Thailand Clothing Industry: Small And Medium Enterprises Are Hard To Survive

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< p > over the past 3 years, major changes have taken place in the "a href=" http://sjfzxm.com/news/index_s.asp "Thailand garment making /a" industry, including the daily wage increase and shortage of labour, and many garment factories are moving their factories to neighboring countries to survive.

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< p > from the Thailand World Daily's May 12th report, Wang Luo, vice president of the Thailand garment industry association and vice president of the Thailand ocean shipping export chamber, has made the following views on the future survival and development of the Thailand garment industry.

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< p > < strong > small and medium-sized garment manufacturers basically can not survive < /strong > < /p >

< p > at present, the small and medium-sized garment factories in Thailand are basically unable to survive, and the small factories that can supply orders to shopping malls are able to maintain.

After the increase in labor to 300 baht, the large garment factories moved their factories to neighboring countries. Up to now, 22 garment manufacturers have invested 30 factories in ASEAN neighboring countries, and the next thing to be concerned about is the foreign companies' production orders from which countries they will first consider the benefits they get.

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< p > at present, garments are mainly a href= "http://sjfzxm.com/news/index_s.asp" > export market < /a >, the United States accounts for 32%, the European Union accounts for 28% and Japan accounts for 13%, and some other countries.

The US led negotiations on the p Pacific Strategic Economic Partnership Agreement (TPP) have not made much progress, because the government believes that joining the agreement will lose interest, but the industry thinks it can benefit, for example, the service industry does not agree, because TPP has written up to 95% of the service products market and needs to be opened to member countries. There are 27 negotiations agreements, including the deeper opening of labor services, employment policies and society, while the remaining 11 member states also show no support for it. It is estimated that the negotiations will be completed after 3 years' delay.

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In the EU market, Thailand will be disqualified from the EU's preferential treatment tariff (GSP) by 20% from January 1, 2015. The original intention to promote negotiations between the EU and the Thailand free trade area agreement can be obtained after the GSP is abolished. Thailand's export products to the EU can receive zero tariff or more than zero tariff. However, there is no functional cabinet at present. The final negotiations in April did not reach any decision. Whether the new round of negotiations in the next 3 months will continue to be carried out has not been known yet, so that the EU and Thailand free trade agreements must not be implemented in 2015.

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< p > < strong > in Vietnam, the investment potential of setting up garments is less than /strong > /p >

< p > Vietnam has the most potential investment in the < a href= "http://sjfzxm.com/news/index_s.asp" > garment industry < /a >, because the agreement between Vietnam and the EU free trade area is expected to be signed in July 2014, and the p Pacific Strategic Economic Partnership Agreement (TPP) between Vietnam and the United States is estimated to take 3 years to negotiate. Before that, export products such as Vietnam and the United States can be successfully signed to the EU market, and the factories invested in Vietnam can produce more to supply the US market, and will produce factories in Laos, Kampuchea and Burma to supply the EU market.

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< p > in the next 3 years, negotiations on the free trade area agreement between Thailand and the EU are expected to be completed. Thailand's factories will benefit from exporting more products to the EU. China will reduce exports and increase domestic consumption in the future due to the implementation of the economic restructuring policy, and Thailand can also increase exports to China.

Japan has also increased its purchases of products from Thailand, and exports to Japan have grown by 10%. At the same time, Japan will also understand the countries where Thailand's export products are located and understand the favorable policies of various countries' exports so as to obtain cheaper products.

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< p > Malaysia is also a member of the TPP agreement, but there is still a legal conflict that needs to be adjusted, while Indonesia has not joined TPP, so labor-intensive industries mainly enter Vietnam, or Laos, Kampuchea, Bangladesh and Burma invest to make use of the cheap labor force in those countries.

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Investment in Vietnam is still in the economic development. However, it is estimated that in the next 2 years, the level of labor remuneration will rise to a level comparable to that of Thailand. At the same time, there is also a demand for raw materials in the upstream industry to meet only about 20% of the demand. This is also why some Thailand operators are not interested in investing in Vietnam. These operators think that the export of finished raw materials to Vietnam is to be assembled and processed into final products, and Vietnam is used as the place of production. However, in fact, it is not allowed to do so according to the TPP agreement, because Thailand has not yet joined the TPP agreement.

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< p > < strong > ASEAN border trade market demand > /strong > /p >

< p > if Thailand's border trade with neighboring countries reaches 2 trillion baht, the trade mode must be adjusted. Now, the border trade of Thailand's border trade market in the narrow and long belt of Thailand is carried out by the middle merchants. These foreign businessmen do not have a thorough understanding of Thailand products, and if they can get business with direct merchants, they will have more durable trade pactions. Producers and merchants need to have competitive advantages in product prices and quality, and strengthen the development of markets to important cities in neighboring countries.

The government departments, such as the Commerce Bureau of Frontier government, need to formulate corresponding product development plans to meet the needs of trade in the border trade market, and strive to solve the existing obstacles in border trade, improve the payment system and strengthen the auxiliary development of infrastructure in neighbouring countries, so as to support cross-border trade pactions more smoothly.

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< p > < strong > the political problems have been delayed for a long time. The influence is greater than /strong > /p >

< p > domestic operators only hope that the political situation will be over as soon as possible, no matter what way they want to have an end.

In my opinion, it is difficult to solve the political problems this year. Many civil society organizations have declared that they do not participate in politics. Before the civil society organizations tried to act as intermediaries, they hoped that the two sides could sit down and negotiate, but they did not get the answers. It is difficult for them to find mediation intermediaries and do not know how to solve them.

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< p > < strong > clothing manufacturers' support scheme < /strong > < /p >

＜p＞　　今年泰國制衣工業商會就國內制衣工業的扶持方案進行了探討，制定了2014至2016年泰國制衣業扶持方案藍圖，分為6個方面：一是加強開發產品和推動經營商重視對產品的開發，設立產品開發中心，從商業部爭取約1000萬銖的經費進行運作;二是提高生產效率，改進生產流程，減少損耗和降低成本，提高生產管理，努力在工業內形成綜合功率完善的機制，發展經營商多樣化生產技能，和努力減少生產對環境的影響;三是努力創立產品品牌和零售品牌，目前泰國制衣工業高達90%訂單是貼牌生產加工，自有品牌僅10%，因為在零售商場寄售的流程中存在問題，自有品牌經營商需要自行承擔程式庫存和被寄售商場收取較不合理的高額進場費用;四是努力建成具有世界水平的原料釆購體系，將上中下游產業鏈環節有機地聯合起來，使得原料供應系統化;五是發展產品貿易和適

In response to the opening of the international market, the user data library of the Thailand product target market and the signing of the free trade zone agreement with foreign negotiations are strengthened; and six is the expansion of the production base for foreign countries.

If the garment industry in Thailand can achieve the above development steps, the trade in garment products in Thailand is bound to increase.

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