Baht appreciation is one of the major concerns of the garment industry. Exporters, especially small and medium size companies, are already experiencing losses, due to strong currency.
Thai Garment Manufacturers Association (TGMA) President Dej Pathansethpong , explained to Fibre2fashion that, “OEM garment large exporters are trying to square the currency position by increasing import materials. As the resources are 50% of total FOB, we will only be able to manage half of it. We are striving to increase productivity in our business and production process. In an attempt to boost price and margins, small garment exporters are planning to sell directly to end customers and create their own design/collection.”
Dej said that, since Thailand’s standards are higher than countries like Cambodia, Bangladesh, Srilanka, International Labour Organization and other environmental issues are not much of a concern. He assured that Government’s labour policy implementation was significantly satisfactory.
Pathansethpong stressed that the only way to cope with rising labor and energy costs as well as strong currency is for domestic garment industry to improve production both in terms of quality and quantity.
However, President says that expected growth for 2007 is only around four percent over last year.
Regarding Japan-Thailand FTA Dej replied, “Textile and garment is one of Thailand important sector to benefit from JTEPA. Japan wants to buy more from Thailand. Especially on value added and workmanship merchandises. Currently, export of apparel to Japan stands around merely US $230 million per year. We expect with JTEPA, export to Japan to grow at least 30 percent by 2008.”
Thai Garment Manufacturers Association (TGMA) President Dej Pathansethpong , explained to Fibre2fashion that, “OEM garment large exporters are trying to square the currency position by increasing import materials. As the resources are 50% of total FOB, we will only be able to manage half of it. We are striving to increase productivity in our business and production process. In an attempt to boost price and margins, small garment exporters are planning to sell directly to end customers and create their own design/collection.”
Dej said that, since Thailand’s standards are higher than countries like Cambodia, Bangladesh, Srilanka, International Labour Organization and other environmental issues are not much of a concern. He assured that Government’s labour policy implementation was significantly satisfactory.
Pathansethpong stressed that the only way to cope with rising labor and energy costs as well as strong currency is for domestic garment industry to improve production both in terms of quality and quantity.
However, President says that expected growth for 2007 is only around four percent over last year.
Regarding Japan-Thailand FTA Dej replied, “Textile and garment is one of Thailand important sector to benefit from JTEPA. Japan wants to buy more from Thailand. Especially on value added and workmanship merchandises. Currently, export of apparel to Japan stands around merely US $230 million per year. We expect with JTEPA, export to Japan to grow at least 30 percent by 2008.”
