Home / Knowledge / News / Apparel/Garments / Garment sector needs incentives for foreign investment
Garment sector needs incentives for foreign investment
Jan '11
The President of the Thai Garment Manufacturers Associations (TGMA) – Sukij Kongpiyacharn said that Board of Investments (BoI) should transform its role from only managing overseas investment in Thailand to promote investment in foreign countries.

He added that companies which are investing in overseas countries must be exempted from the ambit of double taxation in order to encourage investment in foreign countries.

Mr Sukij also condemned the outdated laws of Thailand which are associated with the foreign business deals. As per these laws, domestic businesses which invest in the foreign countries are required to pay 30 percent corporate income tax in the country where the investment is made and another 30 percent in Thailand. In comparison to Thailand, Singapore, Malaysia as well as Hong Kong have much more favorable corporate income tax rules and therefore these countries have enormous foreign investments.

He added that only 30 to 40 companies from Thailand have made investments in foreign countries like China, Vietnam, Laos, Cambodia and Indonesia. The major challenges that are confronted by the garment manufacturers of Thailand include greater manufacturing costs due to the increase in the value of the home currency (baht) and higher wages in the domestic industries, has forced the manufacturers to think about foreign investments, particularly in the neighboring countries.

In this connection, it must be noted that if the overseas expansion is not profitable, it is better to focus within the country. He further added that several industrial giants like Saha Pathanapibul Plc, a subsidiary of the consumer goods conglomerate – the Saha Group are hesitant in investing abroad as the incentives are not very lucrative.

The TGMA is gearing to put up a proposal regarding an 85-million-baht worth apparel product development centre to the Industry Ministry, which will reduce the design costs for the purchasers by 70-80 percent and act as a catalyst for the sellers as well as the purchasers.

The honorary adviser to the TGMA executive board – Vallop Vitanakorn revealed that the appreciating baht, higher minimum wages and the dearth of workers had forced the garment units of Thailand to make investments in neighboring lands in order to reap the benefits from low labor costs prevailing in those countries.

He further added that, the textile as well as the garment industry in Thailand is facing a dearth of 30,000 workers, at present. This shortage is likely to touch 100,000 in the long-run. Of the 700,000 workers employed in the garment and textile industry, around 450,000 are engaged in the garment units.

The United States constitutes the biggest export market of Thailand as the country exports 38 percent of its textiles and garments to the US, 30 percent to European Union, 7 percent to ASEAN countries, 6 percent to Japan and the remaining 19 percent to Africa and Middle East.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Janak Dhamanwala & Sunil Dhamanwala

Moving towards sustainability is also a social change

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search