Sector eyes growth across region to offset downturn

Sector eyes growth across region to offset downturn

Thailand's printing and packaging industry expects to see flat domestic growth this year.

However, it aims to grab a bigger market share in the Asean Economic Community (AEC), where demand has been rising in line with strong economic growth, according to the Federation of Thai Industries (FTI).

Wichai Sakolvararunruang, chairman of the FTI's Printing and Paper Packaging Industry Club, attributed flat growth in the domestic market this year to the advent of digital TV, which has snatched demand from the printing business.

He suggested that local producers of printing and packaging products should switch to value-added packaging and printing items to capture a share of the high-end global market.

Producers should also penetrate the neighbouring markets of Cambodia, Laos, Myanmar and Vietnam, which have the potential to expand in line with the growing economy, especially after the AEC comes into effect at the end of this year.

"Thailand is now the production base of the printing business. Thai producers should take advantage of the AEC to expand business into neighbouring countries by using their expertise and innovation to gain a competitive edge," he said.

Apart from flat growth at home, the Printing and Paper Packaging Industry Club expected to see a minimal rise in exports of 2-3% this year, down from the 5% growth in the previous year, as many companies have allocated their advertising budgets away from the printing business to digital media.

Despite minimal growth, Mr Wichai said the overall printing and packaging industry was estimated to be worth more than 100 billion baht this year, including exports.

He added that the printing business faced strong demand in the region, especially in Myanmar and Cambodia, where demand for educational books and fashion magazines is strong.

"We have seen a slight drop in imports from Cambodia, Myanmar, Laos and Vietnam. It is because they are about to develop their own printing businesses, as you can see some companies order printing machines to produce their own print and packaging products. So we need to hurry up if we want to grab a greater market share in those four countries," Mr Wichai said.

He expected rising demand for food packaging at home would help support the industry in general and prevent it from falling into negative territory after seeing flat growth this year.

Do you like the content of this article?
COMMENT