According to news from Thailand’s “Sing Siam Daily” on May 28, Wang Luo, vice chairman of the Federation of Thai Industries, revealed that 10 large clothing companies in Thailand have spread their production bases to 35 neighboring countries, such as China, Vietnam, Cambodia, Laos and Indonesia.
Wang Luo said that clothing companies are also targeting the newly opened Myanmar, but actual investment will not be in the near future because some relevant laws are still unclear, and the market potential also needs to be studied.
Currently, the total investment value of Thailand’s garment industry abroad is approximately US$120 million, most of which are joint ventures rather than sole proprietorships.
As for domestic problems, Wang Luo said that the government has reduced the corporate income tax rate from 30% to 20%, which is of great help in reducing the cost of the garment industry. In any case, apparel production is expected to slow down this year, with the full-year export value shrinking to US$248 million, down 3.41% from last year. In addition, production dropped to 187 million pieces, a year-on-year decrease of 2.7%.
