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    "Little Embarrassment" Of Thailand'S Textile Industry: Rising Costs

    2017/4/16 15:23:00 108

    ThailandTextile IndustryCost

    The Thailand Garment Manufacturers Association (TGMA) was founded in 1966.

    It can be said that during the 50 years of the development of Thailand's textile industry, TGMA has witnessed an important node in almost all the development of Thailand's textile industry.

    What is the current situation of Thailand's textile industry? What opportunities and challenges are faced with in the future? With these questions, this reporter interviewed YuttanaSilpsarnvitch, executive director of the Thailand clothing manufacturers association.

    The textile industry is the largest manufacturing industry in Thailand, covering all aspects of the entire industrial chain from fiber to garment production.

    However, from 2005-2014 years, Thailand textile enterprises showed a decreasing trend, and the textile industry in Thailand also fell into a "weak" development state. The total number of textile enterprises was reduced from 4440 to 4041, and the number of garment enterprises decreased from 2541 to 2167.

    In recent years, Thailand's wages have risen sharply, and the minimum daily wage of Thailand workers has reached 300 baht (about 59.4 yuan).

    "The rise in labor costs has resulted in an increase of 20% in production costs and also in the overall cost increase. This is a big problem, so buyers choose to go elsewhere in Asia."

    Because of this reason, he said, the 20 largest in Thailand.

    Garment manufacturer

    Some businesses have been pferred to areas such as Burma, Kampuchea, Laos, Indonesia, Vietnam and other relatively low labor costs to reduce production costs and strive for better development.

    However, the pfer of production places and the acquisition of cheap labor must be the "panacea" for the textile industry in Thailand. Tana has made an account of us.

    Since 2011, foreign enterprises have gradually entered the manufacturing industry in Southeast Asia. They have been competing to attract workers. Vietnam's minimum wage has increased by 20%. Indonesia and Laos have risen by 0-22% respectively. Kampuchea's labor cost has risen from $50 a month in 2008 to 120 US dollars for only 2 years, and labor costs have risen rapidly.

    Although the cost of labor in Southeast Asia is relatively low relative to the global market, the trend of continuous labor cost growth is inevitable and unstoppable.

    The trend of rising costs and rising prices is obviously not conducive to the long-term development of Thailand's textile industry.

    The textile industry of Thailand must find ways to reduce production costs, so they set their sights on the long term "cooperative old man" - China.

    Among the ASEAN countries, only Thailand's textile industry can carry out all aspects of the upstream and downstream production, but Thailand does not produce related raw materials and accessories for the textile and garment manufacturing industry.

    "TGMA has been committed to finding cheaper, better quality raw materials procurement channels to reduce production costs, and no one can replace China in this respect."

    According to yantana, the status of China's world factory is still strong, especially in the manufacture of garments and cloth.

    Although the cost of factory workers in China is increasing year by year, they are still living there.

    Textile raw materials

    Chinese enterprises in origin still have strategies to maintain enough profit margins.

    In April 2017, TGMA will lead 20 textile enterprises in the association to Shengze Dongfang Textile City, Suzhou, China, to participate in the China ASEAN textile and garment development seminar and ASEAN Tourism Shopping Festival (hereinafter referred to as "textile seminar").

    Sheng Zedong Textile City of Suzhou, China, is an important carrier and benchmark market for the pformation and upgrading of China's textile specialized market. It collects large amounts of brand resources and leading businesses in the industry. It is currently the world's largest producer market of textile products, and has become the preferred destination for global textile and apparel Buyers.

    This is undoubtedly a good choice for Thailand, which has long been thirst for "cheap and good quality" purchase channels.

    The trip to Suzhou can bring Thailand's textile industry not only the export cost reduction of Thailand textile industry, but also a broad technical platform for Thailand's most famous and valuable textile product, Tess.

    It is understood that due to Thailand's more comprehensive productivity and increasing demand for Thailand silk customers,

    Thai silk

    Production has become an important source of income for the people and the state of Thailand.

    "We hope that we can open channels for China, ASEAN and even the world at the same time, while mining more affordable channels."

    Relying on the platform provided by this textile seminar, he hopes to get in touch with customers from all walks of life and promote the production technology of Tess through the mature and advanced production and publicity experience of Chinese silk, so that the whole world can enjoy the beauty of Tess and Thai culture.

    He believes that the textile workshop offers Thailand an excellent opportunity to introduce and go out.

    "We are looking forward to the first electric shock with Suzhou, China. I believe this will bring huge development benefits to the textile industry and manufacturers in Thailand. It is of great significance to boost the development of Thailand's textile industry and boost the textile industry in Thailand to the world."

    What opportunities and challenges are Thailand's textile industry facing?

    For more information, please pay attention to the world clothing shoes and hats and Internet cafes.


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