Garment exports set to increase

Garment exports set to increase

The Thai Garment Manufacturers Association expects garment exports to increase by 5% to US$3 billion this year despite political unrest.

President Sukij Kongpiyajarn said quality of products and competitive prices will be the key factors to achieve the target.

"Given the baht has already reached its lowest level and economies in Europe and the US are improving, our export outlook shows good signs,'' he said.

Sportswear, underwear and children's clothing are the best products for exports.

Mr Sukij said Thai sportswear has grabbed a significant share of the global market. Football's Fifa World Cup 2014 is also providing Thai manufacturers with an opportunity to gain contracts worth more than $800 million this year.

He said political unrest is not affecting operations because purchase orders were made in advance, with product delivery scheduled for mid-2014.

However, Mr Sukij expressed concern that if the turmoil continues, importers might shift their purchases to other countries.

He believed that as long as the protesters do not close international airports or deep sea ports, there will be no severe impact to the country's export prospects.

Mr Sukij said Thai manufacturers have diversified their production bases in Indochina to capitalise on trade advantages from Europe's Generalised System of Preferences and the US's Trans-Pacific Partnership Agreement.

Vallop Vitanakorn, vice-chairman of the Thai National Shippers Council, suggested exporters seek information about trading in Indochina with Thai commercial banks and the Thai embassy before making any decision to expand there.

Understanding local culture, laws, logistic systems and financial transactions are crucial before investing there, he told more than 100 business executives in Bangkok yesterday.

Supranee Komwatcharapong, logistics manager of Japan's NMB Minebea Thai Co, said bilingual recruitment staff offer a short cut to learning local culture.

Minibea diversified its production base of electronic parts into Cambodia with a $60-million factory in Phnom Penh in 2011.

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