Thailand is the world's 12th-largest textile and garment exporter, with an export value of US$6.8 billion (Bt236 billion) and 1.6 per cent of the market. The biggest exporter is China, which has more than 20 per cent of the market, followed by the European Union and Bangladesh.

Virat Thandaechanurat, the institute's executive director, said management strategies must be restructured in order to compete. "Thailand has the potential to gain a greater share of the world trade, but it has lost the opportunity over the past two years, because the Bangkok Fashion City project is developing in the wrong direction," he said. Virat said the government should refocus to develop people, technology and management as a whole and not promote each project separately.

The Bangkok Fashion City project was suspended early this year while it awaits the government's decision in September on whether it should proceed.

In addition, he urged the government to help promote small and medium-sized enterprises, which account for more than 90 per cent of all garment and textile manufacturers in the country.

Of 4,700 textile and garment makers, SMEs will be the hardest hit by higher competition. The government should encourage them to change production from made-to-order clothing to their own brands and designs. Virat said they should also take the opportunity of the stronger baht to import modern machinery.

To support the plan to increase market share for textile and garment exports, the institute suggested five steps to promote sustainable export growth.

First, establishing a research and development centre from downstream towards upstream industry. Second, increasing competitive advantages for skilled Thai workers and decreasing costs of management by establishing a fashion school.

Next, creating a supply-chain network for the textile industry through to the garment industry, so they can support each other and decrease imports of raw materials from other countries, with a fashion-trend centre to link manufacturers with traders and consumers.

Fourth, developing the standard of the industry to meet demand from importing countries. Finally, promoting local brands and developing fabric quality.

Virat said the world market was demanding products with good designs and brand guarantees. The institute estimates the country needs about 2,000 designers a year; only 1,800 can be supplied.

To support the plan, the institute has recently initiated Fashion Image Campus 2007 to train young designers. Initially, the goal is to produce 400 from the four main regions of the country.

Petchanet Pratruangkrai

The Nation