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Can Thai Clothing Resist Financial Crisis?

2008/11/13 11:21:00 36

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Thailand's textile and garment industry can withstand the US economic crisis and the global economic recession, increasing at least 2 to 3% next year.

Thailand's garment industry will maintain its export growth trend. Although the global economic outlook is low, its exports are expected to reach US $8 billion.

According to foreign news, a few days ago, Dej Pathanasethpong, President of the Thailand garment enterprises association, told the outside world that Thailand's textile and garment industry could withstand the US economic crisis and the global economic recession, increasing at least 2 to 3% next year.

Thailand's garment industry will maintain its export growth trend. Although the global economic outlook is low, its exports are expected to reach US $8 billion.

He said that the textile and garment industry's expected growth in exports to ASEAN and Japan will make up for the reduction of exports from the US and Europe.

This year, the output value of the world garment industry is about 700 billion dollars, of which the United States and the European Union account for 55%.

The global market has shrunk by 10% due to the economic weakness of the two giants.

As for output, Asia supplies 75 to 78% of the world's demand, of which China accounts for 35% of the total supply, followed by ASEAN, 20% and India and South Asia 17 to 18%.

He said the biggest producers may be in central and South America and North Africa, and many American, French and Italy investors are investing locally.

Once domestic investors begin to face a crisis, those investors must cut production capacity in other countries or temporarily close businesses.

Purchase orders will therefore flow to Asian enterprises to drive regional export growth.

He stressed that at present, China's textile and garment industry is in a predicament because of the shortage of labour force and the increase in wages, which has led to the closure of some enterprises in the mainland.

"The worst case is that industrial growth is flat," he said.

But we still believe that industry can grow this year, and Asian countries, such as Vietnam and China, have begun importing Thailand fabrics because Thailand cloth design is more advanced.

He predicted that textile and garment exports in Thailand will increase by 7 to 8% this year, reaching 7 billion 800 million US dollars.

Thailand consumes about 100 billion baht annually, and is expected to continue to maintain a strong position, especially in rural areas.