Textile And Garment Industry: Who Can Grasp The Springboard And Leap Forward?

< p > > a href= "http://sjfzxm.com/news/index_p.asp" > textile and garment industry < /a > is one of the export oriented industries in Thailand, covering all aspects of the whole industrial chain from fiber to clothing production. From the end of 2013, Thailand began to have political problems. Thailand Industrial Institute believed that the persistent political problems caused Thailand's domestic consumption to slow down, and small and medium-sized enterprises encountered problems of lack of liquidity in operation.

In 2013, production of garments, garments, footwear, textiles, household goods and other enterprises in Thailand decreased significantly.

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< p > Thailand is one of the ASEAN member countries. In 2015, it was the deadline for ASEAN leaders to decide the establishment of the ASEAN community. This decision seems to convey a benign signal for the development of Thailand, which has excellent geographical location in all ASEAN countries.

In addition to geographical advantages, Thailand also has a series of advantages such as logistics hub, high degree of freedom of business and high degree of internationalization, so that enterprises in various countries are eyeing Thailand as a perfect springboard to enter the entire ASEAN region.

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< p > in recent years, along with the China ASEAN Free Trade Area, the zero tariff of most products has been launched in full scale, the export of China's products to Thailand has been increasing continuously, and Thailand's market share in ASEAN has been continuously occupied. Therefore, whether Thailand's textile industry can seize the opportunity of the ASEAN community to develop vigorously, or whether China's textile enterprises can seize the ASEAN market share with Thailand's springboard will seem worth the industry's expectation.

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< p > < strong > > < a href= > http://sjfzxm.com/news/index_z.asp > > government > /a > help enterprises expand trade > /strong > /p >

< p > Thailand has 4500 textile and garment factories, employing about 1000000 employees, accounting for nearly 20% of the total manufacturing employment, GDP accounts for 17% of the total Thailand, and the annual export volume of textile and clothing reaches US $about 6000000000, which is the second largest export industry in Thailand.

Thailand's daily wage of labor force has implemented a minimum wage of 300 baht standard policy, and labor intensive industries have moved to neighboring countries, resulting in the reduction of new factories including textile and clothing industries.

Natapu, director of the Thailand factory hall, said that the decline in the capacity of the original textile mill, coupled with the decrease in the new factory, confirms the prospect of a diminished textile industry.

In addition, new factories for leather, household products and chemical products also tend to decrease.

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In the first half of this year, the world economy has gradually returned to P, which has also injected momentum to the development of Thailand's textile and garment industry.

Kamon, deputy director of the Ministry of foreign trade promotion of Thailand Ministry of industry, said that clothing will be one of the important industries that Thailand has strong growth this year.

Large clothing companies in Thailand have moved their factories to neighbouring countries to reduce labor costs and protect market share. This year is expected to be the golden year of export clothing in Thailand, and the export value is expected to grow by 5%.

In addition, in May this year, the government of Thailand proposed to set up a special fund with a minimum amount of 1 billion baht to help small and medium-sized enterprises that have already begun to expand their scale of trade in neighboring countries and enhance their competitiveness in the coming economic integration of ASEAN, including Thailand operators with rich experience and a certain scale of textile, clothing, leather and footwear industries.

"We look forward to helping small and medium-sized enterprises penetrate into the ASEAN market including Kampuchea, Laos, Burma, Vietnam and Indonesia," deputy director of the Thailand Investment Promotion Council, Chuk di CHAC KDI said.

Because these countries not only have cheap labor resources, huge markets, but also enjoy GSP tariffs. "

And he said Thailand will focus on ASEAN's entire market, because ASEAN has a large market of 600 million people.

ASEAN economic community will become a shortcut for Thailand to expand its business in the near future.

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< p > < strong > Thailand enterprises have not yet prepared for the preparation < /strong > /p >

< p > although the Thailand government and relevant associations have made efforts to promote the development of Thailand's small and medium-sized enterprises and seize the opportunity of the ASEAN community's establishment next year and expand their overseas trade, however, the director of the center for International Trade Research of Thailand chamber of Commerce said that according to a recent survey, about 63.1% of the 51.2 000 small and medium-sized manufacturers and exporters predicted that they would not have time to adjust the ASEAN economic community's arrival, which means they might miss the opportunity in the fierce competition in their neighboring countries.

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< p > the survey is entitled "how Thailand exporters and manufacturers adjust their pace to the ASEAN Economic Community", including 1000 Thailand exporters and manufacturers of 19 products, such as textile and clothing.

And last year's survey, about 43.7% of SMEs and exporters did not prepare for the upcoming ASEAN economic community, while 42.2% of the enterprises indicated that they were still in the process of adjustment.

53% of enterprises pointed out that they lacked the knowledge about ASEAN ASEAN trade agreement and market access.

He appealed to the government to set up an organization to help small and medium enterprises invest overseas, establish a Thailand product distribution center and a Thailand Manufacturing Association in neighboring countries, build a distribution network of Thailand products, encourage small and medium-sized enterprises to produce or establish distribution bases in neighboring countries.

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< p > < strong > Chinese enterprises should seize the market and enhance competitiveness. < /strong > < /p >

< p > in recent years, trade between China and Thailand has become increasingly frequent. The statistics of the economic and Commercial Counsellor's office of the Chinese ambassador to Thailand show that in 2013, the total value of trade between Thailand and China amounted to 64 billion 965 million US dollars, accounting for 13.6% of the total trade value of Thailand, boosting China's first ever overtaking Japan as the largest trading partner of Thailand.

In particular, after China and ASEAN Free Trade Area launched the zero tax of most products, Chinese products took the opportunity to enter the Thailand market quickly. In the past 4 years, the total value of imports from Thailand increased by 22.9%.

Many enterprises in China are also optimistic about the development in Thailand. For example, by the end of 2013, the Thailand Industrial Park Management Committee had planned to set up a special SME industrial park to support the growth of small and medium-sized enterprises, and promote small and medium enterprises to invest in neighboring countries such as Indonesia, Vietnam and Burma.

Chinese investors believe that Thailand is very suitable for export base, and Chinese enterprises can take this opportunity to "curve" to enter Southeast Asian and South Asian countries, so that products and services have a broader market.

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< p > besides, it is understood that in the ASEAN market, Chinese products have seized some of the market share of Thailand products. Some foreign investors have shifted the production base in Thailand to other ASEAN countries to give ASEAN operators greater challenges as the target market of Thailand.

The entry of Chinese products has led to increased competition, especially China's products that meet the needs of ASEAN's urbanization, including electronic products, textiles and garments. Similar products in Thailand may lose their price advantage.

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< p > then, what problems will be faced by China's textile expansion to Thailand and ASEAN? Zhao Shulan, an Associate Research Fellow of Yunnan Academy of Social Sciences, told reporters: "Thailand is a country with better economic development in the ASEAN region. If Chinese enterprises can smoothly enter the Thailand market, it will surely provide a useful reference for entering other ASEAN countries."

Zhao Shulan said that Thailand textile industry has certain development advantages, for example, Thailand's textile industry has formed a large-scale supply chain mode, and the quality and added value of textile products have more room for expansion.

In order to enhance the competitiveness of domestic textiles, the Thailand government has facilitated the expansion of Thailand's textile exports in terms of market environment and policies.

At the same time, the textile industry in Thailand is also facing many challenges. For example, the supply of textile raw materials in Thailand is mainly restricted by imports. The rise of labor costs also poses challenges to Thailand textiles. The appreciation of Thai baht will also affect the competitiveness of products.

"The opportunity for China's textile expansion to export to the Thailand market and ASEAN market may be the competitiveness of its products," the opportunity for ASEAN community to take shape.

Zhao Shulan said.

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