ID :
156411
Sat, 01/08/2011 - 17:39
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Shortlink :
http://m.oananews.org//node/156411
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Thai garment industry face rising costs
BANGKOK, Jan 8 (TNA) - Thailand's garment industry is facing rising costs due to the appreciation of the Thai baht, increased wages and shortages of labour supply, prompting 15 major manufacturers in the country to plan relocating their factories overseas.
Wallop Witanakorn, an adviser of the Thai Garment Manufacturers Association, said that the 15 major garment manufacturers--which have secured one-fifth of the domestic garment market share, plan to raise their total production capacity by 20 per cent after relocating their plants to other countries where they will enjoy lower costs, namely Vietnam, Cambodia and Bangladesh. Wallop revealed that 5-6 manufacturers will first move to the lower-cost countries in the near future.
According to the Thai Garment Manufacturers Association, there are now some 1,600 garment manufacturers in Thailand and last year Thailand exported garment products worth about 3.2 billion US dollars, a 10-per cent increase from those in 2009. But the advisor of the Thai Garment Manufacturers Association projected that Thai garment exports will drop by 10 per cent this year, in line with a fall in their purchase orders, due to impacts from their rising costs, particularly the relocation overseas of the large-scale plants.
Meanwhile, Bank of Thailand (BOT) Governor Prasarn Trairatvorakul said that the central bank will continue to keep a close watch on movements of the Thai baht against other major currencies in the region to prevent any serious fluctuation of the Thai currency. (TNA)
Wallop Witanakorn, an adviser of the Thai Garment Manufacturers Association, said that the 15 major garment manufacturers--which have secured one-fifth of the domestic garment market share, plan to raise their total production capacity by 20 per cent after relocating their plants to other countries where they will enjoy lower costs, namely Vietnam, Cambodia and Bangladesh. Wallop revealed that 5-6 manufacturers will first move to the lower-cost countries in the near future.
According to the Thai Garment Manufacturers Association, there are now some 1,600 garment manufacturers in Thailand and last year Thailand exported garment products worth about 3.2 billion US dollars, a 10-per cent increase from those in 2009. But the advisor of the Thai Garment Manufacturers Association projected that Thai garment exports will drop by 10 per cent this year, in line with a fall in their purchase orders, due to impacts from their rising costs, particularly the relocation overseas of the large-scale plants.
Meanwhile, Bank of Thailand (BOT) Governor Prasarn Trairatvorakul said that the central bank will continue to keep a close watch on movements of the Thai baht against other major currencies in the region to prevent any serious fluctuation of the Thai currency. (TNA)
