Textiles and garments to buck slowdown

After discussion with manufacturers, OIE director-general Arthit Wuthikaro noted that they had shifted focus to producing premium products to serve higher demand in Japan and other developed countries.

"We have become very competitive since we gained tax benefits under the Japan-Thailand Economic Partnership Agreement, and so we expect to boost our textile and garment exports to Japan by 20 per cent next year," he said.

He added that although the global recession would dampen overall market demand, the world's top brands would still use Thailand as their production base.

However, the industry's main obstacle is a shortage of labour. The Thai Garment Manufacturers Association says 11 companies in the Northeast are looking for approximately 13,000 workers.

The companies are in Nakorn Ratchasima, Khon Kaen, Roi Et, Buriram, Surin, Ubon Ratchathani and Chaiyaphum provinces.

"If we include Bangkok and the surrounding provinces, more than 10,000 workers are required, so we are trying to transfer laid-off workers to this industry in order to relieve the unemployment problem," Arthit said.

The textile and garment industry needs a similar level of skill to the electronics industry, he said, adding: "Therefore it would be the best solution for now to move those laid off from electronics work to the textile and garment industry by training them in sewing."

Industry Ministry permanent-secretary Damri Sukhotanang has ordered his provincial offices to concentrate on transferring the unemployed to industries that lack labour as quickly as possible.