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Garment exporters cash in on World Cup mania
Jan '10
Exports of textiles, clothing, sports shoes and leather products are expected to get a shot in the arm with the football World Cup scheduled in June 2010 and which is also expected to revive these sectors, hit be the slowdown of 2009.

Against an estimated US $3 billion garment exports in 2009, shipments from the sector are projected to garner a growth of between 10-15 percent to touch around $3.5 billion in 2010 in the current year, due to the impact of the World Cup.

Commenting on the effects of the World Cup, Mr Witanakorn, Secretary-General of the Thai Garment Manufacturers Association (TGMA) said, "We strongly believe the World Cup will definitely give our exports a shot in the arm, especially garments and sportswear."

The reason for the optimism is Japan, which is a promising market, as Japanese importers now prefer to buy from ASEAN, instead of China to benefit from tax privileges, especially under the Japan-Thailand Economic Partnership Agreement (JTEPA).

The key markets would remain the US accounting for 40 percent of shipments, the EU 28 percent, ASEAN countries 15 percent and Japan 6-7 percent, while other markets would make up the rest, with exports to ASEAN expected to leapfrog in 2010.

However, Mr Wallop was worried about the labour shortage, which would remain a major challenge for the industry, as recent increases in the prices of agricultural produce have encouraged workers to shift to farming.

Shipments to South Africa which is hosting the World Cup are also expected to receive a surge. For the first 11 months of 2009, Thailand exported garments worth $72.43 million to South Africa, a rise of 3.73%, when compared to the same period a year earlier.

Fibre2fashion News Desk - India

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