As a consequence of suspension of free trade talks with the US and a possibility of having free trade agreement with Japan, growth in garment exports is anticipated to decrease by three percent in 2007. Japan and the US are top importers of Thai clothes.
Thai Garment Manufacturers Association (TGMA) President Dej Pathanasethpong said that garment exporters were troubled by negative factors which would persist in the coming year.
Competition from China and Vietnam will reduce Thailand s exports. Appreciation of the baht has made Thai garments costlier in global market as against less expensive Chinese duds, restricting circulation of Thai currency.
Garment exports can increase to US $4 billion-$4.5 billion (Bt150 billion to Bt169 billion) in 2007 as against about $3.8 billion in 2006.
Some Japanese importers have stopped placing orders as there is a possibility of Thai-Japan Economic Partnership Agreement being implemented, which may harm garment business in 2007.
Dej informed that producers would concentrate on creating their individual brands instead of ordered clothes, to secure export growth and competition next year.
TGMA statistics show that Thailand s garment exports had rise of 4.9 percent to reach $2.37 billion in first eight months of 2006 from the same period last year, whereas textile exports went up 2.4 percent to reach $2.16 billion.
