Kasikorn Research Center estimated on August 19 that the total value of Thailand’s textile and apparel exports in 2014 would reach US$7.5-7.7 billion, a year-on-year increase of 0-3%. Factors supporting the positive growth of total textile and apparel exports this year include the improvement of the world economy compared with last year, the stimulation of the World Cup, the accelerated growth of orders from the main trading partner the European Union due to the end of Thailand’s Generalized System of Preferences at the end of the year, and Japan’s reduction in China’s Dependence on production bases.
Export markets with good growth momentum include Japan, the European Union, ASEAN, China, South Korea, etc. At the same time, products with market penetration potential in the future will be high value-added products or high-tech products, such as technical textiles (industrial textiles) used in industries such as automobiles and medical care that have promising international market prospects, and products that are in line with world consumer trends. Such as Eco-Textile, and products that meet the trends of population aging, urbanization development, and the expansion of the middle-income class.
Although Thailand’s textile and apparel exports in 2014 can continue the growth trend of last year, compared with other producing countries in the region, trade barriers and competitiveness will still become severe challenges for Thailand’s textile and apparel exports in the future. The two major obstacles come from structural problems such as labor shortage and rising wage costs, as well as the cancellation of preferential tariff treatment for Thailand by some major trading partners and the lack of agreement in trade negotiations.
Kasikorn Research Center recommends that Thai manufacturers should improve their competitiveness and open up new export markets, especially countries that have signed free trade agreements with Thailand, to create differentiation by highlighting their strengths, and in particular, they must focus on developing products that meet consumer trends and market demands. products, finding ways to cope with soaring costs and expanding investment in neighboring countries to build sustainable production bases.
