasts that the MPI's nosedive will start to level out this quarter, to a fall of 14 per cent.
Manufacturing output would drop 8-10 per cent this year in line with the MPI, he said. Industrial output declined 6.8 per cent and 14.9 per cent in the fourth quarter of 2008 and first quarter of 2009, respectively.
The OIE was optimistic in forecasting a 14.49-per-cent drop in the output of electronic goods and a 15-per-cent shrinkage in exports.
However, Katiya Greigarn, president of the Thai Association of Electrical and Electronics Industries, believes that exports would probably fall 20-25 per cent this year.
Although the food industry has suffered less than other big industries, it is expected to face a sharper drop this quarter due to lower consumption both domestically and internationally.
Sales of the automobile industry would also decline further because of the economic slump in its export destinations and stricter loan conditions at banks in the country, he said.
However, the slash in automobile production will be less deep, from 46.7 per cent last quarter to 41.2 per cent this quarter, as inventories are worked down.
The textile and garment industry would show the best outlook because of reduced competition from China and Bangladesh and high demand for good-quality products from Vietnam, Laos and Cambodia.
"The government needs to consider the situation in detail and offer funds to help manufacturers sector by sector. Importantly, the government's financial institutions such as the SME Bank should take a greater role in boosting circulation in the market by easing loan conditions for potential operators," Arthit said.
The government should not steer the economy only by reducing interest rates but should also inject its budget into the industrial sector with more focus, he said.
Otherwise, local exporters might lose their markets to rivals whose governments could solve the economic crisis more quickly.
The Industry Ministry has proposed to the Cabinet a Bt18 billion budget for next fiscal year, but that will probably be chopped back to only Bt5 billion-Bt6 billion.
By CHALIDA EKVITTHAYAVECHNUKUL
THE NATION
Published on May 7, 2009
The manufacturing production index (MPI) would plunge by only 10-12 per cent this year on the rosy assumption that domestic and global consumption will gradually recover, thereby lowering inventory and raising industrial output, according to the Office of Industrial Economics.
The OIE's prediction for manufacturing this year is still much worse than last year, which saw a slight rise in the MPI of 3.9 per cent year on year, as manufacturers faced both political chaos and the beginning of financial crisis.
The MPI started turning negative in the fourth quarter of last year, falling by 9.7 per cent, but the slide accelerated in the first quarter of this year to 20.8 per cent as the global economic crisis and local political turmoil wreaked even more damage.
OIE director-general Arthit Wuthikaro said yesterday that the manufacturing situation would see better days in the last three quarters of the year thanks to an increase in orders in some industries, particularly electronics.
The OIE forecasts that the MPI's nosedive will start to level out this quarter, to a fall of 14 per cent.
Manufacturing output would drop 8-10 per cent this year in line with the MPI, he said. Industrial output declined 6.8 per cent and 14.9 per cent in the fourth quarter of 2008 and first quarter of 2009, respectively.
The OIE was optimistic in forecasting a 14.49-per-cent drop in the output of electronic goods and a 15-per-cent shrinkage in exports.
However, Katiya Greigarn, president of the Thai Association of Electrical and Electronics Industries, believes that exports would probably fall 20-25 per cent this year.
Although the food industry has suffered less than other big industries, it is expected to face a sharper drop this quarter due to lower consumption both domestically and internationally.
Sales of the automobile industry would also decline further because of the economic slump in its export destinations and stricter loan conditions at banks in the country, he said.
However, the slash in automobile production will be less deep, from 46.7 per cent last quarter to 41.2 per cent this quarter, as inventories are worked down.
The textile and garment industry would show the best outlook because of reduced competition from China and Bangladesh and high demand for good-quality products from Vietnam, Laos and Cambodia.
"The government needs to consider the situation in detail and offer funds to help manufacturers sector by sector. Importantly, the government's financial institutions such as the SME Bank should take a greater role in boosting circulation in the market by easing loan conditions for potential operators," Arthit said.
The government should not steer the economy only by reducing interest rates but should also inject its budget into the industrial sector with more focus, he said.
Otherwise, local exporters might lose their markets to rivals whose governments could solve the economic crisis more quickly.
The Industry Ministry has proposed to the Cabinet a Bt18 billion budget for next fiscal year, but that will probably be chopped back to only Bt5 billion-Bt6 billion.
08 April, 2009
Garment industry pins export hopes on Japan
Garment industry pins export hopes on Japan
By PETCHANET PRATRUANGKRAI THE NATION
Published on April 7, 2009
Thai garment exporters are looking to Japan as a "survival market" as shipments to other key markets decline in the wake of the global economic crisis.
The Thai Garment Manufacturers Association (TGMA) is targeting a 5-per-cent share of Japan's garment import market next year -- a sharp rise from the current one-per-cent share.
Association secretary-general Wallop Witanakorn said Japan has strong potential to become Thailand's major export market for apparel.
"Despite the slowdown in economic growth due to the global financial crisis, demand for imported clothes is still high in Japan, which is looking to compensate for a decline in imports from China," Wallop said.
Last year, Japan imported US$26.5 billion (Bt935 billion) worth of garments. It is expected to import $20 billion worth this year. Until recently, more than 90 per cent of imports came from China.
Wallop said the association wants to boost exports to Japan via the soon-to-be-implemented Asean-Japan Economic Partnership Agreement, and by making more effective use of the existing Japan-Thailand Economic Partnership Agreement (Jtepa).
According to a TGMA report, exports to Japan grew by a significant 21.09 per cent to $42.36 million in the first two months of the year, while exports to the US fell 20.6 per cent; those to the European Union fell 2.15 per cent; and exports to Asean countries dropped by 5.42 per cent in the same period.
Thai garment exports fell 7.3 per cent year-on-year to $532.2 million in the first two months of the year.
Garment exports to Japan account for 8 per cent of total garment export value. The US is still the country's largest export market, accounting for 44 per cent of total value, followed by the EU with 30 per cent.
Wallop said Thai garment ex-porters have implemented a range of marketing and cooperation strategies. Japanese investors remain interested in investing in and doing more trade with Thailand, due to the Kingdom's high manufacturing and services standards. The free-trade agreement (FTA) with Japan will also boost trade and investment growth due to lower tariffs, Wallop said.
He urged the Thai parliament to endorse the Asean-Japan FTA so the pact can take effect in the middle of the year.
Dej Pattanasethpong, president of the TGMA, said Japan has agreed to boost the Thai garment and textile industry's efficiency through two projects implemented as part of the Jtepa pact, to upgrade bleaching knowledge among labourers and develop the overall quality of bleaching, design and finishing of textiles.
The Japanese government will fund one-third of the projects' Bt10.6-million cost.
Promoting exports to Japan will gradually compensate for the losses suffered by Thai garment exports in other markets, Dej said.
Suwanchai Loh, managing director of Thai Kaneta, a major Thai exporter of garments to Japan, said the firm targets 20-per-cent growth in exports to Japan this year from Bt150 million last year.
Exports to Japan account for 50 per cent of the company's total export value.
By PETCHANET PRATRUANGKRAI THE NATION
Published on April 7, 2009
Thai garment exporters are looking to Japan as a "survival market" as shipments to other key markets decline in the wake of the global economic crisis.
The Thai Garment Manufacturers Association (TGMA) is targeting a 5-per-cent share of Japan's garment import market next year -- a sharp rise from the current one-per-cent share.
Association secretary-general Wallop Witanakorn said Japan has strong potential to become Thailand's major export market for apparel.
"Despite the slowdown in economic growth due to the global financial crisis, demand for imported clothes is still high in Japan, which is looking to compensate for a decline in imports from China," Wallop said.
Last year, Japan imported US$26.5 billion (Bt935 billion) worth of garments. It is expected to import $20 billion worth this year. Until recently, more than 90 per cent of imports came from China.
Wallop said the association wants to boost exports to Japan via the soon-to-be-implemented Asean-Japan Economic Partnership Agreement, and by making more effective use of the existing Japan-Thailand Economic Partnership Agreement (Jtepa).
According to a TGMA report, exports to Japan grew by a significant 21.09 per cent to $42.36 million in the first two months of the year, while exports to the US fell 20.6 per cent; those to the European Union fell 2.15 per cent; and exports to Asean countries dropped by 5.42 per cent in the same period.
Thai garment exports fell 7.3 per cent year-on-year to $532.2 million in the first two months of the year.
Garment exports to Japan account for 8 per cent of total garment export value. The US is still the country's largest export market, accounting for 44 per cent of total value, followed by the EU with 30 per cent.
Wallop said Thai garment ex-porters have implemented a range of marketing and cooperation strategies. Japanese investors remain interested in investing in and doing more trade with Thailand, due to the Kingdom's high manufacturing and services standards. The free-trade agreement (FTA) with Japan will also boost trade and investment growth due to lower tariffs, Wallop said.
He urged the Thai parliament to endorse the Asean-Japan FTA so the pact can take effect in the middle of the year.
Dej Pattanasethpong, president of the TGMA, said Japan has agreed to boost the Thai garment and textile industry's efficiency through two projects implemented as part of the Jtepa pact, to upgrade bleaching knowledge among labourers and develop the overall quality of bleaching, design and finishing of textiles.
The Japanese government will fund one-third of the projects' Bt10.6-million cost.
Promoting exports to Japan will gradually compensate for the losses suffered by Thai garment exports in other markets, Dej said.
Suwanchai Loh, managing director of Thai Kaneta, a major Thai exporter of garments to Japan, said the firm targets 20-per-cent growth in exports to Japan this year from Bt150 million last year.
Exports to Japan account for 50 per cent of the company's total export value.
02 April, 2009
Thailand: Garment industry cuts output as export orders fall
Garment industry cuts output as export orders fall
By ACHARA PONGVUTITHAM
THE NATION
Published on April 2, 2009
The Thai garment industry faces a bleak export outlook as orders for June and July delivery are down significantly.
As a result, production will be cut back by 15 per cent. However, there are no plans to lay off workers as most factories could still manage with their current workforce.
"We have to wait for orders towards the end of April to get the bigger picture for the rest of this year," said Wallop Witanakorn, president of Hi-Tech Group, the country's fourth biggest garment exporter.
He told The Nation that pricing is not a major issue at this stage, but the outlook depends more on consumer confidence, particularly in the US, which is the biggest market for Thai garments.
A sharp decline in new orders is evident in mass product segments, reflecting weak retail business in the US.
In addition, orders from the European Union, Japan and Asean markets also have dropped.
Thailand's garment exports to the US, EU and Japan account for 82 per cent of the industry's total shipments.
Last year, business was still brisk, requiring staff to work long hours of overtime and the hiring of sub-contract workers, said Wallop.
At present, factories have reduced overtime production from six to two hours only.
Thailand's total garment export value in the first quarter of this year is forecast to drop 5-7 per cent to US$875 million (Bt31 billion).
"Last year, the industry needed tens of thousands of workers but we recruited just a very small number, even though the government's unemployment figures were as high as 800,000 people," he said, unsure if some of the unemployed are reluctant to find new work.
He urged the government to review its policy on unemployment and new job placement.
By law, those who face lay-offs get compensation ranging from three to 10 months' salaries depending on their service period.
In addition, they get benefits from the Social Security Office equivalent to 50 per cent of the last salary for a period of six months.
However, the latter benefit was extended temporarily to eight months.
In addition, workers whose salary is Bt15,000 or less are now entitled to a Bt2,000 cash handout.
According to Wallop, some of the unemployed also decided to go back to their home province and work in agriculture such as rice and sugarcane fields.
As a result, many have been reluctant to find another factory job as soon as possible as they are still happy with these benefits.
"The government may have to study if this is good for the country's competitiveness. Moreover, society needs to adapt an attitude towards work.
"We're waiting to see if more people will return to work after the Songkran festival," he said, adding that new college graduates would also find it difficult to get a job this year.
By ACHARA PONGVUTITHAM
THE NATION
Published on April 2, 2009
The Thai garment industry faces a bleak export outlook as orders for June and July delivery are down significantly.
As a result, production will be cut back by 15 per cent. However, there are no plans to lay off workers as most factories could still manage with their current workforce.
"We have to wait for orders towards the end of April to get the bigger picture for the rest of this year," said Wallop Witanakorn, president of Hi-Tech Group, the country's fourth biggest garment exporter.
He told The Nation that pricing is not a major issue at this stage, but the outlook depends more on consumer confidence, particularly in the US, which is the biggest market for Thai garments.
A sharp decline in new orders is evident in mass product segments, reflecting weak retail business in the US.
In addition, orders from the European Union, Japan and Asean markets also have dropped.
Thailand's garment exports to the US, EU and Japan account for 82 per cent of the industry's total shipments.
Last year, business was still brisk, requiring staff to work long hours of overtime and the hiring of sub-contract workers, said Wallop.
At present, factories have reduced overtime production from six to two hours only.
Thailand's total garment export value in the first quarter of this year is forecast to drop 5-7 per cent to US$875 million (Bt31 billion).
"Last year, the industry needed tens of thousands of workers but we recruited just a very small number, even though the government's unemployment figures were as high as 800,000 people," he said, unsure if some of the unemployed are reluctant to find new work.
He urged the government to review its policy on unemployment and new job placement.
By law, those who face lay-offs get compensation ranging from three to 10 months' salaries depending on their service period.
In addition, they get benefits from the Social Security Office equivalent to 50 per cent of the last salary for a period of six months.
However, the latter benefit was extended temporarily to eight months.
In addition, workers whose salary is Bt15,000 or less are now entitled to a Bt2,000 cash handout.
According to Wallop, some of the unemployed also decided to go back to their home province and work in agriculture such as rice and sugarcane fields.
As a result, many have been reluctant to find another factory job as soon as possible as they are still happy with these benefits.
"The government may have to study if this is good for the country's competitiveness. Moreover, society needs to adapt an attitude towards work.
"We're waiting to see if more people will return to work after the Songkran festival," he said, adding that new college graduates would also find it difficult to get a job this year.
Thailand: textile industry 'needs supply chain'
textile industry 'needs supply chain'
By Petchanet Pratruangkrai
The Nation
Published on April 2, 2009
Thai garment
Thai garment and textile manufacturers must create a supply chain for the survival of the industry amid high competitiveness in the global market and slowing export growth.
Speaking at a seminar entitled "Winning the War under New Game Rules" organised by the Thai Garment Manufacturers Association (TGMA), participants shared the view that Thai manufacturers must integrate to ensure the industry's survival amid the global economic downturn.
David Birnbaum, a garment-industry expert with the World Bank, the United Nations and the World Trade Organisation, said the present crisis had decreased consumer demand for clothes by seven times from precrisis levels.
A TGMA report said garment and textile exports in the first two months of the year dropped 13.72 per cent year on year to just over US$1 billion (Bt35.52 billion). Garment exports fell 7.3 per cent to $532.2 million, while textile exports decreased 19.92 per cent year on year to $474.04 million.
To ensure the industry's survival, he suggested garment and textile manufacturers focus on seeking specific customer and importer demand through the creation of a supply chain with related industries, in order to produce high-quality goods at lower cost.
"Manufacturers should select factories that actually do the work rather than produce all items, because of better-quality production and lower costs," said Birnbaum.
Thai Weaving Industry Association president Somsak Srisuponvanit said all relevant businesses - spinning, knitting, weaving, bleaching, designing garment manufacturing - must group together to take orders and cooperate on producing goods that serve customer demand.
He said the Thai weaving industry faced high competition from neighbouring countries. One strategy to survive is to cooperate with related industries in taking orders and exporting as a whole package.
Also, the industry is trying to add high value to textile production, in order to avoid competitiveness with low-quality products in low-end markets.
RJ Gurley, director of the Asean Competitiveness Enhancement Project, said Asean members were highly efficient in cooperating with each other to develop the garment and textile industry into a major world supplier.
The project is aimed at doubling the value of exports of lightweight fabric among Asean countries from $17 million in 2007 to $34 million in the next five years.
TGMA director Patcharawan Boonnamsap said Japanese garment and textile factories were surviving the global economic slowdown because they had created a supply chain among related industries.
Cooperation among each manufacturer in related industries have lowered production costs for enterprises and helped related businesses survive, she said.
By Petchanet Pratruangkrai
The Nation
Published on April 2, 2009
Thai garment
Thai garment and textile manufacturers must create a supply chain for the survival of the industry amid high competitiveness in the global market and slowing export growth.
Speaking at a seminar entitled "Winning the War under New Game Rules" organised by the Thai Garment Manufacturers Association (TGMA), participants shared the view that Thai manufacturers must integrate to ensure the industry's survival amid the global economic downturn.
David Birnbaum, a garment-industry expert with the World Bank, the United Nations and the World Trade Organisation, said the present crisis had decreased consumer demand for clothes by seven times from precrisis levels.
A TGMA report said garment and textile exports in the first two months of the year dropped 13.72 per cent year on year to just over US$1 billion (Bt35.52 billion). Garment exports fell 7.3 per cent to $532.2 million, while textile exports decreased 19.92 per cent year on year to $474.04 million.
To ensure the industry's survival, he suggested garment and textile manufacturers focus on seeking specific customer and importer demand through the creation of a supply chain with related industries, in order to produce high-quality goods at lower cost.
"Manufacturers should select factories that actually do the work rather than produce all items, because of better-quality production and lower costs," said Birnbaum.
Thai Weaving Industry Association president Somsak Srisuponvanit said all relevant businesses - spinning, knitting, weaving, bleaching, designing garment manufacturing - must group together to take orders and cooperate on producing goods that serve customer demand.
He said the Thai weaving industry faced high competition from neighbouring countries. One strategy to survive is to cooperate with related industries in taking orders and exporting as a whole package.
Also, the industry is trying to add high value to textile production, in order to avoid competitiveness with low-quality products in low-end markets.
RJ Gurley, director of the Asean Competitiveness Enhancement Project, said Asean members were highly efficient in cooperating with each other to develop the garment and textile industry into a major world supplier.
The project is aimed at doubling the value of exports of lightweight fabric among Asean countries from $17 million in 2007 to $34 million in the next five years.
TGMA director Patcharawan Boonnamsap said Japanese garment and textile factories were surviving the global economic slowdown because they had created a supply chain among related industries.
Cooperation among each manufacturer in related industries have lowered production costs for enterprises and helped related businesses survive, she said.
29 December, 2008
Textiles and garments to buck slowdown
Textiles and garments to buck slowdown
The Office of Industrial Economics (OIE) forecasts that the textile and garment industry will grow at least 3 per cent next year despite the global economic slowdown.
After discussion with manufacturers, OIE director-general Arthit Wuthikaro noted that they had shifted focus to producing premium products to serve higher demand in Japan and other developed countries.
"We have become very competitive since we gained tax benefits under the Japan-Thailand Economic Partnership Agreement, and so we expect to boost our textile and garment exports to Japan by 20 per cent next year," he said.
He added that although the global recession would dampen overall market demand, the world's top brands would still use Thailand as their production base.
However, the industry's main obstacle is a shortage of labour. The Thai Garment Manufacturers Association says 11 companies in the Northeast are looking for approximately 13,000 workers.
The companies are in Nakorn Ratchasima, Khon Kaen, Roi Et, Buriram, Surin, Ubon Ratchathani and Chaiyaphum provinces.
"If we include Bangkok and the surrounding provinces, more than 10,000 workers are required, so we are trying to transfer laid-off workers to this industry in order to relieve the unemployment problem," Arthit said.
The textile and garment industry needs a similar level of skill to the electronics industry, he said, adding: "Therefore it would be the best solution for now to move those laid off from electronics work to the textile and garment industry by training them in sewing."
Industry Ministry permanent-secretary Damri Sukhotanang has ordered his provincial offices to concentrate on transferring the unemployed to industries that lack labour as quickly as possible.
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