Textile exports set to rise to top five

At present, garments and textiles are the country's seventh-largest export sector, coming after automatic data processors, car parts and accessories, refined fuels, precious stones and jewellery, rubber and electronic circuitry.

Garment and textile exports were valued at US$6.97 billion (Bt233 billion) last year, and the Thai Garment Manufacturers Association expects the figure to grow 10 per cent to $7.67 billion this year.

President Dej Pathanasethpong said clothing exports had a bright future, because of better conditions facilitating export growth.

"We're confident of a brighter future despite some negative factors still affecting export growth, such as a labour shortage," he said.

China, the world's biggest garment and textile exporter, faces increases in production costs. Its exports have dropped 11 per cent this year, because of quota restrictions, low quality, rising export prices and European buyers shifting to other Asian markets, particularly Thailand, Dej said.

The global value of garment and textile trading is expected to reach $1 trillion in 2012. Of that, 65 per cent, or $650 billion worth, will go to Asian countries. Thailand's strengthening base of integrated textile, garment and fashion-goods manufacturers will generate a higher share of this market, he said.

At present, Thailand is the world's 11th-largest garment exporter, and its share of the global market should gradually rise over the next five years. Even Japan, which is a major importer of garments from China, is shifting its focus to Thailand, because it knows the quality of Thai products.

Dej said garment and textile exports should increase 15 per cent in the coming years, because local manufacturers were more competitive, developing value-added garments and planning to produce fashion and brand-name products to serve international demand.

Department of Export Promotion (DEP) director-general Rachane Potjanasuntorn said the government was supporting local garment and leather-goods traders by organising an international trade fair to attract foreign buyers.

The Bangkok International Fashion Fair and Bangkok International Leather Fair 2008 will be held at the Bangkok International Trade and Exhibition Centre on Bang Na-Trat Road from August 27-31.

Thai Leather Goods Association president Dhavadh Chiu said leathers-goods manufacturers also expected brighter conditions this year and in the future, because of their strategy of focusing on quality rather than trying to compete with low-priced goods from China.

Exports of leather goods are expected to reach a value of $2.9 billion in 2012, up from $1.8 billion this year.

Dhavadh said Thai leather-goods producers were eyeing Italy as a good market in which to develop brand names for quality products.

To this end, the association and the DEP will send a team of local designers to Italy to learn how to develop successful high-quality brand names from well-known producers, including Ferragamo, Gucci and Dior.