The textile and garment industry plays a significant role in Thailand’s economic and social development. This diverse and heterogeneous industry covers a wide variety of products; everything from hi-tech synthetic yarns to wool fabrics, cotton bed linens to technical textiles, and pajamas to high fashion.
Such an assortment of end products corresponds to a multitude of industrial processes, enterprises, and market structures, allowing this industry to have one of the country’s top export values, nearly THB 275.1 billion (US $8 billion), and ranking 15th in the world for textile and garment export. Last year (2007), the overall industry was worth THB 500 billion (US $14.6 billion), split almost evenly between the domestic and export markets, with the United States, France, and Japan representing 60 percent of the foreign export market.
When this industry first began to develop over 50 years ago, much of its success was due to Thailand’s numerous competitive advantages; for example, cheap labor, lowpriced property, increases in the import and export quotas, and the currency crisis in 1997 all made Thai products favorable in the world market.
However, as time passed, the Thai textile and garment industry began to face many difficult challenges such as an increase in wages, a reduction in total productivity, a drastic increase in competition, a fluctuation in the world’s economic situation, and in 2005, the cancellation of quotas.
These internal and external factors cautioned the Thai textile and garment industry that it was losing its former comparative advantage. The government took this warning as an opportunity to adjust the industry accordingly; they began to shift their focus to quickening buyers’ responses, offering higher quality and standards for final products, upgrading technology, providing competitive pricing, providing training for their workers, and innovating their products.
Mr. Virat Tandaechanurat, Executive Director of the Thailand Textile Institute (THTI), explained, “At this time, global competition really began to intensify so there was a need for Thai entrepreneurs to adjust and make strategic changes as well as develop new products through valueadding enhancements and innovation. THTI played a major role in these advancements and continues to help further develop the textile and garment industry in order to remain competitive in the global mark
hello
The textile and garment industry plays a significant role in Thailand’s economic and social development. This diverse and heterogeneous industry covers a wide variety of products; everything from hi-tech synthetic yarns to wool fabrics, cotton bed linens to technical textiles, and pajamas to high fashion.
Such an assortment of end products corresponds to a multitude of industrial processes, enterprises, and market structures, allowing this industry to have one of the country’s top export values, nearly THB 275.1 billion (US $8 billion), and ranking 15th in the world for textile and garment export. Last year (2007), the overall industry was worth THB 500 billion (US $14.6 billion), split almost evenly between the domestic and export markets, with the United States, France, and Japan representing 60 percent of the foreign export market.
When this industry first began to develop over 50 years ago, much of its success was due to Thailand’s numerous competitive advantages; for example, cheap labor, lowpriced property, increases in the import and export quotas, and the currency crisis in 1997 all made Thai products favorable in the world market.
However, as time passed, the Thai textile and garment industry began to face many difficult challenges such as an increase in wages, a reduction in total productivity, a drastic increase in competition, a fluctuation in the world’s economic situation, and in 2005, the cancellation of quotas.
These internal and external factors cautioned the Thai textile and garment industry that it was losing its former comparative advantage. The government took this warning as an opportunity to adjust the industry accordingly; they began to shift their focus to quickening buyers’ responses, offering higher quality and standards for final products, upgrading technology, providing competitive pricing, providing training for their workers, and innovating their products.
Mr. Virat Tandaechanurat, Executive Director of the Thailand Textile Institute (THTI), explained, “At this time, global competition really began to intensify so there was a need for Thai entrepreneurs to adjust and make strategic changes as well as develop new products through valueadding enhancements and innovation. THTI played a major role in these advancements and continues to help further develop the textile and garment industry in order to remain competitive in the global mark
hello
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