Textile industry urged to develop supply chains within Asean
Textile industrialists in Thailand have been called upon to institute supply channels within Asean region to boost the industry with an intention to establish the country as a leading exporter of textile items.
Bangkok Bank Executive Chairman Dr. Kosit Panpiemras has advised domestic industries to join forces to evolve a vigorous supply chain, which the private sector can manage to achieve on its own.
Addressing a seminar at the Thailand Textile Institute, Dr. Panpiemras made a mention of how China, in keeping with its 12th Economic Development Plan, streamlined its textile industry.
China, he said aimed at sustaining its export competitiveness and employment ratio by shifting its focus from being a “big” industry player to a being a “strong” industry player.
Although rise in wages of labourers had an adverse effect on China's export capacity, it is still trying to achieve a double-digit export growth, he added.
Many countries are at present endeavouring to preserve their basic industries in order to maintain local employment levels, he said.
Likewise, the Thai textile industry could also sustain by building skilled labour and by evolving new design and technology, he elaborated.
According to Dr. Kosit, a 300 baht rise in daily minimum wages next year onwards is expected to increase the production costs. The Thai industrialists should therefore join forces with other Asean counterparts to be a part of the supply chain, he said.
Development of a strong supply chain in Thailand would further a sustenance opportunity for the entire industry of the country. The country could back the industry by acting as an exporter, yarn and textile supplier and also a logistic service provider, to sustain employment.
Dr. Kosit said that presently, as Thailand heavily depends on the global supply chain, it should consider Asean as a market and also as a production chain.
Executive Director of the Thailand Textile Institute, Virat Tandachanurat said that hike in minimum wages may impede the growth of textile exports from Thailand during 2012-15 and may even lead to volatility in exchange rates.
He thus requested the Government to keep a close eye on the effects of these happenings on small scale entrepreneurs in the region.
Textile industrialists also expect some assistance from the side of the Government in relation with development of the production technology, he said.
During the initial seven months of the current year, Thailand shipped textile products worth US$ 4.98 billion, a year-on-year rise of 19 percent. Overall exports of the sector employing around one million workers stood at US$ 7.68 billion during 2010.
Following robust growth in Asian markets, the textile and garment exports for current year are likely to go up by 17 percent.
The Asian and the Asean markets are seen to take-over the European and the US markets by 2016, as the purchasing power of the two conventional buyers is expected to remain low owing to the financial crunch.
Fibre2fashion News Desk - India