• 
• 

Published on August 8, 2007

Executive director Virat Tandaechanurat yesterday said some textile companies, including Thai Silp South East Asia Import Export, were forced to shut down from a lack of understanding and trust on the part of commercial banks.

"Textile companies have continually adjusted their strategies. In the past year, their machinery import value was worth Bt15 billion to Bt20 billion," Virat said.

Thai Silp last month decided to shut down its factories permanently, a week after reopening. The owners said the company failed to win a credit-line extension from bank creditors. They did not change their mind even when creditors agreed to step in to restructure the business so that production could be renewed.

Virat said many factories, through cooperation with the institute, had successfully achieved standard certificates from major trading partners.

Four factories have been able to use non-poisonous dye colours and awarded an environmental label from the European Union.

Virat also noted that Thailand's textile and garment industry had expanded 2.6 per cent in the first half of the year and could grow 4-5 per cent for the entire year, with a total export value of US$6.9 billion to $7 billion (Bt234 billion to Bt237 billion), up from $6.8 billion last year. Adding to the increase is the Japan-Thai Economic Partnership Agreement, which would boost Thai exports to Japan from a mere $400 million at present.

"Thai exporters face competition mainly from Bangladesh, Vietnam, India and China. And it's necessary for them to adjust their production process to manufacture more value-added products on the back of advanced technologies," he said.

Virat also said Thai textile companies had also been hit by cheap products from China.

"The government should impose stringent safety standards on textile imports," he said.

The US is now Thailand's largest export market for textiles. Last year, exports to that country totalled $2.18 billion, with pure textiles accounting for $320 million and apparel exports $1.86 billion.

"Small and medium-sized textile companies must improve themselves, as their export value to the US could drop to $50 million, because of fiercer competition from cheap-labour markets," Virat said.