The Thai Garment Manufacturers' Association and the Commerce Ministry's Export Promotion Department will stage a road show in Japan next month in hopes of attracting more business alliances with Japanese partners.

The aimed is to smoothe the progress of manufacturing development and market access following implementation of the Japan-Thailand Economic Partnership Agree-ment later this year.

Association president Dej Pathana-sethpong said Thai manufacturers would talk to Japanese government agencies, importers, traders and manufacturers. Thai exporters hope to learn more about restrictions and market demand in Japan.

Although the free-trade agreement is expected to be formally implemented in Septem-ber, it will have no impact on Thai exports until the fourth quarter, when orders from Japan are expected to lift the Kingdom's garment exports 30 per cent. Solid results in the fourth quarter are expected to result in 7-8 per cent growth in the value of Thai garment exports this year.

"We must learn more about customers' demands, in order to maintain their confidence," Dej said. "Importers focus on cost reduction and need their suppliers to serve demand."

He said Thai manufacturers must focus mainly on quality control. Buyers are not visiting their foreign suppliers any more, as part of a cost-reduction plan. As a result, Thai manufacturers must learn how they need to lift their quality standards to meet current requirements.

Dej, who is also managing director of Thong Thai Textile, said his company was seeking a Japanese alliance to manufacture products in Thailand. The company believes a Japanese partner will encourage it to both develop its local manufacturing and expand into neighbouring countries such as Laos and Cambodia.

"We want to become the best garment manufacturer in the future, so we want to have advanced manufacturing technology from Japan to upgrade our production, from upstream through downstream," he said.

Dej said garment manufacturing in Thailand remained competitive despite the emergence of regional rivals with cheaper labour costs, including China, Vietnam and Cambodia. There is only a small gap between overall production costs in those countries and those in Thailand.

"The most important things for the garment industry are speed and 'decisive factors', to convince customers they should continue to place orders," he said.

Achara Pongvutitham

The Nation