Interview with Mr Virat Tandaechanurat

Mr Virat Tandaechanurat
Executive Director
Thailand Textile Institute (THTI)

The country of mountains, Thailand has been experiencing a sustained growth since the past decade. GDP growth of the country is mainly driven by the manufacturing sector, where textile and garment industry contributes as one of the main export sectors. Currently, Thailand's textiles and garments rank 21st and 17th of the world's market share. With a goal of forming an autonomous organization to focus the development of such a potential sector sustaining competitiveness in the global textile market, The Thailand Textile Institute (THTI) was established by virtue of a cabinet resolution of October 15, 1996, at the initiative of all textile associations in Thailand, endorsed by the Ministry of Industry. As the Executive Director, Mr Virat Tandaechanurat is at the helm of managerial affairs of THTI. He is a BE in Mechanical Engineering, Chulalongkorn University, and an MS in Textile Technology from Georgia Institute of Technology, USA. Mr Tandaechanurat has also taken several trainings viz; Textile Weaving Engineering from Japan; Industrial Extension Officer, Philippines; Application of Robots in Small and Medium industries, Japan; and Development of Metal Working Industry from Belgium. Prior to his present post at THTI, Mr Tandaechanurat was a Deputy Director General of Department of Industrial Promotion (DIP). He had been Director of various departments in DIP namely, Bureau of Industrial Enterprise Development; Bureau of Cottage and Handicraft Industries Development; Bureau of Industrial Promotion Administration; and Textile Industry Division. Mr Tandaechanurat started his career in 1984, as a Senior Engineer for Textile Industry Division, DIP. For the period 1998 to 2000, he has also served Ministry of Industry as Secretary General in Office of the Cane and Sugar Board. Besides, he is also an active Advisor to Thai Tool and Dye Industry Association, Thai Foundrymen’s Society, Thai Textile Dyeing, Printing and Finishing Association, Thansetakij’s SMEs Club. Face2Face team interviewed Mr Virat Tandaechanurat to know more on Thai textile industry and the activities of THTI in the interest of industry’s welfare.

Could our visitors & members know more about the role that THTI plays in textile industry of Thailand?

THTI is a leading organization in driving textile and clothing industry for sustained development in utilizing innovation and being competitive in the global market by emphasizing on fashion-led marketing across all production development systems.

Mission

Directing and driving the textile and clothing industry in the right direction

Enhancing and supporting the textile and clothing entrepreneurs for higher competitiveness with respect to other countries

Being a hub in networking and exchanging services among organizations more so for textile entrepreneurs

Linking all textile, clothing and fashion entrepreneurs for continuous linkage and development

What are your views on Japan-Thailand Economic Partnership Agreement (JTEPA) and business opportunities? How would this agreement bring good tidings especially for Textile & Clothing sector?

JTEPA is great opportunity for Thai textile & clothing industries. There is not only an opportunity for tariffs reduction only, but there is importantly an opportunity to build up Textile and Apparels Cooperation, which is as following;

The Thai and Japanese governments will encourage cooperation between the textile and apparel industries of the two countries with the following objectives among others:

1. To support the promotion of products of Thai textile and apparel industry including those of potential local manufacturers (e.g. SMEs products, OTOP products) and their further cultivation in the Japanese market.

(A) Japanese side will provide the Thai textile and apparel industry with the following information:

*Japanese textile and apparel market and trends in the retail sector *Fashion and design trends

(B) Japanese side will support the Thai textile and apparel industry in its development of sales networks in the Japanese market through the following means:

• Introduction of buyers in Japan • Provision of information on business practices in Japan • Provision of information on logistics and delivery systems in Japan • Participation in trade fairs, fashion shows, business meetings in Thailand and Japan

(C) Japanese side will make efforts to invite buyers in Japan to exhibitions/business meetings held in either Japan or Thailand.

(D) Japanese side will support the Thai textile and apparel industry’s market research/survey missions to Japan.

2. To cooperate in the facilitation of investment in technology by the Japanese textile and apparel industry in Thailand.

The Thai and Japanese governments will cooperate with each other to facilitate investment in technology by the Japanese textile and apparel industry in Thailand.

3. To strengthen the technological capacity of the Thai and Japanese textile and apparel industries.

(1) For the purpose of strengthening research and development activities in Thailand, Japanese side will support Thailand’s implementation of R&D centers including textile pilot plants with the following advice in a reasonable manner:

A. Structure and personnel for such R&D centers B. Equipment/machinery to be installed in such R&D centers C. Themes to be studied/researched at such R&D centers

(2) In addition to the above (1), the Japanese will send specialists to Thailand Textile Institute (THTI) to supervise training and provide Thaiand with the following information with an aim to developing skills needed for enhancing R&D activities and testing capabilities.

A. Quality control ( including testing technology), production management, quality standards for each product, quality standards relating to materials ; B. Environmental protection, energy-saving technologies; C. Human resources development, management of in-house structures, personnel management.

In the case of both industries finding it necessary to send specialists/experts from Japan to Thailand to attend seminars/training functions regarding the above A. to C. in Thailand, Japan will make reasonable efforts to cooperate in such matters as the selection of specialists/experts.

(3) Japanese side will cooperate when specialists/experts from the Thai textile and apparel visit Japan for factory visits.

4. To develop business management including logistics, distribution, supply chain management, design and merchandising with an aim to developing Thai grass-root textile and apparels industries.

5. Japanese side will provide relevant information on business management to Thai fashion and fabric designers, including through organizing training sessions and if necessary, dispatching specialists/experts from Japan to Thailand.

6. Both sides will set up a working meeting comprising relevant Thai- Japanese textile and apparel associations and representatives from the Governments of both countries to discuss [T: in detail and exchanging views, including on how to carry out] [J: in detail and exchange views on the] textile and apparels cooperation under the JTEPA.

There has been a remarkable growth in Thai’s exports. How has textile & garment sector contributed to this?

Major Market	Export (Value : Million US$)					Growth (%)
Major Market	2004	2005	2006	2006 Jan-Oct	2007 Jan-Oct	2004	2005	2006	2007 > Jan-Oct
1. USA	2,083.2	2,111.1	2,083.5	1,743.0	1,653.6	11.48	1.34	-1.31	-5.13
2. EU	1,194.9	1,210.5	1,316.8	1,081.6	1,087.4	17.53	1.31	8.78	0.54
3. ASEAN	657.0	775.7	803.2	657.2	761.9	21.62	18.07	3.55	15.93
4. Japan	429.7	412.5	395.4	338	308.8	15.32	-4.00	-4.15	-8.64
5. China	266.1	282.5	249.7	204.6	219.2	47.83	6.16	-11.61	7.12
6. Others	1,769	1,907.3	1,986.0	1,635.1	1,761.6	18.95	7.82	4.13	7.73
7. Total	6,399.9	6,699.6	6,834.6	5,659.5	5,792.4	17.10	4.68	2.02	2.35

- US has been the biggest importer. Thai textile and clothing export to US and EU are respectively $1,653.6 millions and $1,087.4 millions.

ITEM

Export (Value : Million US$)

Growth (%)

	2004	2005	2006	2006 Jan -Oct	2007 Jan-oct	2004	2005	2006	2007 Jan - Oct
Textile & Clothing	6,399.9	6,699.6	6,834.6	5,659.9	5,792.4	17.1	4.68	2.02	2.3
Textile	3,002.6	3,230.2	3,289.3	2,712.6	2,984.8	22.67	7.58	1.8	10.0
Clothing	3,397.3	3,469.4	3,545.3	2,947.3	2,807.6	12.59	2.12	2.2	-4.7

- October saw the value of total Thai textile and clothing exports to world rise to $5,792.4 million, up 2.3% on the same month last year.

* Thai Textile exports to world rise to $2,984.8 Millions, up 10% * Clothing down by -4.7 % at $2,807.6 Millions

Can you please throw some light on the investment opportunities and incentives available in Thailand’s Textile and Garment Industry to investors across the globe?

Thailand, now one of the ASEAN members has been actively encouraging all the members to set up economic cooperation and Free Trade Agreement, called AFTA for past many years. Presently, AFTA is almost completely applied to all goods, including textile and clothing. ASEAN countries are aggressively supporting the free flow trade of goods and services, and FTAs among nations and regions, such as Japan, EU, China and Korea, are progressing. Thailand geographically has become the hub for these countries. Therefore, textile and clothing investors can make use of Thailand as springboard for developing trades with big markets like EU, Japan, China and Korea etc.

Being an important policy maker for a select sector, how have you set your mission planner for the 2 - 3 years?

In order to promote Thai Textile & Clothing industries, THTI has studied and proposed a 2008-2012 Master-plan to our government, which has a vision for our industry to be the hub of Textile in ASEAN and requested the government for supporting the following projects; - Cluster Development - Building & adding value of Textile and Clothing by research & development. - Human Resource Development - Expanding Market to ASEAN and new emerging market - Domestic market development - Efficiency productivity of industry - Competitive policy for support industry

What was the rationale behind your recent collaboration with National Nanotechnology centre? What potential do you see in this nascent sector?

This is on the early stage of our long term plan to apply new technology on textile & clothing industry in terms of high valued products and process improvement. THTI will look at the future application of textiles to apparel mainly, and also to other industries, such as medical textile, automotive-textile, agricultural-textile, etc.

What could be the possible repercussions of anti-dumping investigation on Chinese imports?

After China was imposed safeguards from the US and EU, and also as per the FTA of ASEAN-China, taxes were reduced 2006 onwards, Thailand has increased importing fabric from China rapidly. Therefore, local fabric makers are collaborating to propose the government, ministry of commerce, to exercise anti-dumping investigation on Chinese fabric. This case currently is in the process of case acceptance by Ministry of Commerce.

Published on: 31/12/2007

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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