Thailand Is Committed To Reducing Inventory Costs In Textile And Garment Industries.

The Ministry of industry of Thailand pointed out that the government is committed to reducing the holding costs of 6 major manufacturing industries, with a target reduction of 27 billion baht in 2016 and a decrease of 15%.

The Ministry of industry said that logistics cost is an important factor in competitiveness evaluation. As long as the countries with low logistics cost are competitive, such as stars, Japan and the United States, it is not easy to reduce traffic costs.

According to the 2009 IMD world competitiveness rating, Thailand ranked twenty-sixth, but only ranked thirty-fifth on Logistics items, behind Malaysia's ranking of 18 and 29 respectively.

According to the data of Thailand State Economic and Social Development Bureau, in 2008, logistics cost in Thailand accounted for about 18% of GDP, which can be divided into three parts: administrative management, inventory pportation and pportation cost. The cost of shipping accounts for about 8.2%, while 90% of the cost is in storage, and the rest is warehousing charges.

The total logistics cost (about 260 billion baht) is 3% for the industrial sector, and 5% for agricultural products, trade and services.

In order to effectively help manufacturers to reduce logistics costs, the Ministry of industry is divided into 13 categories of inventory cost categories, the first 6 accounts for 180 billion baht, accounting for 1.12% of GDP, which refers to food, petrochemical and plastics, automotive, electrical and electronic, rubber, and textile garments, etc., and has taken into account the factors of SMEs. Compared with other ASEAN countries, Thailand has proposed a large-scale logistics development plan.

According to the logistics planning period of the manufacturing industry, the 6 major industrial sectors are scheduled to start in 2011 and will reach a target of 15% reduction in inventory holding cost by about 27 billion baht during the period from 2016 to 2011, including the upgrading of logistics and pportation related industries, such as the border economic zone and tram system of the deep seaport Industrial Zone in tun Fu.

In addition, the development plan of the special border economic zone will first be opened at Lai Xing government in the Myawaddy province near Burma to promote trade in garments, consumer goods and petrochemical products. Next, the special economic zone will be opened in the Qing Cai house adjacent to Laos and the neighboring Mu Na government, with the neighboring Sha Jiao Fu in Kampuchea and the Songkhla house adjacent to Malaysia.