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Published on November 28, 2007

Thai Garment Manufactur-ers' Association vice president Somboon Juasathirattana said the industry export-growth forecast was 3-4 per cent for next year, an improvement over this year.

Exports are expected show zero growth this year.

The first 10 months saw a fall.

The problem is being caused by the US - a major importer of garments - delaying orders as a result of its sub-prime mortgage troubles.

However, that country will order more goods from Thailand as the crisis is solved. As a result, orders from the US will increase during the rest of the year.

Another important factor affecting the industry is the stronger baht. The association wants to see a new government stabilise it at 34 to the US dollar.

"Export value during the first 10 months of the year showed minus-4-per-cent growth, the worst performance in 10 years," he said.

Thai Autoparts Manufac-turers' Association director of export development Sookjai Leungme-kul said export growth would halve to 15 per cent next year from this year. Total export value will fall from US$6.9 billion (Bt233 billion) to $5.9 billion.

He said slow growth was predicted because of tougher competition from major export rivals, including China, India and Vietnam.

In addition, the fluctuating baht and rising oil prices together have increased production costs.

The Nation