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Thailand will remain regional garment production hub – UNCTAD
Jul '11
Thailand will remain a regional production centre for garments, says the 'World Investment Report 2011' released by the UN Conference on Trade and Development (UNCTAD).

The report says that relocation of garment manufacturing from other Southeast Asian nations, like Malaysia, to Thailand may occur due to the country having abundant raw materials, accessible skilled labour, and modern technology.

As all these are important in developing the supply chain for the local industry, garment makers would want to capitalize on them, the report adds.

Home appliances and processed foods are the other sectors where Thailand may witness industries moving into the country, the report says.

The report, however, states that Indonesia and Vietnam have improved their position as low-cost manufacturing regions, particularly for low-end items.

The strategic location of Thailand as a gateway to Southeast Asia, the Greater Mekong sub region, and China has helped it to position itself as manufacturing hub in the Asean region, according to the UNCTAD's Thailand-based International Institute for Trade and Development.

The UNCTAD report says the world foreign direct investment (FDI) increased five percent in 2010. It now projects the FDI to reach US$ 1.4 trillion to US$ 1.6 trillion in 2011, US$ 1.7 trillion in 2012, and US$ 1.9 trillion in 2013, which was the peak FDI so far, achieved in 2007.

Fibre2fashion News Desk - India

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