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After Rebounding Last Year, Thai Clothing Exports Feel the Heat of Competition

After Rebounding Last Year, Thai Clothing Exports Feel the Heat of Competition

Write: Jervis [2011-05-20]

Statistics released by the Thailand Textile Institute confirm total exports from the Asian country continued rising during the first five months of the year in comparison to the same period in 2004.

With Thailand having experienced a 12.52 percent rebound in 2004 after moving to higher quality products last year, the textile sector was again encouraged by increasing sales.

The increase in sales is however down. For the first five months of this year sales exports increased by 4.83 percent.

In a statement by the Thailand Textile Institute earlier this year, worries were high that with the end of the textile quota period, competition, especially from China, has greatly eaten into the market share in Asian, European and North American markets.

It is encouraging news for Thai textiles that, in spite of strenuous Chinese competition, increases in exports are still rising, although less so.

Exports of high quality garments have been increasing and allows Thailand extra scope and breathing space that enables it to confront its competitors.

Thailand is also seeking the improvement of the logistics and supply chain system that could enable its textile industry to improve efficiency and promptness.

Overall, January to May saw an increase of apparel exports from Thailand to the United States of 10.29 percent.

This figure incorporates rising shipments during the month of May when exports rose to 12.45 percent in volume terms.

Thai cotton products made up the bulk of this increase with a rise of 19.61 percent during the January-May period.

Men's and women's knit shirts (338/339) were up 122 and 56 percent respectively with men's and women's trousers (347/348) also doing well. Prices in these categories also fell.

With quotas and embargoes in place on these and other categories of Chinese textile and apparel, Thai products could stand to benefit from increasing sales during the second half of 2005.