Thailand’s furniture exports are expected to recover to growth this year after a contraction of 1-2% in 2014.
Jirawat Tangkijngamwong, vice-president of the Thai Furniture Industries Association, said shipments were likely to grow 5% this year to US$1.26 billion, partially boosted by a focus on high and creative quality.
Thanks mainly to sluggish global demand, Thai furniture exports last year dropped 1-2% to $1.2 billion.
The industry’s export outlook is challenging because most Thai producers are small and medium-sized enterprises who are unable to handle mass production at affordable prices, said Mr Jirawat.
“Our future relies mainly on innovative products and creative designs. We are no longer in a position to compete with mass producers," he said.
Mr Jirawat said the Thai industry was also facing more risks from volatile foreign exchange and tighter timber legality assurance systems in the European Union and the United States.
These systems set out procedures by which timber-exporting countries ensure that products originate from legal sources.
Tighter controls on timber have increased the production costs of the Thai furniture industry by 5-10%, said Mr Jirawat.
With the weakened euro, there are now more imports of European furniture into Thailand, particularly from Eastern European nations such as Romania, said Mr Jirawat.
In a move to boost the industry, the International Trade Promotion Department will hold the Thailand International Furniture Fair 2015 from March 11-15 at Impact Muang Thong Thani.
The fair, which will be attended by more than 200 leading furniture companies, will feature more than 800 booths from all over Thailand and countries including Myanmar, Laos, Cambodia, Taiwan, South Korea, Canada and nations in the European Union.