Textile exports face intense competitive pressures

08 Feb '07

1 min read

The Industrial Economics Office is forecasting that the Thai textile and garment manufacturers will probably face competition from low cost rivals in the important export markets.

The possibility of restrictive trade measures might cut down the market access and challenge competitiveness of Thai exports.

Other factors like expensive raw materials, rising oil prices and the suspension of Thai-US and Thai-Japan free trade agreements added to market uncertainties.

Countries like China, Vietnam and India are emerging as the main competitors for Thailand with their comparative cost advantage.

However, if Thai producers maintain manufacturing and tailoring quality according to international standards, the growth of textile and garment exports were likely move up in the current fiscal year as compared to 2006.

During the last fiscal year, textile export dropped 5.3 percent and clothing export declined 6.2 percent at the three important markets of the US, the European Union and Japan .

Experts predict that the prospects for this year's sales in overseas markets look slightly better.

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