THAILAND: Thai garment manufacturers relocating to Vietnam for lower production costs.
According to the Thai Garment Manufacturers Association (TGMA), there is a recent trend for Thai garment manufacturers to relocate their production bases to Vietnam for cheaper production costs, especially after the country's Democrat Party's election promised to increase minimum wages by 25% over the next two years.
Egytex News Desk
Source: www.yarnsandfibers.com
The information released by the TGMA shows that five leading garment makers of Thailand plan to move their production bases to Vietnam for a combined investments capital of US$50 million. They are namely Hong Seng Knitting Company, Hi-Tech Apparel Company, Nice Apparel Company, Liberty Garment Company and Golden Thai Industry Company.
Besides, Indorama, an international fiber maker and a key player of Thai textile and garment industry, is also following this trend. The company's top management made official visits to Vietnam in March to seek investment opportunities as well as trade co-operation with local partners.
The TGMA expressed its concern that there would be an increasing number of Thai manufacturers moving their factories out of the country to cheaper destinations such as Bangladesh, Indonesia, Cambodia and Myanmar.
If the situation persists, the number of factories in Thailand will drop drastically in the future. There are currently 1,600 garment factories in the country, compared to 2,600 garment factories in 2005.
Source: www.yarnsandfibers.com
From the Egytex news archive, first published on 17 April 2011. Figures and names are as reported at the time.
