Prospects for the Textile and Clothing Industry in Thailand
The textile and clothing industry in Thailand encompasses a broad range of manufacturing activities and process stages, unlike the industries in many other Asian countries. It provides jobs for over 1 mn people, making it the largest employer in Thailand’s manufacturing sector. Furthermore, its success in export markets has made it a significant earner of foreign exchange. Thailand is also a major importer of textiles and clothing—as well as being a major exporter—and in 2009 it bought US$2.9 bn worth of these items from the rest of the world.
The textile and clothing industry has benefited significantly over the years from government policies designed to encourage its development, and from the government’s liberal stance on trade and foreign investment. However, it has also faced a number of challenges, including rising labour costs, declining productivity, and the global elimination of quotas—which exposed it to the full forces of international competition. More recently, it has been adversely affected by the global economic downturn—and in 2009 it suffered from an 11% fall in exports. Also, investors have been concerned about social and political instability and matters became even more serious in April 2010 when the government declared a state of emergency in response to a rising tide of street protestors. Internationally, there is the ever present threat of competition from other Asian producers, notably China. Although the quality of production in Thailand is considered to be good, production costs are higher than in many competing countries.
More positively, there are hopes that the decline in exports will be reversed in 2010 as demand picks up, not least in the key Western markets of the USA and the EU. Also, closer links are being forged with Japan under the terms of the “Textile and Apparel Development for Export to Japan under JTEPA Framework” initiative, and this holds the promise of access to the latest technology and enhanced marketing opportunities. Looking forward, although competition from lower cost countries looks set to intensify, the industry has the potential to become a significant and growing supplier of high added value products to international brands and major global retailing groups.
The textile and clothing industry has benefited significantly over the years from government policies designed to encourage its development, and from the government’s liberal stance on trade and foreign investment. However, it has also faced a number of challenges, including rising labour costs, declining productivity, and the global elimination of quotas—which exposed it to the full forces of international competition. More recently, it has been adversely affected by the global economic downturn—and in 2009 it suffered from an 11% fall in exports. Also, investors have been concerned about social and political instability and matters became even more serious in April 2010 when the government declared a state of emergency in response to a rising tide of street protestors. Internationally, there is the ever present threat of competition from other Asian producers, notably China. Although the quality of production in Thailand is considered to be good, production costs are higher than in many competing countries.
More positively, there are hopes that the decline in exports will be reversed in 2010 as demand picks up, not least in the key Western markets of the USA and the EU. Also, closer links are being forged with Japan under the terms of the “Textile and Apparel Development for Export to Japan under JTEPA Framework” initiative, and this holds the promise of access to the latest technology and enhanced marketing opportunities. Looking forward, although competition from lower cost countries looks set to intensify, the industry has the potential to become a significant and growing supplier of high added value products to international brands and major global retailing groups.
SUMMARY
IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO
THE ECONOMY OF THAILAND
DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN
THAILAND
THAILAND: GEOGRAPHICAL, POLITICAL AND ECONOMIC
PROFILE
Geographical profile
Political profile
Economic profile
THAILAND: INFRASTRUCTURE
Road network
Rail and mass transit systems
Airports
Waterways and seaports
THAILAND: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING
INDUSTRY IN THAILAND
Textiles
Clothing
THAILAND: FIBRE PRODUCTION AND CONSUMPTION BY THE
TEXTILE INDUSTRY
Fibre production
Fibre consumption by the textile industry
Outlook
THAILAND: TEXTILE AND CLOTHING PRODUCTION AND
CONSUMPTION
Yarn production and consumption
Fabric production and consumption
Clothing production
PRODUCTION TECHNOLOGY AND MACHINERY IN THAILAND’S
TEXTILE AND CLOTHING INDUSTRY
THAILAND’S TEXTILE AND CLOTHING EXPORTS
Textile exports
Clothing exports
Leading textile and clothing export markets
Textile and Apparel Development for Export to Japan under
JTEPA Framework
THAILAND’S TEXTILE AND CLOTHING IMPORTS
Textile imports
Clothing imports
Textile and clothing machinery imports
TEXTILES AND CLOTHING IN THAILAND: GOVERNMENT
POLICIES AND INVESTMENT INCENTIVES
Government policies
Investment incentives
Foreign investment
TEXTILES AND CLOTHING IN THAILAND: STRENGTHS,
WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO
THE ECONOMY OF THAILAND
DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN
THAILAND
THAILAND: GEOGRAPHICAL, POLITICAL AND ECONOMIC
PROFILE
Geographical profile
Political profile
Economic profile
THAILAND: INFRASTRUCTURE
Road network
Rail and mass transit systems
Airports
Waterways and seaports
THAILAND: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING
INDUSTRY IN THAILAND
Textiles
Clothing
THAILAND: FIBRE PRODUCTION AND CONSUMPTION BY THE
TEXTILE INDUSTRY
Fibre production
Fibre consumption by the textile industry
Outlook
THAILAND: TEXTILE AND CLOTHING PRODUCTION AND
CONSUMPTION
Yarn production and consumption
Fabric production and consumption
Clothing production
PRODUCTION TECHNOLOGY AND MACHINERY IN THAILAND’S
TEXTILE AND CLOTHING INDUSTRY
THAILAND’S TEXTILE AND CLOTHING EXPORTS
Textile exports
Clothing exports
Leading textile and clothing export markets
Textile and Apparel Development for Export to Japan under
JTEPA Framework
THAILAND’S TEXTILE AND CLOTHING IMPORTS
Textile imports
Clothing imports
Textile and clothing machinery imports
TEXTILES AND CLOTHING IN THAILAND: GOVERNMENT
POLICIES AND INVESTMENT INCENTIVES
Government policies
Investment incentives
Foreign investment
TEXTILES AND CLOTHING IN THAILAND: STRENGTHS,
WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
LIST OF TABLES
Table 1: Thailand: political and economic profile, 2009
Table 2: Thailand: economic indicators 2006-09
Table 3: Thailand: textile machinery installed capacities, 1998-2008
Table 4: Thailand: production and consumption of yarn, 1997-2008
Table 5: Thailand: production and consumption of woven fabrics, 1997-2008
Table 6: Thailand: textile and clothing exports, 1990-2009
Table 7: Thailand: textile exports by product, 2005-09
Table 8: Thailand: clothing exports by product, 2005-09
Table 9: Thailand: garment exports by fibre type, 2005-09
Table 10: Thailand: textile and clothing exports by leading destination,2005-09
Table 11: Thailand: garment exports by leading destination, 2005-09
Table 12: Thailand: textile and clothing exports to Association of Southeast Asian Nations (Asean) member countries, 2005-09
Table 13: Thailand: woven fabric exports by leading destination, 2005-09
Table 14: Thailand: textile and clothing imports, 2005-09
Table 15: Thailand: textile imports by product, 2005-09
Table 16: Thailand: natural and man-made fibre imports by leading supplying country, 2005-09
Table 17: Thailand: fabric imports by leading supplying country, 2005-09
Table 18: Thailand: clothing imports by product, 2005-09
Table 19: Thailand: clothing imports by leading supplying country, 2005-09
Table 20: Thailand: textile and clothing machinery imports, 2005-09
Table 21: Thailand: tax and duty privileges available to newly established enterprises, by zone, 2005-09
Table 1: Thailand: political and economic profile, 2009
Table 2: Thailand: economic indicators 2006-09
Table 3: Thailand: textile machinery installed capacities, 1998-2008
Table 4: Thailand: production and consumption of yarn, 1997-2008
Table 5: Thailand: production and consumption of woven fabrics, 1997-2008
Table 6: Thailand: textile and clothing exports, 1990-2009
Table 7: Thailand: textile exports by product, 2005-09
Table 8: Thailand: clothing exports by product, 2005-09
Table 9: Thailand: garment exports by fibre type, 2005-09
Table 10: Thailand: textile and clothing exports by leading destination,2005-09
Table 11: Thailand: garment exports by leading destination, 2005-09
Table 12: Thailand: textile and clothing exports to Association of Southeast Asian Nations (Asean) member countries, 2005-09
Table 13: Thailand: woven fabric exports by leading destination, 2005-09
Table 14: Thailand: textile and clothing imports, 2005-09
Table 15: Thailand: textile imports by product, 2005-09
Table 16: Thailand: natural and man-made fibre imports by leading supplying country, 2005-09
Table 17: Thailand: fabric imports by leading supplying country, 2005-09
Table 18: Thailand: clothing imports by product, 2005-09
Table 19: Thailand: clothing imports by leading supplying country, 2005-09
Table 20: Thailand: textile and clothing machinery imports, 2005-09
Table 21: Thailand: tax and duty privileges available to newly established enterprises, by zone, 2005-09
LIST OF MAPS
Map of Thailand
Map of Thailand
