Political Chaos, Thailand's Clothing Exports Are Down By 20%

This year, the centre has set the target of 30 billion baht for export products, but it is not sure whether it can be completed. Although the European and US economies are beginning to improve, Thailand's exports are also constrained by domestic political factors. In 2013, the export value was about 25 billion baht, and it did not reach the target of 30 billion baht.

Since November 2013, workers in Thailand's processing plants do not have to work overtime, and some operators have gone to China and India to purchase products, because of the fashion of these countries. clothing The industrial chain of processing and manufacturing is perfect, and the labor price is lower than that of Thailand. Although Thailand has the advantage of winning the design, this is the direction that Thailand fashion garment processing industry striving to enhance its added value, because production costs can not compete with China and India.

At the same time, domestic sales also have the same trend as 20-30% reduction in exports. The wholesale center has annual sales of about 15 billion baht, which was reduced to 14 billion baht last year due to slowing economic growth and political problems. In 2014, sales were expected to reach 15 billion baht, because the estimated political situation would be eased. The depreciation of Thai baht will also help foreign customers buy more products. At present, foreign customers do not come to purchase, because of the Thailand government's travel safety warning issued by their national government.

Thailand exports goods Nopapon, President of the shipping industry association, said that the overall situation of exports is fairly normal. Only some products, such as ready-made garments, communicate with business owners to understand that fashion garments are fashion products. There are seasonal patterns, and products need to be adjusted during the season, but the situation is not optimistic before. Due to the transfer of orders from customers to Vietnam, the order situation in the third, fourth quarter of this year and next year is decreasing. In the first quarter of this year, export orders were determined last year. The second quarter is not clear whether orders have been reduced, but the situation in the first quarter has been bad. It is estimated that the export situation is better in the second, third quarter. product More exports will be made because of reduced domestic demand, and electronic products will also increase exports again, although profits have decreased.

The Thai baht's current depreciation is beneficial to exports, but the prospects for the third, fourth quarter and next year are worrying. If the political situation is still unclear, or there are conflicts, foreign customers will not place orders to Thailand factories, and investment will encounter problems, so the long-term situation is worrying. As to whether the target of export growth of 5% can be achieved this year, the association will reassess it according to the situation.