Business Opportunities And New Competitors Of Thailand'S Textile And Garment Industry

Thailand

Burma has always been the largest source country of textile imports, and Thailand's total value of textile exports to Burma has increased significantly over the years. The reason is that the garment industry in Burma is developing well, thus pulling the demand for the production of raw materials for textiles.

The clothing trade between Burma and Thailand has also maintained the same growth trend, because Burma consumers love Thailand products and the Burma government has increased the purchasing power of the people by implementing the policy of increasing income.

Clothing manufacturing in Burma

The reason for this boom is that other manufacturing giants, including Thailand, need to diversify production risks and pay more attention to the investment clothing industry in Burma.

The main advantage of Burma is that Burma has the lowest labor wages and production costs compared with other neighbouring countries that are also the same as garment production bases.

Tai Hua Farmers Research Centre

Some problems that should be paid attention to in Burma's textile and garment industry are pointed out.

Although Burma has many advantages in terms of business opportunities, we must admit that there are still many obstacles that cause enterprises to worry. For example, most workers want to work in Thailand, which leads to the shortage of labour in Burma. In developing domestic production processes and training skilled workers to improve efficiency, Burma still relies on foreign capital and expertise. Burma is still subject to sanctions from western countries such as the United States and the European Union. Although many believe that western countries will gradually eliminate sanctions against Burma after the general election in April this year, when the cancellation is unpredictable, the role of Burma as a producer and exporter in the world textile and garment market is still very limited.

Therefore, Burma still needs a period of time to strengthen its textile and garment industry.

At the same time, some investors still have concerns about the unstable administrative, economic and financial systems in Burma. At the same time, the lack of infrastructure and the limitations in the initial stage of development have become an important obstacle to the convergence of production enterprises and the international market.

Burma if

Successfully eliminating these limitations can effectively attract more foreign enterprises to carry out comprehensive production and operation in Burma.

Recently, Burma announced that the floating exchange rate system will be introduced from April this year, which shows that Burma is developing in a good direction in enhancing investor confidence. This means that Burma has the strength to become a competitor to catch up with Thailand rapidly, just like Vietnam before.

Therefore, Thailand enterprises should pay close attention to the situation in Burma, formulate business planning as soon as possible, and find more trading partners in the region, and actively expand new market channels.

In addition, Thailand enterprises should pay close attention to the development of Burma special economic zone near Thailand border, because the special economic zone can provide convenience for Thailand enterprises to invest and operate in Burma.