Thai textile industry predicts growth in 2010

"Exports of textiles and garments from major global players like China, Eastern Europe, Mexico and Cambodia were down sharply in the last two years, as a result of economic recession worldwide," said Dej Pattanasettapong, former chairman of the National Federation of Thai Textile Industries (NFTTI). He added that Thailand was no exception, with a moderate decrease of 13% in 2009."

Mr Pattanasettapong said: "The country's ability to survive the downtrend of the global textile and garment market can be attributed to continuous product development and improved quality assurance that are trusted by international buyers. But it is not enough. On-trend designs, upgraded manufacturing process, strategic branding, trend setting and better distribution networks are also priorities in order to put Thailand on the world's fashion map in the next ten years."

He added: "Other key factors include our human resources, especially Thai fashion designers, who are highly competent at producing trend-based, season-oriented collections. Support from relevant industries has also played an important role in the success."

According to Pongsak Assakul, president of the Thai Textile Manufacturing Association (TMA), despite economic and political challenges during recent years, the Thai textile industry is rebounding quickly, with export growth of 10-15% forecast for 2010. "The forecast is based on optimism gained through the region's expanding opportunity," he said. "As part of this, the Source Asian Full Service Alliance, or SAFSA, was founded by the collaborative effort of 10 member countries of the ASEAN Federation of Textile Industries (AFTEX) and the ASEAN Competitiveness Enhancement (ACE), and funded by the US Agency for International Development (USAID). The objective of this 3-year initiative is to enable the effective pairing of local manufacturers and buyers within the region and from around the world, promoting ASEAN's capacities and regional synergy to facilitate the needs of the global market."

With products spanning woven tops, woven bottoms, sleep wear, lingerie, athletic wear, children wear, knitwear, etc,

SAFSA's initial target is 20 pairs of manufacturers and buyers, covering product lines that include woven tops, woven bottoms, sleep wear, lingerie, athletic wear, children wear, knitwear. Participating brands so far include Guess, JC Penney, Polo Ralph Lauren, VF, PVH, as well as European brands such as Debenhams, Hugo Boss, Max Mara and Benetton.

"By participating in this project, manufacturers are able to optimise operations across the supply chain: cost reduction, production efficiency, quality assurance and timely product delivery," said Mr Pongsak.

Part of the financial support from USAID will be used for the provision of industry experts and advisors, brainstorming sessions, skill enhancement and participation in international trade fairs, especially in ASEAN countries, the US, Europe and Japan.

Komsan Vijitvikrom, president of the Bobae Garment Association, pointed out that street fashion and ODM (Original Design Manufacturer) were currently driving the country's textile and garment industry. "We are making a good progress with these sectors, particularly in terms of design, quality and branding, he said. "There is an increasing number of emerging manufacturers entering into the industry, many of which are SMEs.

"Useful advice and a business-matching service by the Department of Export Promotion (DEP) has been a big help. We expect to see 5-10% growth this year. However, the first things to do are to regain confidence of overseas trade partners and buyers, which has been affected by the country's political uncertainty, to add cultural value to our products and to explore new markets. Targets for our ODM and street fashion include Japan, Korea, Taiwan, China, India and the Middle East."
Thailand's BIFF&BIL trade show takes place from April 1-4 at Impact Muang Thong Thani. It will feature about 1,200 booths from more than 1,000 selected domestic and overseas exhibitors.