Garment-export growth is expected to fall to 5 per cent next year from 8 per cent this year as a result of the suspension of free-trade talks with the US and the uncertain implementation of a free trade agreement with Japan.

Dej Pathanasethpong, president of the Thai Garment Manufacturers Association (TGMA), said yesterday that the clothing exporters were plagued with a slew of negative factors that will continue into next year.

Tougher competition from rivals such as China and Vietnam will also cut into the Kingdom's exports. Also the appreciate of the baht has made Thai clothing more expensive on the international market particularly in relation to duds made in China, which does not allow its currency to fluctuate freely.

Garment exports are expected to reach US$4 billion-$4.5 billion (Bt150 billion-Bt169 billion) next year compared to an estimated $3.8 billion this year.

Sukij Kongpiyacharn, vice-president of the association, said export orders had decreased slightly this year due to strong competition, particularly from China and Vietnam.

In Japan, some importers have put off placing orders this year due to the vague implementation of the Thai-Japan Economic Partnership Agreement, a problem expected to continue affecting the industry next year.

Japan and the US are among the top three importers of Thai garments.

To ensure export growth and maintain competitiveness next year, Dej said manufacturers would shift from made-to-order manufacturing to focus more on creating their own brands.

"We will focus more on brand creation and improving opportunities to become an Asean leader in garment manufacturing by 2015," he said.

Thai garments accounted for only 1 per cent of the world market. However, clothing firms have tried to improve manufacturing efficiency, which Dej said would reduce costs and prices and in turn increase the country's share of the world market to 30 per cent within the next 10 years.

The TGMA will cooperate with the Export Promotion Department to develop both small and large company's manufacturing efficiency.

Chantra Purnariksha, director-general of the department, said the cooperation would also include organising the Exclusive Brands Exhibition next year to promote Thai labels.

"Having Thai-owned brands is an important factor in helping Thailand become an Asean leader [in the garment industry]," she said.

Thailand's garment exports increased 4.9 per cent to $2.37 billion in the first eight months of the year

from the same period in 2005, while textile exports grew by 2.4 per cent to $2.16 billion, according to the association.

Petchanet Pratruangkrai

The Nation