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Thai garment exports to Japan & China rise in Q1
14
May '12
Exports of garments and textiles from Thailand to Far Eastern countries of Japan, China and Hong Kong showed an increase during the first quarter of the current year.

While Thailand's apparel and textiles exports to Japan witnessed a 36.3 percent growth over the corresponding period of the last year, exports to China and Hong Kong posted a 15 percent year-on-year rise during the same period.

If the rise in clothing and textiles exports to these countries is sustained, it may help counter the expected contraction in Thailand's domestic textile industry in the second-half of this year, according to the Thai Garment Manufacturing Association (TGMA).

Traditionally, the second-half of a year is the peak season for Thailand's clothing and textiles exports which decides the overall textile and garment industry direction.

Thailand's garment exports to Japan have increased owing to tariff reductions under the Japan-Thailand Economic Partnership Agreement.

On the other hand, China has too many orders in its hands, and has forwarded some of its orders to Thai manufacturers.

The US accounts for around 30 percent of all Thai apparel and textile exports, whereas 20 percent of exports are destined to the EU.

However, there has been a dip in demand from these two countries this year, owing to financial crisis in these countries and Thailand's clothing and textiles exports to these countries fell by 7 percent year-on-year to US$ 750 million during the first three months of 2012.

Fibre2fashion News Desk - India


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