The Industry Ministry has decided to end the Bangkok Fashion City project due to its failure to achieve added value and greater productivity in the industry.

Instead the ministry will launch a new project to increase the number of Thai fashion designers. The project is intended to develop the industry's roots, with designers who can help the country become a regional fashion hub. The ministry has approved a budget of Bt44 million to support the young-designer development programme.

"Our study showed that all of the budget [for Bangkok Fashion City] had been spent to promote Thailand's image as a regional hub for businesses related to fashion rather than focusing on the Kingdom's manufacturing potential, particularly in small and medium-sized enterprises," Deputy Industry Minister Piyabutr Cholvijarn said in an interview with The Nation last week.

He added that the existing projects had not created added value to the industry to encourage the country's final goal of "Bangkok Fashion City". The activities are mainly focused on marketing campaigns.

The Bt1.53-billion investment by the ousted government came up with small results. The money was allocated to nine sub-projects, but only six projects were completed.

The three unfinished projects will end in March. They are the Bangkok Fashion City Road Show, the Bangkok Fashion City Promotion and a project to increase the competitiveness of the leather industry. These projects account for a combined budget of Bt175 million.

Under the ministry's new plan, a Bt30-million budget will be allocated to the Office of Small and Medium Entrepreneur Promotion to focus on increasing the productivity of targeted sectors, including garments, leather and jewellery.

The Thailand Textile Institute will handle the remaining budget to develop and support Thai designers' skill.

Thai manufacturers have focused on original-equipment manufacturers, which will lose their export competitiveness to cheaper production-cost countries, particularly those with lower wages, such as Vietnam and China.

Nevertheless, the country's textile industry is forecast to enjoy continued export growth of 10-15 per cent next year. This derives in large part from major importing countries, including the US and the European Union, having set safeguard measures against Chinese textiles.

In addition, the government will try to find new, non-traditional export markets.

Chalida  Ekvitthayavechnukul

The Nation