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"During the recent fair in Bangkok, they landed sizeable orders from Russia. Our products should be warmly welcomed there," Atiphum Kamthornvarin, president of the Lampang Federation of Thai Industries, said yesterday.

Diversifying sales is necessary, as demand from major markets has been falling due to the financial crisis. This year's business will be slashed 30 per cent from last year's Bt1.8 billion, Atiphum said.

Most operators have run into stricter lending procedures, causing the shutdown of a huge number of small businesses. Large-scale operators have also trimmed production hours to control costs.

Suppliers have also felt the pinch. Atiphum said  so far this year, raw-material orders had dropped 50 per cent. This could force the lay-offs of 2,000-3,000 workers next year.

The province's industrial sector now employs 35,000 workers, who are covered by Social Security.

Despite problems in the ceramics industry, Vikorn Phromchana, president of the Lanna Textile Industry Association, which has 50 operators as members, said the textile business in Chiang Mai would survive the economic crunch.

Most textile customers are in niche markets that possess huge purchasing power. The operators have also expanded their marketing to the Middle East, China and India. They will also go out on the main shopping street to promote their products to locals and tourists.

The northern province's textile exports will likely expand 5 per cent this year, from Bt2 billion last year, and 5-10 per cent next year, he said.