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Thailand Garment Industry: Tightening Up The Export Market In Response To The World Crisis

2008/11/5 9:05:00 17

According to the Research Report of Thailand Taihua Farmers Research Center in October, the US financial crisis is spreading to all parts of the world, including the European Union, Japan and Asian countries, and is expected to have a serious impact on Thailand's export industry in 2009.

It is estimated that ready-made garments will be one of the first export products, because ready-made clothes are the products that the public can reduce the quantity of purchases in the declining purchasing power, and will not cause too much impact on daily life. If you want to buy them, you can also buy products from low cost production countries such as China, India, Bangladesh, Indonesia, Vietnam and Kampuchea, resulting in fierce competition for Thailand garments under the situation of limited purchasing power.

According to the Ministry of Commerce of Thailand, the export volume of garments in Thailand in the first 8 months of 2008 was US $2 billion 293 million 200 thousand, an increase of 2% over the same period last year.

Compared with the 6.6% decline in garment exports in Thailand in 2007, clothing exports in 2008 will increase by 0-2% and export volume of 29.87-30.5 billion.

As the United States, the European Union and Japan, which account for about 85% of Thailand's garment export market, are facing an economic crisis and the recession is more serious than other regions. Therefore, Thailand's clothing exports will be severely hit.

As the garment industry is one of the most important industries in Thailand, it can generate about 3 billion US dollars in foreign exchange revenue and about 800 thousand jobs every year in Thailand (occupying 14.6% and 2.2% of Thailand's industrial employment population and the national employed population respectively). Therefore, Thailand garment operators must look for potential new export markets, especially those affected by the world economic crisis, which are smaller than those of the main export markets.

However, opening up new export markets is not easy, because it faces many obstacles, especially the obstacles to acquiring consumer demand information in new markets.

At the same time, the problem of purchasing power in major export markets has led to other garment exporters seeking new export markets as well as Thailand.

To this end, the key to making Thailand garments continue to export to foreign markets is to have more characteristics and lower production costs in terms of product design and quality than competitors. This will help to increase the chances that Thailand products will be favored by consumers.

(Jia Xiao)